Renewi has secured a 20-year deal to supply refuse-derived fuel (RDF) to Ferrybridge Multifuel 2 in Yorkshire.
The company – formed this year by a merger of Shanks and Van Gansewinkel – will provide 50,000 tonnes of RDF a year to the facility under construction near Pontefract.
Renewi will supply the fuel mainly from facilities in Wakefield, Barnsley, Doncaster, Rotherham and Derby.
Ferrybridge Multifuel 2 is being built by Hitachi Zosen Inova for power firm SSE. It is due to start full operation by summer 2019, when the contract with Renewi begins.
In total, FM2 will produce about 70MW of electricity, enough to power some 170,000 homes.
Renewi municipal division managing director James Priestley said: “One of our key recovery initiatives in the municipal division is to secure stable long-term outlets for RDF, so we are delighted to have signed this important contract.
“It provides a long-term outlet for a number of our PFI contracts, which were previously exposed to market volatility. We look forward to the completion of FM2 and to supplying our high-quality fuel to generate green energy.”
Renewi last month reported a loss in its municipal division.