Located on an 85-acre site in Montgomery, the Panda Patriot facility is expected to be fully operational in the middle of 2016.
The Patriot project, which was originally developed by Moxie Energy, will be built by Gemma Power Systems, via a joint venture with the Lane Construction.
The power plant is expected to contribute an estimated $5.85bn to the local economy within the first 10 years of operation.
Pennsylvania Governor Tom Corbett said: "This is another project that shows how our ‘all of the above and below’ energy strategy is putting Pennsylvania at the forefront of the American energy revolution.
"By responsibly harvesting our abundant energy resources, we are creating family-sustaining jobs and are reinvigorating local communities all over Pennsylvania."
The Panda Patriot facility utilises emissions-control technology and features Siemens H-class gas turbines.
After completion, the natural gas-fuelled generating station will power up to 1 million homes in Pennsylvania.
The project is expected to create new long-term market for local gas producers and royalty owners.
Image: Panda Power Funds 829-MW Patriot generating station. Photo: Courtesy of Business Wire.
