More than £1.5 million has been invested in the creation of an eco-fuels plant on the South Humber Bank, with more to come as it gears up to meet customer demand.
Mistral Renewable Energy is producing eco logs and briquettes from a sprawling site at Stallingborough.
It has set-up a significant operation, initially creating six jobs, with plans to more than double that number soon – and further scope to double again.
Paul Gibbon heads up the family business, having launched five years ago, initially operating in solar and onshore wind.
Having installed more than 5MW of panels and overseen the installation of 62 turbines nationwide, he turned to the renewable fuels two years ago, switching from consultancy and project management to production.
“I could see government subsidies for solar and wind were disappearing, so our focus went into manufacturing renewable fuel,” he said. “Coal is being phased out and now there is a need to find alternatives.
“There are a lot of homes out there with stoves and coal fires, it is a big, big market in the UK.”
Drawn to the area due to the low cost base and having developed contacts in North East Lincolnshire through previous solar work with a frozen food manufacturer in Boston, he has been delighted by the welcome, as the major facility has been established.
It brings in deliveries of UK-grown Forest Stewardship Council-approved wood, with Lincolnshire deliveries a regular occurrence.
Cut and kiln dried, arrays of biomass boilers are used to kick-start the process, fed themselves by the end product. It is then shredded, compressed and either moulded or extruded to form the blocks, which then contain three to four times the calorific value of the original material.
As eco logs and briquettes they are then sold, under Mistral’s own Greenflame brand and the third parties it also produces for.
“Demand from our current customers in huge,” Mr Gibbon said. “Major retailers are looking to buy UK product rather than Eastern European or Far East. There is a lot of onus on going back to UK manufacturing and sourcing now, which it should be.”
As the 63,000 sq ft Netherlands Way facility is scaled up – with clear room for growth in the leased facility – head count is being bolstered. “We have a team of six, and we are looking to get up to 12 or 15 as we go to a two shift system, with scope for further expansion and another 15 jobs,” Mr Gibbon said.
Two presses are producing a tonne of product an hour, with a third to be added shortly, and identified space for three more.
“At full capacity we could make 500 tonnes a week of renewable fuel, 25,000 tonnes a year,” he said.
Resilience is built in to ensure continuity of supply, with a clear eye on the long term, with two son-in-laws in the business too.
“We want to be here for 20 odd years,” Mr Gibbon said, having rented a house in the area. “The friendliness of people up here is fantastic, I’ve not met a single person who has not been open and helpful.”
Investment Hub North East Lincolnshire has also supported, with signposting to help part-fund a new shredder and development work with IT and other grants. “It has been really, really helpful,” he said, as sales of packs and pallet breakdowns are initiated through Amazon.
