As part of a 15-year agreement with Drax, Associated British Ports (ABP) will handle up to 1 million tonnes of biomass per year in Hull.
The £16m Hull rail load-out facility, constructed by Spencer Group, transport biomass to Drax Power Station at Selby.
The facility will handle biomass imported by sea from the North America and Europe in the form of wood pellets.
The biomass is then stored in warehouses before being delivered by truck to the new facility and unloaded into feeders which take it to a 250-metre (820 ft) conveyor, carrying it to the top of the silo, which can store up to 1,800 tonnes of wood pellets.
This is part of a programme that will see Drax transform into a predominantly biomass-fuelled generator.
ABP director Humber John Fitzgerald said: "The opening of this specialist facility is further demonstration of ABP’s infrastructure innovation. It underpins the continuing importance of our estuary in powering the UK.
"The Humber ports have always been integral to the UK’s energy supply and as electricity generation moves to a low-carbon base, we too are investing in facilities to service this transformation. Whether it’s biomass at Hull or Immingham, or offshore wind at Green Port Hull, the Humber ports will continue to be at the centre of this vital industry."
Drax chief executive Dorothy Thompson CBE said that the company is looking forward to a productive partnership with ABP.
"The Port of Hull has always played an important role in the history of our company and I am delighted to be standing here today to mark the opening of this terminal and the start of a new chapter."
