Sita has won the contract to supply recovered wood to a new £200m biomass combined heat and power plant in Scotland.
The waste management firm will supply RWE Npower’s 4909MW Markinch plant in Fife with more than 50% of its feedstock requirements.
The facility is currently under construction and is due to be commissioned later this year. It will provide steam and electricity to the neighbouring Tullis Russell paper mill.
Sita will supply the waste wood, much of which currently goes to landfill, from its existing recycling sites on Scotland and the north of England.
Sita said the deal could lead to £10m investment and 100 jobs.
Graham Mayes, chief operating officer at Sita, said: “We aim to put the resources that we receive from our customers to the best possible use, so using wood that would otherwise go to landfill to power a local paper mill and also generate electricity for the UK, is fantastic.
“End-of-life wood largely comprises manufactured wood that has been processed, such as MDF and chipboard.
“This is extremely difficult to recycle and is commonly disposed at landfill. Recovering this wood to generate energy at Markinch has massive environmental benefits and is a great example of the circular economy in action. Aside from replacing the need to burn fossil fuel, it also avoids CO2 and methane emissions that would be created if the wood was sent to landfill.”