Under the 15-year index-linked contract, Stobart Energy will supply 270,000 tonnes of waste wood anually.
Danish power plant specialist Burmeister & Wain Scandinavian Contractor (BWSC) is developing the renewable power generating facility. Construction is expected to begin later this year.
Stobart will start supplying fuel to the facility in March 2017.
The firm will construct a £7.5m processing facility beside the 40MW biomass power station to carry on on-site processing of the fuel to be supplied to the plant. Stobart Rail will be responsible for the works.
Stobart Energy & Infrastructure CEO Richard Butcher said: "The Group has now secured the necessary contracts to achieve its’ strategic target of supplying 2 million tonnes per annum of fuel to the biomass market by 2017/18.
"Stobart Group also continues to put in place the necessary infrastructure and processing capabilities to support these supply contracts."
Financial closure has been completed for the power project, which is expected to involve an investment of £175m.
Once operational, the plant is likely to meet the power requirements of 70,000 households.
