Stobart seals £110m biomass power plant deal

21st Nov 2014 07:17

Transport and energy company Stobart Group has sealed a deal to build a £110m combined heat and power (CHP) biomass plant at its site in Widnes in north-west England as well as a 16-year index-linked fuel supply agreement.Stobart said the CHP plant is due to start operating in December 2016 and will generate returns for its complementary energy, infrastructure and rail civil engineering divisions.Stobart Infrastructure is investing £7.5m in equity for a 40% interest in the CHP plant's holding company, Mersey Bioenergy.The Green Investment Bank will provide 49% of the equity and Burmeister & Wain Scandinavian Contractor A/S, the project's engineering, procurement and construction contractor, will take an 11% stake.Stobart Energy will supply 146,000 tonnes a year of recycled waste wood to the plant over 16 years with an initial annual revenue of £5.7m. The volumes represent 24% of the increase required to achieve Stobart Energy's fuel supply target of 2m tonnes a year by 2017/18.Stobart Energy chief Richard Butcher said: ""This agreement secures an attractive energy investment for the group."