Stobart Group anticipates that it will hit its target of delivering 2 million tonnes a year of biomass to power stations around the country by the end of 2018.
In a trading update, the firm said Stobart Energy was managing costs and that profit per tonne was ahead of target.
While some power stations the company is contracted to supply have experienced commissioning delays, Stobart said the majority were now either “burning fuel or about to commence burn”.
Stobart outlined targets last year to handle 60% of the UK’s biomass fuel. It has long-term contracts to supply around 20 power stations with fuel from what it says is “predominantly recycled” wood.
Within the company’s rail and civil engineering division, the firm said there was “minimal” financial exposure to Carillion contracts.
The group’s share price climbed 3% on the update in early trading, but sits around 24% lower than its peak six months ago.
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