Veolia has been awarded a €450 million deal to operate a wood-fuelled biomass power plant in Killala, Co Mayo.

The company said it secured a 15-year contract from Mayo Renewable Power to operate the new 42.5-megawatt heat and power plant, which will produce enough electricity to supply 68,000 homes.

In addition to operating and maintaining the power production plant and the adjacent fuel processing plant, Veolia will also be supplying the total biomass fuel requirement for the facility.

The facility will use similar technology to that applied at Veolia’s biomass facilities at Merritt and Fort St James in British Colombia, Canada, which are among the largest plants in North America.

The new facility is due to start operations in mid-2017. Full construction activity is to commence immediately. Construction group John Sisk & Son is to build the plant and the project will create up to 350 jobs at its peak. The generating station will employ 30 people once it is up and running.

Ireland is aiming to get at least 40 per cent of its power needs from renewables by 2020.

"This facility is Ireland's largest independent biomass power plant and for Veolia represents the largest of its kind under our management in Ireland and the UK," said Estelle Brachlianoff, Veolia's senior executive vice president for UK and Ireland.

Veolia has been operating in Ireland since 1990 and currently employs 500 staff across its three business activities in water, waste management and energy.

US-backed Mayo Renewable Power last week confirmed that it has secured finance for the project, which is expected to cost €180 million from its equity backer, US firm, Weichert Enterprise, along with loans from three banks, AIB, Ulster and Barclays.