Work on a 22MW biomass plant near Hull will start shortly and is due to be completed in just over a year.
The contract to build the plant was initially placed with HRS Energy in September 2015, and planning consent was granted in January.
HRS says the scheme will bring £35m of investment to the local area and secure the long-term future of 100 highly skilled manufacturing jobs and 80 additional jobs for local suppliers.
The plant will use HRS’s combustion, heat recovery and power module technology which will be manufactured in the city by CF Struthers.
HRS uses a fluidised bed combustion and heat recovery system to burn biomass. The heat recovery technology can also be retrofitted to gas compressor plants and peaking gas turbines to recover energy.
The plant will provide enough clean energy to power 11,000 homes.
Mark Wickham, HRS managing director, said: “Our pioneering technology is the best available for this development, delivering cost and efficiency benefits while producing low levels of emissions.
“Thanks to our efficient standardised modular design, the plant will be operational and generating electricity for homes and businesses in just over a year.”
Karl Turner, MP for Hull East, said: “These highly skilled manufacturing jobs are further good news for the area, and build on Hull’s reputation as a world leader in providing clean energy.”