As per the agreement, Stobart will supply biomass fuel to the power plants, which are being invested by Greensphere. Following 18-month joint work, both companies have identified several existing and potential projects for possible investment by Greensphere-managed funds.
The agreement, which has not set minimum volume commitment currently, stipulates that individual supply contracts be signed with specific plants.
However, volumes are likely to grow in the next three years as plants are acquired and developed.
The agreement will allow Stobart to generate income from supplying fuel as well as generate revenues by providing logistic services and supporting each project through to commissioning.
Greensphere manages capital on behalf of institutional investors including the UK Green Investment Bank, which granted a fund management mandate to the company for waste and waste-to-energy investments in 2012.
Stobart CEO Andrew Tinkler said that Greensphere is its suitable partner in the expanding biomass market and it will continue to work with other plant developers.
