Glennmont Partners has completed the purchase of a 40-megawatt biomass power plant from ECO2 Ltd. in a GBP 160-million (US$121 million) deal.
The Margam Green Energy Project in Port Talbot, Wales is developed by ECO2 Ltd. and Western Logs Group. The purchase and further construction of the Margam Green Energy Project is being supported by debt arranged by Deutsche Bank with the support of Eksport Kredit Fonden, the export credit agency of Denmark.
The completion of the deal marks the inclusion of the first biomass generation in Glennmont Clean Energy Fund Europe II. Fuel for the plant will be sourced from the waste wood market and will be supplied by Stobart Biomass Products Ltd under a long-term, indexed-linked fuel supply contract.
The plant will be managed by ECO2. The construction contract has been placed with a consortium consisting of Babcock Wilcox Volund, who will also operate the plant, and Interserve.