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Stobart joins forces in biomass venture

BRITISH logistics company Stobart Group yesterday announced a venture into the UK renewable energy market with a deal to source and supply biomass fuel.

Stobart said it has set up a joint venture with wood-related biomass supplier A.W. Jenkinson to supply biomass fuel, with a linked transportation contract for Eddie Stobart, whose lorries are a familar sight on British roads.

The company expects £30m per annum in transport revenues within three years from the venture, while the transport contract is expected to deliver pre-tax profit of £19.25m over five years.

“This investment and transport contract together are a strategic building block,” Stobart Group chief executive officer Andrew Tinkler said.