The project is expected to be the largest waste wood renewable energy plant in the north west of England upon commencing operations, which is scheduled in December 2016.
Stobart Energy & Infrastructure CEO Richard Butcher said: "This agreement secures an attractive energy investment for the Group and will contribute 24% of the growth we need to achieve our target of supplying 2m tonnes of fuel per annum into the UK biomass market by 2017/18 from 1m tonnes per annum at present.
"This CHP Plant will generate a strong return on investment in the plant’s equity as well as providing the Group with a 16 year biomass fuel supply contract, a long-term wood drying income stream and valuable engineering revenue on the development."
The plant will be provided with 146,000t of waste food material annually over a 16-year period by Stobart Energy and will operate an adjacent wood drying facility using the heat from the 7.8MWth CHP plant.
The drier facility can dry 140,000t a year of virgin wood material and produce an output of 90,000t for sale into the small scale wood chip and pellet market.
Stobart Infrastructure will own a 40% stake in the new plant while the UK Green Investment Bank will own a 49% interest.
Burmeister & Wain Scandinavian Contractor, the project’s engineering, procurement and construction contractor, will hold the remaining 11% stake.
