The biomass plant, which is expected to start operations by around mid-2017, will generate enough energy for about 82,000 homes.
Burmeister & Wain Scandinavian Contractor will own the plant in partnership with a Danish infrastructure fund managed by Copenhagen Infrastructure Partners.
The plant, which will be primarily fuelled using locally sourced straw, will enhance the electricity grid infrastructure helping Breckland Council in the development of the Snetterton Heath area.
The plant will reduce about 300,000 tons of CO2 emissions per year.
Contracts for surplus straw are already in place with local farmers, which will bring in an £11m annual investment to the agricultural economy in the East Anglia.
Eco2 chief executive David Williams said: "Today’s groundbreaking ceremony officially marks the beginning of the construction of the Snetterton Renewable Energy Plant.
"It is fantastic to see work commencing, and we look forward to fostering our relationships in the East Anglian agricultural community, giving local farmers a secured income for their surplus straw, and working in partnership to deliver a sustainable-scale straw-fired biomass plant."
Originally developed by Iceni Energy, the Snetterton plant secured approval from Breckland Council in July 2012.
Iceni Energy partnered with Eco2 in May 2013 to take the project forward to financial close.
Image: Ground breaking ceremony of Snetterton biomass plant. Photo: Courtesy of Eco2 Limited.
