The operator of a £35m biomass plant in East Yorkshire looks set to collapse into liquidation.
HRS Energy Tansterne, the company behind the plant near Aldbrough in Holderness, has appointed tax and audit firm RSM to handle the process.
A letter seen by Hull Live, addressed to creditors owed money by the business, confirmed HRS Energy Tansterne had contacted RSM over the voluntary liquidation of the firm.
It is unknown at this stage what impact the expected liquidation will have on the plant, which pledged to convert 150,000 tonnes of waste wood every year into clean energy.
The letter sent to creditors from RSM said: “The directors of the company have instructed RSM to assist in convening a meeting with members of the company, with a view to placing the company into creditors’ voluntary liquidation.
“In accordance with insolvency legislation, the company’s directors are seeking the creditors’ decision on the nomination of liquidators…
“All creditors, individual and corporate, are requested to send us their proof.”
The 22MW biomass plant, located east of Hull, covers a 12-acre site.
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Work on the plant started back in March 2017. Once operational, it was expected to operate 24 hours a day, seven days a week.
The biomass plant laid out plans to burn 150,000 tonnes of waste wood per year at full capacity.
A supplier who has worked on the biomass plant during its construction spoke to Hull Live about the news.
The man, who did not want to be named, said: “I think there has been some doubt surrounding the plant which has been rumbling on for quite some time.
“I did some work at the plant, and sent an invoice to HRS Energy Tansterne during this summer, and received no reply.
“I chased that up around August time, and still heard nothing. Now I have received a letter which says the company is about to go into liquidation.
“I am not holding out much hope of getting the money I am owed to be honest. Luckily I have got lots of other work on the go, so it is not the end of the world for me.”
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The biomass plant was rewarded for its innovative design at the 2017 Humber Renewables Awards, when it picked up ‘Best Renewable Energy Project or Installation.’
However, two years on from those awards, the operator of the plant – HRS Energy Tansterne – looks set to enter liquidation.
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