As per the contract, Stobart will supply over 115,000 tons of recycled wood every year for nearly 15 years to fuel the combined heat and power (CHP) station, which has an estimated power generation capacity of 5.8MWe.

Stobart Group CEO Andrew Tinkler said that the company is witnessing growing demand for its range of products across the UK and added that the group is delighted to supply fuel to Evermore plant.

"Stobart Biomass has an extensive pipeline of opportunities. We look forward to helping plant developers and funders to bring those opportunities to fruition and growing our Biomass business," added Tinkler.

Meanwhile, the construction of CHP plant is scheduled to commence over the next few weeks, with operations expected to begin by the summer of 2015. The UK Waste Resources & Energy Fund (UKWREI) has invested nearly £80m for the development of the project.