The plant will use woodchip from sawmills and forestry

Eco2 has signed a multimillion-pound finance deal for its Western Wood Energy biomass plant.

The money will also fund other projects for the Cardiff-based company, including a windfarm which is already being built in northern Scotland.

David Williams, managing director, called the deal a "really positive step for us".

He added: "It secures funding for the projects as well as our long-term involvement in them.

"It will also allow Eco2 to continue developing successful projects throughout the UK. We're looking forward to working with our new investment partners."

Energy

The company has linked up with the Western Log Group to develop the 13.8MW energy plant at Longlands Lane in Margam.

Planning permission has been granted and it will create 20 jobs when it is built.

The biomass plant will use sawmill and forestry woodchip and provide power for the equivalent of 31,000 homes.

Meanwhile, Scottish Power has signed a 15-year power purchase agreement for the output from the company's Dummuie wind farm at Huntly, Aberdeenshire which is already being built.

The finance has been secured with renewable energy investor Englefield Capital, including the backing of a Japanese bank.