Under the contract, Abengoa will construct the 15MW cogeneration plant for about $30m on a turnkey basis.

The company will carry out engineering, design and construction work on the plant under a lump sum contract for over 18 months.

Rentech Nitrogen will use a part of the electricity generated from the plant to power its fertilizer plant in Pasadena, Texas.

In addition, Rentech Nitrogen will sell excess power produced from the plant in the Texas electricity market.

The cogeneration plant will use surplus steam from Rentech Nitrogen’s sulfuric acid plant to power the generator.

US-based Rentech Nitrogen specializes in manufacturing nitrogen fertilizers for agricultural use.