Glennmont Partners says that its clean energy fund, Glennmont Clean Energy Fund Europe II, has paid £160 million for the Margam Green Energy Project from ECO2 Ltd. and Western Logs Group.
The Margam project will see the construction of a new 40 MW biomass power plant in Port Talbot, Wales. The project will be the first biomass facility in Glennmont's Europe II fund, which is aiming to build a diversified European portfolio of clean energy investment.
The purchase and construction of the Margam project is being supported by debt arranged by Deutsche Bank with the support of Eksport Kredit Fonden, the export credit agency of Denmark.
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.
Glennmont's Europe II fund has already completed four deals in onshore wind and solar photovoltaics and owns assets in France, the UK and Portugal. In January Glennmont announced that it had selected Greensolver, an independent wind and solar farm asset manager, to actively manage a 25 MW wind portfolio in France.