Vital Energi acquires Port Clarence biomass project

The UK based global energy infrastructure company Vital Energi has acquired the Port Clarence biomass facility in Teesside, marking a significant milestone in the company’s strategic asset ownership growth plans.

The acquisition follows the successful raise of £175 million by Vital Energi through a Nordic Bond issue.

Port Clarence represents the next phase of Vital Energi’s evolution from energy solutions provider to significant asset owner, following the successful commissioning of the Drakelow energy-from-waste facility. Vital Energi will further invest in the optimisation of the Drakelow EfW plant to improve its productivity and returns, ensuring it continues to deliver robust operational and financial performance as part of the company’s growing portfolio.

Drakelow processes up to 169,000 tonnes of Refuse Derived Fuel (RDF) and produces up to 18MWe electrical capacity, whereas Port Clarence will produce over 30MWe upon completion – a substantial step-change in scale and ambition. The energy generated by both facilities will be exported back to the national grid.

“This acquisition demonstrates our commitment to owning and operating critical energy infrastructure assets. Following the success of Drakelow, Port Clarence represents our next strategic milestone in building a diverse, long-term portfolio of energy assets that deliver both environmental and economic benefits,” said Ashley Malin, MD of Vital Energi

Biomass Site Transformation

The Port Clarence biomass facility will process up to 320,000 tonnes of residual waste per annum under a 10-year 270,000 tonnes fuel supply agreement with N+P, with fuel sourced from their Hartlepool facility and strategic supply chain partners. This will significantly reduce both landfill disposal and the export of waste materials.

With construction over 90% complete, the biomass project benefits from existing grid connections and all required environmental consents are already in place. The conversion is expected to be completed within 18 months, with first waste anticipated in Q4 2026 and full operational capacity by Q1 2027.

The project will create over 30 long-term skilled positions during the operational phase, with local contractors including Eastgate Engineering and BrandSafway already engaged in supporting the conversion works. The facility will contribute baseload renewable energy generation to the national grid, supporting UK energy security objectives.

Financial flexibility and future growth

Unlike many competitors operating under restrictive institutional investor mandates, Vital Energi’s Nordic Bond structure maintains financial flexibility for future strategic investments and partnerships.

“This financing approach allows us to continue pursuing opportunities that align with our growth strategy while maintaining the ability to work with diverse funding partners on future projects,” added Ashley. “As we approach our 25th anniversary, this represents both a culmination of our journey and a platform for continued expansion.”