The new company will be a separate power division providing combined heat and power systems to generate electricity.
Both businesses will be guided by chairman Bob Talbot, who started the first company in the 1970s. He said: “We are delighted with the investment and look forward to carrying the restructured company forward in a way that preserves Talbott’s 30 year heritage and reputation for quality, British manufactured biomass energy systems.”
Managing director of the new division Chris Smith commented: “Together we will be looking to enhance both companies’ industry presence and expertise to remain a prominent force in the Biomass sector.”
Government backed renewable incentives proposed in the Heat and Energy Efficiency Strategy yesterday could boost further growth in the renewables market. But industry groups were concerned the proposals, which might only begin in 2012, were too vague and would take too long to take effect.
Commenting on the untapped potential of the renewables sector, industry group Renewable Energy Association director general Philip Wolfe said: “The economic crisis provides an additional case for accelerated action in this area; our members in the decentralised energy sector employ 10 people for every million pounds of turnover and you can probably double that when you add employment in their suppliers. Government has just committed £2.9 billion to the UK’s car makers – a similar sum in sustainable energy could therefore create about half a million jobs!”