An investment by the UK Green Investment Bank (GIB) has been made to purchase and upgrade an operational biomass plant in Port Talbot, Wales.
Undertaken by its UK Green Sustainable Waste and Energy Investment (UKGSWEI) fund, which is managed by Greensphere Capital, it means that the GIB will own a minority stake in the plant.
Co-investment came from Signia Wealth Management and Stobart.
GIB chief executive Shaun Kingsbury said: “This investment will secure the long-term future of an important Welsh renewable energy plant and will improve its efficiency and sustainability.
“The Greensphere fund was set up, in part, to help support the UK’s waste wood biomass sector and its first acquisition of an operational asset is an important step.”
Operations since 2008, the Western Bio-Energy facility is capable of providing 14.7MW and was the first commercial-scale power station of its kind in Wales.
The investment will allow an upgrade of the plant including an increase in the use of Grade A waste wood as a fuel source to around 55 per cent and refurbishment of the plant.
Greensphere has negotiated a contract to provide feedstock for the lifetime of the plant with Stobart Biomass.