TRANSPORT and energy group Stobart has announced a £110 million deal to build a combined heat and power biomass plant at its site in Widnes.
The plant will be built on four acres of Stobart Infrastructure's 90-acre logistics hub.
It is due to start operating in December, 2016.
Stobart Energy will supply the plant with 146,000 tons of waste wood material in a 16-year fuel supply agreement.
This is set to provide revenue of £106m to the group, while Stobart Rail will construct the dryer facility, procure the equipment and instal it.
The plant will generate 20 megawatts of electricity for export to the national grid.
Stobart Infrastructure is making a £7.5m equity investment for a 40 per cent stake in the plant's holding company, Mersey Bioenergy Limited (MBL).
The site will be sold by Stobart Infrastructure to MBL for £2m.
The Green Investment Bank will provide 49 per cent of the equity and Burmeister & Wain Scandinavian Contractor (BWSC), the project's engineering, procurement and construction contractor, will take an 11 per cent stake.
BWSC will manage the facility under a long-term operation and maintenance contract.
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