The 30MW plant will be constructed as part of a joint venture with Zerus, a part of AZCUBA group, at the Ciro Redondo sugar mill located 400kms from Havana.
Expected to commence electricity generation by 2015 the plant will contribute to increased power generation at all operating sugar mills and power areas with low supply.
The joint venture will initially 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, "I have a longstanding personal commitment to normalising commercial relations withCuba and I hope that this Joint Venture will encourage other British companies to take an interest in the country."