Clean energy fund manager Glennmont Partners has acquired a 40MW biomass power project in the UK for £160m.
The company acquired the Margam Green Energy Project from ECO2 and Western Logs Group on behalf of its clean energy fund, Glennmont Clean Energy Fund Europe II.
The facility will be constructed in Port Talbot, Wales and fired by waste wood. It was developed and will be managed by ECO2.
Babcock Wilcox Volund and Interserve will construct the Margam plant, which is expected to start operations in March 2017.
Stobart Energy will source, process and supply 250,000 tons per annum of recycled waste wood to the facility.
The company’s transport business will deliver 250 loads a week to Margam over the 14-year agreement.
Commenting on the fuel supply agreement, Stobart Energy & Infrastructure CEO Richard Butcher said: "This agreement secures an attractive supply contract for the Group and will contribute significantly to our target of supplying 2m tonnes of fuel per annum into the UK biomass market by 2017/18. We supply 1m tonnes per annum at present.
"Coupled with the recent successful financial closure on the Group’s Widnes Biomass Project, this agreement confirms we are firmly on track to achieve our strategic aims in this sector and reinforces our position as the number one supplier of biomass in the UK."