Under phase two, Concord Blue has awarded Lockheed Martin Energy a US$43m contract to proceed with all engineering, procurement and construction of a five megawatt plant with a planned completion date in 2017.

In 2014, the two companies announced plans to build the facility and have since successfully completed all planning, simulation, supplier logistics and preliminary design, clearing the way for the build to begin.

"The Herten bioenergy facility will provide real benefits to the local area while demonstrating the promising capabilities and international potential of our bioenergy technologies," said Mo Vargas, director of Bioenergy at Lockheed Martin Energy.

"We are proud to partner with Concord Blue to help change the way our world addresses the growing challenges of clean energy and waste management."

The bioenergy facility transforms forestry waste to power using Concord Blue’s Reformer technology, which converts waste to energy through a process called advanced gasification.

The technology can convert nearly any kind of organic waste into clean, sustainable energy.

Unlike other available processes that use hazardous incineration methods, Concord Blue’s patented solution converts waste material using heat transfer, which results in no harmful byproducts.

To create its power, the plant will process 50,000 tons of raw waste per year, significantly reducing the need for landfill use.