The facility was the only biomass scheme selected under the third round of the South African government’s Renewable Energy Procurement Programme and construction is expected to kick off in July 2014.
The $100m plant will be sited in Mkuze, in the north-east of the nation, and Building Energy said “local components” would account for some 40% of the project value.
The facility will be fuelled by sugar cane tops and leaves and is slated to go live in 2016.
“We are very satisfied with this new assignment in South Africa,” said Building Energy chief executive Fabrizio Zago.
Building Energy is working with Charl Senekal Suiker Trust, South Africa’s main private sugar producer.
It will be a shareholder in the project with a number local investors including BE, CSST H1 Holdings and Mkuze Local Community Trust. Rand Merchant Bank will be the mandate lead arranger for project finance.