LONDON (Reuters) - British freight company Stobart Group Ltd has 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 said it expected to see 30 million pounds ($44.96 million) per annum in transport revenues within three years from the venture, while the transport contract is expected to deliver pre-tax profit of 19.25 million pounds over five years.
"This investment and transport contract together are a strategic building block for the Stobart Group on many levels," Stobart Group CEO Andrew Tinkler said in a statement.
Shares of the company were up 2 percent to 135.9 pence by 0830 GMT.
(Reporting by Neil Maidment; Editing by Rosalba O"Brien)
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