Jan 31, 2015. /Lesprom Network/. The Board of Stobart Group Limited signs a 14-year index-linked fuel supply agreement in relation to a project to construct a 40MWe waste wood-fuelled biomass plant near Margam, South Wales, which has successfully achieved financial close, the company said in the press release received by Lesprom Network.

The fuel supply agreement is the largest supply contract by volume entered into by the Group.

Margam is scheduled to commence operations in March 2017 and will generate revenue for the Group's Energy Division.

Stobart Energy will source, process and supply 250,000 tonnes p.a. of recycled waste wood to Margam over 14 years equating to 3.5m tonnes over the life of the agreement (equating to a total contract value in excess of GBP 110 million).

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. We supply 1m tonnes per annum at present.

Coupled with the recent successful financial closure on the Group's Widnes Biomass Project, 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"