Biomass firm CoGen is to develop a 21.5MW project at the renamed Protos energy site in Cheshire.
The 126-acre Protos site, formerly known as Ince Park, will be developed by owner Peel Environmental as a hub for energy industries.
CoGen’s £100m Ince Bio Power plant will use an advanced conversion technology process to produce enough electricity to power 40,000 homes a year from 170,000 tonnes of waste wood supplied under a long-term contract by Ince Park Renewables.
Npower will buy the energy from the facility under a long-term agreement after generation begins in 2017.
The project has been financed by the Bioenergy Infrastructure Group, which comprises Infracapital, Aurium Capital Markets, Foresight Group and Helios. Construction is by MBV Energy, a joint venture between MWH Treatment and Black & Veatch, with Outotec Energy Products as the main technology subcontractor.
CoGen chief executive Ian Brooking said: “It is great to get a complex project of this significant size through financial close. CoGen has a significant pipeline of projects coming through.”
Peel Environmental has received a loan from the North West Evergreen Fund for construction of an access road and other infrastructure to unlock further development.
Managing director Myles Kitcher said: “These first deals show investor confidence in the region, and demonstrate how the private and public sector can unite to unlock forward-looking development and drive a northern resurgence.
“Such significant investment will help us tp deliver a self-sustaining hub of businesses at Protos, centred on energy and innovation.”