Fund manager for renewable energy projects Glennmont Partners has purchased a 40MW biomass power project in the UK for £160m from ECO2 and Western Logs Group.
The Margam Green Energy Project to be developed in Port Talbot, Wales, has been acquired by the firm on behalf of its clean energy fund Glennmont Clean Energy Fund Europe II.
ECO2 will be responsible for development and management of the power facility, which will be fired by waste wood.
Construction of the plant will be carried out by Babcock Wilcox Volund and Interserve. The facility is likely to begin operations in March 2017.
Nearly 250,000t of recycled waste wood will be sourced, processed, and supplied annually to the facility by Stobart Energy.
According to a 14-year fuel supply agreement, Stobart Energy’s transportation unit will deliver 250 loads weekly to the Margam Green Energy Project.
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 two million tonnes of fuel per annum into the UK biomass market by 2017/18.
"We supply one million 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."