UK-based power producer Revonergy has signed a memorandum of understanding with the Ondo State Government to build a 14 MW power plant.

The waste-to-energy plant will be fuelled by wood waste and sawdust from the local timber industry.

The company plans on supplying power directly to the sawmills, while selling the surplus to the national grid. The arrangement should be a relief to Ondo State's timber industry as it largely depends on expensive generators because of power shortages. Wood waste and sawdust, normally merely dumped around the sawmills, will also be utilised efficiently.

According to Revonergy's website it is a developer of renewable energy power plants in emerging markets. The company also has a strong focus on creating employment, sustainable infrastructure and a better standard of living for local communities.

Revonergy CEO, Ravi Daswani said they are currently in talks with various financial institutions to finance the project.

It is expected that reliable power supply will lower the timber industry's production costs, boost employment, increase sales volumes and attract fresh investment.