To be built in Templeborough, Rotherham, the plant will be fired with locally sourced waste wood.
The plant will generate enough energy for 70,000 homes and reduce 360 tonnes of carbon dioxide emissions per year.
Work on the plant is expected to commence shortly, with planned completion in the second quarter of 2017.
Stobart Group has signed a 20-year biomass supply contract for the facility. Interserve’s portion of the project is worth £50m.
Interserve commercial director Andy Jarman said: "The waste sector is a key growth area for Interserve.
"We recognise that projects of this type are highly technical and challenging, requiring key expertise to construct, operate and maintain. This is why we have formed a strategic partnership with Babcock & Wilcox Vølund who will operate and maintain the Brite plant from 2017."
