DLA Piper has advised Stobart Group Limited (Stobart) on the signing of a 14 year index-linked fuel supply agreement with Glenmont Partners in relation to a project to construct a 40MW waste wood-fuelled biomass plant to be constructed at Margam, South Wales.

Stobart Energy will supply 250,000 tonnes p.a. of recycled waste wood to Margam over 14 years and will also be responsible for transporting the waste wood material to the plant. The build period will be 24-26 months, with commissioning scheduled for early 2017 and operations due to commence in March 2017.

The firm also advised Stobart on the Widnes Biomass Project deal which closed in November.

The project is being funded by a mixture of debt from Deutsche Bank with the major equity stake being taken by Glennmont Partners with Eco2, the developer of the project, retaining a minority interest (TBC).

The DLA Piper team was led by partner Darren Walsh who was supported by associates Abigail Mathews and Anthony Santangeli

Darren Walsh said: "Stobart are leading the way in the UK biomass market and we are very pleased to be advising them as they continue to expand and develop such important projects for the countries energy supply."

Richard Butcher, CEO of Stobart Energy & Infrastructure, commented: "Stobart Group has a target to increase its current supply to the UK biomass market to 2m tonnes of fuel per annum by 2017/18. This agreement contributes significantly towards that growth plan. We'd like to thank the DLA Piper team once again for their support reaching financial close on a transaction that helps towards cementing our position as the leading UK supplier of biomass."