The agreement with London & Devonshire Trust subsidiary LDT (Plymouth Energy Park) Limited gives Kedco an option to lease a 4.5-acre site for an electricity and heat generating plant.

The site is in an energy park being developed by LDT, which has already secured a grid connection for a number of planned projects. Kedco expects to sign a binding option agreement before the end of the month so that it can begin the planning process.

The company is also in advanced discussions on heads of terms for the co-development of a biomass CHP project in Co Waterford, Ireland, with a minimum 10MW capacity. Agreements are again expected to be signed before the end of the month.

Kedco, which revealed the plans in a trading statement today, said it is eyeing a “similar plant to the Enfield biomass project” for both new projects.

Elsewhere, the company said it intends to complete the financing and begin construction of the 12MW Enfield project and the second stage of the 4MW Newry biomass plant, which is expected to be fully commissioned by December. It also aims to wrap up the planning process for a further 4MW extension to Newry and obtain planning permission for the 8MW Clay Cross biomass project.

Kedco said its overall development portfolio has risen from 70MW at the end of 2012 to 146.8MW, achieving the full-year target ahead of schedule, and it is “pleased with progress made across the company’s key projects over the past six months”.