A major renewable energy group has moved forward on plans to build a biomass plant at Londonderry Port.

Kedco plc last night announced it had signed an agreement with Londonderry Port & Harbour Commissioners, giving it the option to lease a 10-acre site within Londonderry Dock for the proposed construction of a biomass electricity and heat generating plant with a capacity of up to 25MW.

The proposed project site lies within a strategic area of the port that already contains the 400MW ESB Coolkeeragh gas-fired power plant and another biomass project which has received planning permission.

Kedco says it expects to sign a binding option agreement before the end of March, following which the planning process will start.

The company has also started the pre-planning consultation process for a 4MW extension to its Newry biomass project - this will bring the total capacity of the Newry project up to 8MW once all phases are fully constructed.