Within the last three months, renewable energy company, Eco2 Ltd has sold two biomass plants totalling £320M.
Renewable energy company – Eco2 Ltd – has announced the sale of another of its development portfolio to investors in a deal worth £160m.
The sale marks the successful completion of a joint venture between Eco2 and the Western Logs Group. The Margam Green Energy Plant, located near Margam South Wales, will generate 40MW from the combustion of waste wood. The power station will be built by a consortium consisting of Babcock Wilcox Volund A/S and Interserve Construction Ltd. BW Volund will also operate the plant.
The project has been purchased by Glennmont Partners on behalf of its dedicated clean energy fund, Glennmont Clean Energy Fund Europe II. Further funding will be provided by Deutsche Bank AG, supported by Danish export credit agency Eksport Kredit Fonden.
CEO of Eco2, Dr David Williams, said:
“This is fifth of our biomass developments to be funded in the UK. It is the second project in South Wales and the second project that we have completed with the partners at Glennmont. We are delighted that the quality of our work and the calibre of our people encourages such repeat business. Eco2 continues to set the standard as the leading biomass developer in the UK and beyond.”
The project will be managed on behalf of its owners by Eco2 Management Services Ltd.
Wood for the project will be supplied by Stobart Biomass Products Ltd under a long term contract that will bring 250,000 tonnes of fuel to the plant from supply depots in the region.
Darren Williams, Eco2’s Commercial Director commented:
“Eco2’s operations business will now be managing over 1 million tonnes of straw and wood every year. We are proud to be entrusted with managing the construction and operation of our developments on behalf of their new owners. We look forward to ensuring that the Margam Green Energy Plant is a success for its new owners.”
Eco2 also collaborated with Western Logs Group on Wales’ first commercial-scale biomass plant in Port Talbot – the Western Wood Energy Plant – which received an award for building excellence in 2009. This 14MWe project burns forestry wood and clean wood processing residues in a state-of-the-art combustion plant. It has been one of the most reliable renewable energy plants in the UK.
Eco2 continues to develop biomass projects in the UK and overseas.