National Grid will pay Orbit Energy, based in Raleigh, North Carolina, between 9.5 cents and 10 cents per kWh, which the utility forecasts will be at or below market prices. The deal is expected to provide power for about 2,300 homes, David Graves, a National Grid spokesman, tells Recharge.

It requires approval from the Rhode Island Public Utilities Commission.

Orbit says its planned $15m plant will convert 120 tons of food scraps a day into electricity that are now dumped at Rhode Island’s main landfill.