Lockheed Martin and Concord Blue have started Phase 2 in development of a facility that will convert waste into clean energy in Germany.
As part of Phase 2, Lockheed Martin Energy has secured a $43m contract from Concord Blue to carry out the engineering, procurement and construction (EPC) of the 5MW plant.
The plans to build the waste-to-energy facility were announced in 2014 and the companies have completed all planning, simulation, supplier logistics and preliminary design of the project.
Upon completion in 2017, the plant will convert nearly 50,000t of raw waste into power every year using Concord Blue's Reformer technology.
Waste will be converted to energy through a process called advanced gasification, which is claimed to be able to convert nearly any kind of organic matter into clean, sustainable energy.
Clean electricity generated at the plant will be enough for more than 5,000 homes and businesses.
Lockheed Martin Energy bioenergy director Mo Vargas said: "The Herten bioenergy facility will provide real benefits to the local area, while demonstrating the promising capabilities and international potential of our bioenergy technologies.
"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."
Lockheed has also signed a modification to the existing teaming agreement with Concord Blue to extend the partnership ten years through 2026, with options for further extensions.
Under the agreement, Lockheed will serve as Concord Blue's EPC contractor for future bioenergy conversion projects and continue serving as the exclusive manufacturing provider of the Concord Blue Reformer.