Helsinki, Finland-based Wartsila announced today that it secured an $11.1 million order for an engine-driven combined heat and power plant that will run on jatropha oil.

The company said the 9 megawatt plant would be the first in the world to produce both electricity and heat using jatropha oil as fuel.

"Jatropha oil is a liquid biofuel that has great potential since jatropha can also be harvested outside the world's rainforest areas, even near deserts," said Ronald Westerdijk, business development manager for Wartsila in the Benelux countries.

Wartsila said the turnkey plant would be located in an agricultural area in Merksplas, Belgium.

It will be owned by Greenpower, a joint venture between Thenergo, a Belgian developer of sustainable energy projects; four local agricultural companies; and a private investor.

Last month, Wartsila made a deal to supply and install two biomass plants for Scottish & Newcastle (LSE: SCTN), an Edinburgh, Scotland-based brewer (see Wartsila to install biomass plants for Scottish & Newcastle).

Those combined heat and power plants will be fueled by spent grain from Scottish & Newcastle's breweries as well as wood chips from local sources.

Wartsila said heat from the jatropha-powered plant headed for Belgium is expected to be used primarily for farming processes, such as in nearby greenhouses.

The company said the electricity would be sold to the grid.

The plant is scheduled to start commercial operations in February 2009.

Wartsila said it has signed a letter of intent with Greenpower for a 10-year operations and maintenance agreement for the project.