Esken : Stobart Energy Investor Presentation

Investor day

November 2021

Management team

Nick Dilworth	Richard Jenkins
S E E X E C U T I V E D I R E C T O R	C E O

Gareth Aylward

F I N A N C E D I R E C T O R

Neil Spencer

C O M M E R C I A L D I R E C T O R

Alan Whitrow

O P E R A T I O N S D I R E C T O R

• Appointed Chief Operating • Officer in September 2018,

having worked as Group	•
Commercial Director since
October 2017

• Qualified as a Chartered

Accountant with BDO LLP	•
before joining Grant Thornton
as a Corporate Financier

C.1.5 years with Stobart Energy

Responsible for overall leadership of the Division, development and delivery of growth strategy

+20 years experience in the Waste and EfW industry, working with Viridor and Suez

• C.1.5 years with Stobart Energy
• Responsible for leadership of the Finance, People and Continuous Improvement teams
• +10 years experience in senior Finance and M&A roles with Ornua, Investec Bank plc and KPMG

• C.2 years with Stobart Energy
• Responsible for service delivery, contracts & strategic relationships with renewable fuel customers
• +15 years experience in the Waste, Local Authority and EfW industry, working with Viridor and Merseyside Waste Disposal Authority

• C.5 years with Stobart Energy
• Responsible for safe and efficient running of all processing and storage sites throughout the UK
• Started career with HMF British Army, with +25 years experience in various operational and manufacturing roles within the waste wood industry

	Employees: c.320 in total, including c.140 HGV Drivers and c.80 Site Operations staff
2	Culture: Ownership, Empowerment, 'Solutions' mindset, 'Straight talking', 'No Ego's'

Stobart Energy: Value chain

F U E L C U S T O M E R W A S T E C U S T O M E R

Fuel supply agreement

Fulfilment

Quality management

Production

Sourcing

Suppliers

4

Evolution of wood biomass market

Biomass energy market evolved through legislative and financial policy from Government to act as enablers for development:

Policy

Financial

• Landfill Directive drove targets to reduce biodegradable waste to landfill and reduce greenhouse gas emissions (predominantly methane).
• Energy policy to move towards renewable energy sources and away from fossil fuels.
• Landfill Tax escalator to fiscally change economics of landfill disposal.
• Renewable Obligation Certificates - Energy subsidy for renewable energy to support investment in infrastructure (Biomass, CHP, AD).

Investment and development of Renewable Biomass projects

• Private Finance investment focused on renewable energy to enable development of biomass plant - ROCS key driver as secure revenue.
• Most plants are Private Finance Structured with SPVs securing financial close with risk transfer to EPC, O&M, Fuel Supply Contracts.
• Some plants developed by Energy Companies (E:ON, RWE) or high energy users (Shotton paper).
• Financial close led to plant development and commissioning.
• Timeline - Financial close 2013/2014 with planned commissioning 3 years later post build.
• Troubled commissioning programme delayed some Biomass plants.

5