Stobart Group has won a 14-year agreement worth up to £110m for a waste wood-fuelled biomass plant in South Wales.
The index-linked fuel supply is for a 40MWe facility in Margam, which is scheduled to start operations in March 2017.
Stobart Energy will source, process and supply 250,000 tonnes of recycled waste wood each year to Margam over 14 years, equating to 3.5 million tonnes over the life of the agreement.
The fuel supply agreement is the largest supply contract by volume entered into by the Warrington-headquartered group.
"This agreement secures an attractive supply contract for the group and will contribute significantly to our target of supplying two million tonnes of fuel per annum into the UK biomass market by 2017/18. We supply one million tonnes per annum at present," said Richard Butcher, chief executive Stobart Energy & Infrastructure.
"Coupled with the recent successful financial closure on the group's Widnes biomass project, this agreement confirms we are firmly on track to achieve our strategic aims in this sector and reinforces our position as the number one supplier of biomass in the UK."
Stobart Group is not involved in the financing of the project, which is being funded by equity from Glennmont Partners and project finance from a club of lenders. Eco2 is building the facility.