DRAX is to see biomass pellets arrive at its North Yorkshire power station from the port of Liverpool following the creation of a new £100 million terminal.

The energy giant has signed a deal with port owner Peel Ports which will see the Liverpool facility handle up to three million tonnes of wood pellets a year, imported from North America.

The pellets are a by-product of the commercial forestry and saw-milling industry and will provide the Selby-based power station with a new, sustainable low carbon fuel source as it continues work to convert three of its six coal-fired units to biomass.

All of the wood pellets will be sent to Drax by rail from Liverpool to Selby, with the biomass terminal set to include its own rail loading facility and storage capacity for 100,000 tonnes

Mark Whitworth, chief executive of Peel Ports, said: "Our new relationship with Drax illustrates the importance of east/west connectivity in driving growth and creating jobs in the North of England.

"In addition it shows how globally important assets such as the Port of Liverpool can be used to unlock the potential of the Northern Powerhouse by helping businesses like Drax ensure the security of their supply by putting in place well thought out global supply chains.”

The biomass terminal, will owned and operated by Ligna Biomass (a company owned by the shareholders of Peel Ports), and is set to open in October this year.

It will become fully operational in July 2016 when it will be able to facilitate up to ten train loads of pellets to be sent Drax per day.