The 30MW plant will be constructed at the Ciro Redondo sugar mill in the province of Ciego de Ávila near Havana.
Electricity generation at the plant is projected to begin by 2015 and contribute to increased power generation at all operating sugar mills and power areas with low supply.
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Initially, the joint venture will develop a pilot plant at Ciro Redondo and later construct four other plants depending on the island´s sugar plantations.
Bagasse waste from the sugar mill will fuel the power plant during the harvest season and an invasive woody weed marabu for the rest of the year.
Havana Energy chairman and former UK Energy Minister Brian Wilson said, "Ihave a longstanding personal commitment to normalising commercial relations withCuba and I hope that this Joint Venture will encourage other British companies totake an interest in the country."
Havana Energy CEO Andrew Macdonald added," Generating lowcarbon energy -saving on diesel – , producing more sugar, clearing marabu from fertile land, employing people….it provides multiple value and for all concerned is aprivilege to work on."
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By GlobalDataZerus president Camilo Hernandez Gonzales commented, "The agreement we have completed is a complement to the national investment efforts and the process of recuperating the sugar cane production in our country."