Multifuel Energy Ltd (MEL) (multifuelenergy.com) — a joint venture between Scotland-based SSE and USA-based Wheelabrator Technologies — has signed a two-year power purchase agreement (PPA) with Smartest Energy for the output of the Ferrybridge Multifuel 1 project near Knottingley in West Yorkshire.

The power station will produce around 600GWhr of low-carbon electricity a year from processed municipal, commercial and industrial waste. It will handle around 570,000 tonnes of waste-derived fuel annually and produce enough low-carbon electricity to power around 160,000 homes. The PPA signed with Smartest Energy — one of the largest power purchase deals seen in the sector — is expected to be worth around £75 million over the course of the contract.

Tom Maillet, MEL’s director of engineering, said: “Signing this PPA is another step forward for the Ferrybridge Multifuel 1 facility. It will allow a new supply of low-carbon electricity for the national grid at the earliest opportunity.”

More than 500 jobs were created during the three-year construction phase of the plant, involving many local and regional companies. Currently, 46 people are employed full time at the facility, which is next to the existing Ferrybridge ‘C’ coal-fired power station. MEL has applied to build and operate a second Multifuel power station at the Ferrybridge site.