The approval marks a step ahead in the project, which will provide 20-25 jobs in the Dougherty County, reports WFXL FOX 31.
The sub-lease is for 20 years following completion of construction of the biomass facility.
The biomass plant is expected to be completed by 2017.
PDA chairman Jeff Sinyard said: "We’re excited this project continues to move forward in a positive direction."
Sinyard said the company would require two months before finalizing things for the construction of the biomass plant.