An energy firm based in Guernsey has signed an agreement to build and operate a waste-to-energy plant in Barbados.

Cahill Energy expects to invest up to $240 million (£144.9m) in the facility which could provide up to 25% of the island’s electricity needs while reducing the cost of energy.

The project – which could create up to 650 jobs – will have the capability of transforming 650 tonnes of solid waste every day into clean, renewable energy.

The Government of Barbados has set a target of replacing 29% of its oil-based electricity by renewable and alternative energy sources by 2029.

Energy Minister Darcy W. Boyce said: “This project will help Barbados significantly reach this target 10 years earlier than planned.”

The facility is scheduled for operation at the end of the second quarter of 2017.