Under a power purchase agreement, Bord Gais Eireann will buy the electricity generated by the biomass plant.
The company now plans to move towards the completion of the next 2MW phase of the project. Civil and on-site works of the phase have already been completed.
Kedco has paid a deposit to secure the expansion of the grid infrastructure for the project and the next phase is likely to come online in the fourth quarter of 2013.
Once fully operational, the Newry plant would be able to provide clean electricity to over 7,000 homes in the region.
Other asset of Kedco is the 12MW Enfield Biomass Project located in Enfield, London. The project has permits to convert 60,000 metric tons per annum of waste wood.
Kedco CEO Gerry Madden said, "Biomass electricity and heat producing technologies are among the most incentivized in the UK, and this support further underpins Kedco’s business model."
