The plant is being developed by MITIE Group’s Asset Management business in partnership with technology company O-Gen UK and the Una Group.
The biomass plant will convert 40,000 tonnes of waste wood into renewable heat and power each year.
The companies have formed a new energy services company known as O-Gen Plymtrek, which is exploring plans to supply energy from the plant to a local business.
The plant will generate around 26,000 MWh of electricity a year as well as heat.
A spokesman for MITIE told letsrecycle.com that contracts for the waste wood were still being finalised.
The plant has secured a grant of £525,000 from the South West Regional Development Agency and debt financing from Close Bank.
MITIE’s Asset Management business will operate and maintain the plant, which uses technology provided by O-Gen UK, during a ten year contract.
