French power technology giant Areva, Dutch engineering group Ballast Nedam and Finnish boiler supplier Metso will build and commission the plant in Delfzijl.

The recycled-wood fuelled plant will supply power to 120,000 households when it begins operations in 2013, says the consortium.

In a separate deal, Metso will convert a coal-fired boiler to biomass for Elektrocieplownia Bialystok in Bialystok, Poland, under a contract worth about €20m.