KINGSTON, Jamaica (AP) — A Guernsey-based company has signed an agreement with Barbados to build and operate a proposed waste-to-energy plant that could eventually provide as much as 25 percent of the Caribbean island's power.

Cahill Energy says it expects to invest $240 million in the facility planned for the central parish of St. Thomas. The plant is expected to create up to 650 jobs while providing the island with some energy security. Officials signed the agreement on Saturday.

In a company statement, Barbados Environment Minister Denis Lowe said the project would reduce the island's "massive oil import bill." Barbados has said it plans to replace 29 percent of its oil-based power with alternative and renewable energy by 2029.

Punishing electricity costs and a lack of energy security are major concerns in the Caribbean.