Gemma Power Systems (GPS) has signed a contract with East Texas Electric Cooperative (ETEC) to design and build a 49.9MW biomass-fired power plant in Texas, US.

The engineering, procurement and construction contract is worth $165m.

GPS has received limited consent to start critical planning and early engineering activities next year and is awaiting a finding of no-significant-impact approval from the Rural Utilities Service.

The project is estimated to be completed by December 2014.