The massive storage depot will supply the Drax biomass power station in Selby, which has been converted from coal-burning to wood-burning as the primary fuel for electricity generation.
The new biomass terminal, which includes a new rail loading facility and storage capacity for 100,000 tonnes, is being built at Alexandra Dock 3 at the site of an old grain terminal.
The wood pellets – to be shipped to Liverpool from North America – are a by-product of the commercial forestry and saw-milling industry and will provide Drax with a sustainable low carbon fuel source.
In transitioning from coal to sustainable biomass Drax will reduce its CO2 footprint by some 12m tonnes per annum, the equivalent to removing 10% of the cars on the UK roads.
All of the wood pellets will be sent to Drax by rail from Liverpool to Selby ensuring there is no impact on the local road network.
The terminal is being built as part of Peel Ports’ ambitious growth plans for the Port of Liverpool, with the company already investing £300m to create the UK’s most centrally located deep water container terminal, known as Liverpool2.
Leo Martin, executive director at Graham Construction, said: “This project builds on the experience we have gained from building similar facilities on the east coast of England.
“We will be designing and building a state of the art plant which will employ industry-leading technologies to ensure that the facility can be safely operated and maintained.
“Securing this project is very important to us as it cements our position as one of the leading contractors in the biomass handling industry in the UK.”
The new terminal is set to open October 2015 and will become fully operational in July 2016.