Veolia has been awarded a 15-year contract to operate a 6.5MWe biomass-fired combined heat and power station in Sheffield.
The Holbrook Community Renewable Energy Centre is being constructed on behalf of Equitix ESI, which selected Veolia as the operator for the contract.
The £30m plant has an approximate annual capacity of 55,000 tonnes of waste wood which is intended to be sourced from local suppliers.
It also has the capability to export renewable heat energy to Sheffield’s district heating scheme.
Under the contract, Veolia will be responsible for the operation and maintenance of the facility, including disposal of the ash and management of the biomass fuel.
The plant is due to start generating heat and power in spring 2017 and, once operational, will sell electricity to GDF Suez UK under a long-term power offtake agreement.
Pat Gilroy, Veolia chief operating officer, said: “This contract is a further step in our commitment to deliver sustainable energy that both reduces carbon emissions and recycles a resource that would be wasted.
“We are looking forward to working with our project partners to help deliver the UK’s renewable target.”
The project is co-funded with the Green Investment Bank which is putting £14.6m into the facility. Equitix will be contributing a similar amount of private capital from its Energy Efficiency Fund.