OREANDA-NEWS. Five thousand homes and businesses in Herten, Germany, will soon benefit from a clean, renewable energy source as Lockheed Martin (NYSE: LMT) and Concord Blue begin phase two of a new power generation facility that will transform waste into energy.

Under phase two, Concord Blue has awarded Lockheed Martin Energy a $43 million contract to proceed with all engineering, procurement and construction of the 5 megawatt plant with a planned completion date in 2017.

In 2014, the two companies announced plans to build the facility and have since successfully completed all planning, simulation, supplier logistics and preliminary design, clearing the way for the build to begin.

“The Herten bioenergy facility will provide real benefits to the local area while demonstrating the promising capabilities and international potential of our bioenergy technologies,” said Mo Vargas, director of Bioenergy at Lockheed Martin Energy. “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.”

The bioenergy facility transforms forestry waste to power using Concord Blue’s Reformer® technology, which converts waste to energy through a process called advanced gasification. The technology can convert nearly any kind of organic waste into clean, sustainable energy. Unlike other available processes that use hazardous incineration methods, Concord Blue’s patented solution converts waste material using heat transfer, which results in no harmful byproducts.

The facility’s 5 megawatts of energy output is enough to power about 5,000 homes and businesses. To create its power, the plant will process 50,000 tons of raw waste per year, significantly reducing the need for landfill use.

“The construction of the Herten Project marks an important milestone for our partnership with Lockheed Martin. We continue to be extremely pleased with the quality of work and value they provide to this project and will provide for many projects to come,” said Charlie Thannhaeuser, Chairman and CEO of Concord Blue.

Teaming Agreement Extended

Additionally, Lockheed Martin and Concord Blue signed a modification to the existing teaming agreement established in 2013 to extend the partnership ten years though 2026, with options for further extension.

The agreement enables Lockheed Martin to serve as Concord Blue’s Engineering, Procurement and Construction (EPC) contractor for future bio energy conversion projects and to continue serving as the exclusive manufacturing provider of the Concord Blue Reformer.

Concord Blue’s unique technology benefits the environment, fulfilling all international, Environmental Protection Agency and European regulations for renewable energy and air emissions. Concord Blue operates globally, with offices in the United States, Germany and India.

Lockheed Martin Energy is a line of business within Lockheed Martin that delivers comprehensive solutions across the energy industry to include demand response solutions, energy efficiency, energy storage, nuclear systems, ocean energy technologies and bioenergy generation.

“Our bioenergy technology is a key element of our portfolio and has the potential to be a true game-changer for both the energy generation and waste management markets,” said Frank Armijo, vice president of Lockheed Martin Energy.