Stobart Group has reached financial close on a £110m project to construct a combined heat and power biomass plant at its site in Widnes.
Stobart Infrastructure is making an equity investment of £7.5m for a 40% interest in the plant's holding company, Mersey Bioenergy. The Green Investment Bank will provide 49% of the equity and Burmeister & Wain Scandinavian Contractor, the project's engineering, procurement and construction contractor, will take an 11% stake.
BWSC will manage the facility under a long-term operation and maintenance contract. Stobart Energy will supply the plant with 146,000 tonnes of waste wood material each year over a 16-year contractual period.
The plant will be built on four acres of Stobart Infrastructure's 90-acre logistics hub in Widnes. The site will be sold by Stobart Infrastructure to MBL for £2m. Stobart Rail will construct the dryer facility, procure the equipment and install it.
Stobart was advised by DLA Piper.