Spain’s Iberdrola has reportedly signed a contract with petrochemical company Dynasol to build a 56 MW cogeneration power plant in the northeastern Mexican state of Tamaulipas.

The project will also deliver 38 tonnes of steam per hour and will require an investment of some 1.3 billion pesos (€76 million), Iberdrola said.

Dynasol produces specialized plastics at its Tamaulipas site.

The planned investment is apparently part of an Iberdrola growth plan for the Mexican market, where some $5bn in energy investment is planned over the coming years.

The CEO of the company in Mexico, Enrique Alba, was quoted as saying: ‘For us, cogeneration which will serve Dynasol is included in a proposal that gives value to our industrial partners and, undoubtedly enhance their competitiveness by providing a reliable and sustainable supply of electricity and steam in the long term’.

In Mexico, Iberdrola is building two new CCGT plants and two cogeneration installations, as well as two additional wind farms for a total of nearly 900 MW and investments close to €1bn.