The company has secured financing from Weichert Enterprise as well as from three banks, including Allied Irish Bank, Ulster Bank Ireland and Barclays Bank Ireland.
Expected to create 350 jobs during construction, the facility will use woodchip to generate renewable and sustainable energy.
The project will also include construction of a fuel processing plant.
The facility will be developed by construction group John Sisk & Son, and will benefit from the state’s Renewable energy feed-in-tariff (Refit) program.
Mayo Renewable Power chairman Gerald Crotty said: "This financing marks another important milestone in the construction of Mayo Renewable Power’s plant and facilities which will provide renewable, sustainable and innovative energy to Ireland’s electricity grid."
Work on the project will commence immediately with plans to commission the plant in mid-2017.
The company intends to procure significant amounts of biomass in Ireland to complement its supply chain from the US.
