Being developed by Estover Energy, the project will power more than 20,000 homes and will provide green energy for Scotland’s whisky distilleries, Macallan.
The overall funding required for the biomass power project is £74m, of which the balance will be provided by John Laing and the UK Green Investment Bank.
John Laing will invest £13.5m while £13m will come from UK Green Investment.
Expected to create 123 jobs, the biomass project will be supported by the UK Guarantees scheme.
According to this scheme, the UK government acts as a loan guarantor to major infrastructure investments across energy, transport, communications, waste and housing.
The new biomass combined heat and power (CHP) plant will generate 87.4GWh per annum of renewable electricity and 76.8GWh per annum of renewable heat.
In addition to reducing the cost of energy at Macallan distillery, the CHP facility will enable the distillery to reduce its greenhouse gas emissions by over 17,500t CO2, which is equivalent to taking almost 8,000 cars off the road.
UK Business Secretary Vince Cable said: "This investment in Speyside will not only help secure jobs, boost a vital industry and support the local supply chain but also generate renewable energy for homes in Scotland."
Treasury Chief Secretary Danny Alexander said: "It will power thousands of homes with clean energy, and also support the whisky industry, a cornerstone of our economy, which brings in billions for Scotland and employs over 10,000 people.
"Today, over £1 billion of infrastructure projects have now been brought forward as a result of the UK guarantees scheme and £36 billion worth of projects are pre qualified."
The biomass farm is expected to be commissioned by 2016.
