Will source and process 3.5m tonnes of recycled waste wood
Will source and process 3.5m tonnes of recycled waste wood over the length of the agreement
Stobart Group Limited, the Support Services and Infrastructure group, have announced the signing of a 14-year fuel supply agreement around the construction of a 40MWe wood-fuelled biomass plant near Margam, South Wales.
The fuel supply agreement is the largest supply contract by volume entered into by Stobart, who will source, process and supply 250,000 tonnes of recycled waste wood per year to Margam over the life of the contract – this equates to 3.5m tonnes and a total contract value in excess of £110m.
Richard Butcher, CEO Stobart Energy & Infrastructure commented: “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 […] 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”
Stobart Energy’s Transport business will also be responsible for transportation of the product delivering 250 loads each week to Margam over the 14-year agreement, generating additional revenue for the Energy Division.
Stobart Group is not involved in the financing of the project, which is being funded by equity from Glennmont Partners and project finance from a club of lenders.
