Waste management company Veolia has won a €350 million (£224m) contract to operate a biomass power plant in Ireland.

Its subsidiary Veolia Energy Services will run the 42.5MW wood-fuelled facility in Killala, which will generate enough electricity to power 68,000 homes.

Veolia will also supply the total biomass fuel requirement for the facility for 15 years under the deal awarded by Mayo Renewable Power.

Estelle Brachlianoff, Senior Executive Vice President, Veolia UK and Ireland said: “This project marks a significant step on Ireland’s path towards developing sustainable energy solutions.”

The plant is expected to start commercial operation in mid-2017.