St. Petersburg, Fla.-based Progress Energy Florida said today it signed another contract with Atlanta's Biomass Gas & Electric to purchase electricity from a second waste-wood biomass plant planned for Florida.

Progress Energy Florida is a subsidiary of Raleigh, N.C.-based Progress Energy [1] (NYSE: PGN [2]).

The new plant, expected to be built in north or central Florida, will use yard trimmings, tree bark and wood knots from paper mills to create electricity.

"Clean, renewable energy sources, such as this one, play a vital role in our balanced approach to managing Florida's growing energy needs," said Jeff Lyash, president and CEO of Progress Energy Florida.

"This partnership continues our long history of supporting innovative technologies and promoting cost-effective, cleaner energy sources."

The 75 megawatt facility, which could generate enough electricity to power 46,000 homes, will be identical to Biomass Gas & Electric's waste-wood plant announced in July.

Progress Energy Florida agreed to buy the output of that plant as well. Both facilities will use gasification to create electricity.

Commercial operation for the second plant is expected to begin in June 2011, about six months after the first waste-wood plant.

Biomass Gas & Electric has four biomass power plants planned for construction in the next four years.