The German energy company said in a statement that the 75 megawatt facility would enable a reduction in carbon emissions of 36,000 tons per year, contributing to DS Smith's goal of cutting emissions by 30 percent by 2030.

E.ON will finance, build and operate the facility, with construction due to start this year and be completed by 2021. A spokesman said E.ON was investing 90 million euros ($102 million) in the project.

($1 = 0.8848 euros)

(Reporting by Emma Thomasson and Christoph Steitz; Editing by Elaine Hardcastle)