A £75 million power purchase agreement (PPA) has been signed for the electricity generated from waste project in the UK.
Multifuel Energy Ltd.(MEL), a joint venture between SSE and US-based Wheelabrator Technologies Inc., has agreed the two-year deal with SmartestEnergy.
The £300 million Ferrybridge Multifuel 1 project is expected to start operating later this year and is located next to the existing Ferrybridge C power station in West Yorkshire.
It will process 570,000 of waste and will generate around 600GWh of low carbon electricity a year – enough to power 160,000 homes.
The deal is claimed to be one of the largest power purchases agreements seen in the sector.
Tom Maillet, Director of Engineering and Operations for MEL said: “Signing this Power Purchase Agreement is another step forward for the Ferrybridge Multifuel 1 facility and this will allow a new supply of low carbon electricity on the national grid at the earliest opportunity. The tender process was highly competitive and SmartestEnergy offered the best overall commercial package.”
More than 500 jobs were created during the construction phase three years ago, states the company.