Located in Widmerpool, Nottingham the 6.55MWe biomass-fired combined heat and power station is designed to provide sustainable green electricity for over 10,000 homes and supply up to 4.5MWth of process heat for the adjacent sawmill operations.
The new plant will recycle around 52,000 tonnes of waste wood as a carbon neutral fuel and will annually save around 8,400 tonnes of CO2 emissions.
The agreement also covers water treatment, emission monitoring, and ash disposal for the new plant that is due to start generating renewable electricity and heat in spring 2017.
The Sherwood plant will use a traditional steam cycle for generating electricity though the combustion of life expired wastewood from local sources.