Kedco Plc, an Irish developer, agreed to build a biomass-fed power station in southwest England after the U.K. guaranteed electricity prices from clean-energy plants.
Kedco will construct the heat and power plant for property developer London & Devonshire Trust Ltd., the Cork-based company said today in a statement. The facility will have a capacity of as much as 10 megawatts.
The government, seeking to spur expansion of clean energy to meet demand while cutting emissions, published proposals last week for guaranteed electricity prices. New biomass heat and power plants may receive 120 pounds ($182) a megawatt-hour, according to the plans under the Electricity Market Reform.
Kedco, whose plant would be built in an energy park being developed by London & Devonshire in Plymouth, expects to sign a binding contract with the trust this month. The park already has a grid connection, it said.
Kedco is also in “advanced” talks to build a similar facility in Ireland and expects to sign an agreement before the end of July, according to the statement.
The U.K. Department of Energy and Climate Change estimates that bioenergy plants that use feedstocks such as wood chips and organic waste may meet 8 percent to 11 percent of the nation’s primary energy demand by 2020. Bioenergy accounted for the largest share of renewable-power output at the end of the first quarter, reaching 34 percent, government data show.