Renewable energy generator Blue-NG has appointed Land and Marine to build the first of two renewable power stations in London, in a contract worth £100m.

The first power plant in Beckton, East London, will go on site shortly. The Combined Heat and Power (CHP) plant in Beckton will be fuelled by sustainably grown and locally sourced liquid biomass (rapeseed oil).

This will generate enough electricity to power 50,000 homes and heat for district heating or local industry.

Blue-NG claims that the plant will be a new model of CHP, called Combined Heat and intelligent Power (CHiP). This will be located on gas pressure reduction stations owned by the National Grid.

Blue-NG claims that the Beckton plant will be the first of its kind in the world.

Heat from the engine will be used in the gas pre-heating process, which is a necessary part of the pressure reduction process.

The planning application for the second power plant, to be built in Southall, is still currently under consideration by Ealing Borough Council.

Depending on planning approval, Land and Marine could be on site in Southall later this year, with both plants due to be operational by the end of 2011.