The £650m project, which is being backed by the UK Government’s Contract for Difference scheme, will be fuelled by wood pellets and chips from certified sustainable forestry sources in the US and Europe.

It has all major permits required for construction and operation. Macquarie Capital has started a debt raising process with financial close targeted for the fourth quarter of 2015.

The project is expected to create about 600 jobs during construction and sustain around 100 full-time jobs once operational.

Macquarie will be the lead equity sponsor for the project as well as financial advisor.

Mark Dooley of Macquarie said: "As one of the first renewable energy assets to be project financed under the new UK CfD regime and the largest dedicated biomass project to be built in the UK, the project presents some challenges but also a great opportunity for the finance market.

MGT Power CEO Ben Elsworth said: "Following the sanction by the European Commission of the Project’s CfD earlier this year, the involvement of Macquarie as an investor and adviser represents another major step forward in the process to finance the project with the aim of starting construction on site by early 2016 at the latest."