Biomass supplier's technology and transport investments will bolster growth plans
INVESTMENT: Neil Holland, of biomass business Y-Pellets, which has invested in a new fleet of trucks and IT systems to continue growth in the UK.
By Hull Daily Mail | Posted: 13 Dec 2017
AN EAST Yorkshire biomass supplier is pushing for growth with significant investment in technology and a new fleet of specially designed vehicles to show it is “best in class”.
Y-Pellets, based in Goole, is a national leader for the distribution and supply of biomass wood pellets and is now looking to support further growth at its busiest time of year.
The firm says it is upgrading its delivery trucks at a time when some suppliers sub-contracting deliveries are failing to meet trading standard regulations.
The firm has invested in new six and eight-wheel trucks, as well as in IT systems to transmit the data from each delivery to the customer’s head office and then onto the customer.
Neil Holland, managing director of Y-Pellets, says the firm wants to continue growth in the region over the next two or three years and believes this investment can facilitate this development.
He said: “We are obviously really happy to be located in the region and want to continue growth over the next two or three years, continuing our development in the area.
“One of the things you need to grow a business is have up-front investment. So this is what we’ve done by putting money into specialised equipment.
“We started with planning last November and the operations have been getting improvements from late July. We are putting the investment in because we want to show that we are best in class.
“We have seen growth in wood pellet usage over the past few years, but it has been around in the UK since 2005. Renewable heat incentives were introduced and then the market significantly grew.”
The company expects to deliver thousands of tonnes of sustainably sourced EN Plus A1 wood pellets to private homeowners and businesses, including local authorities, hotels, care homes, manufacturers and schools, especially across East Yorkshire and the Humber, the Midlands, the North East and the North West, over the forthcoming months.
The investment will see Y-Pellets further extend its distribution capability to southern areas of England and north of the border into Scotland, strengthening its position in the growing UK biomass fuel industry.
The managing director said heating incentives brought in by the Government in 2012 caused a significant increase and Y Pellets has benefited from growth in the market ever since.
Mr Holland said: “There is now much more of an established market. There are plenty of firms now that started from different places, selling wood chip and things like that, and saw the opportunity to diversify and move into the biomass market.
“We are coming into things with a very customer-focused point of view, and I worked in utilities, so the new opportunities for renewable energy was very interesting.
“We range from small domestic customers to much bigger places, such as care homes and schools. Any business can benefit from using greener energy sources like biomass.
“A variety of different incentives were brought including biomass and heat pumps. They are more expensive than normal to introduce, so the Government brought in an incentive for people to use them, paying people for the usage.
“The incentives grew quickly, but it has started to stabilise more and the market is in quite a steady position. It makes it easier for us to strategise and was, therefore, a suitable time to invest.”
The firms says it also plans to increase driver numbers as a result of investment, as the company expands its services further across the UK.