Under the 15-year contract, Veolia Energy Services will operate and maintain the power plant and the adjacent fuel processing plant.
The company will also supply biomass fuel for the facility, which is expected to generate electricity to serve around 68,000 homes.
Expected to create 350 jobs during construction, the plant is scheduled to commence operations in mid-2017. It will benefit from the state’s renewable energy feed-in-tariff (Refit) program.
Veolia UK and Ireland senior executive vice-president Estelle Brachlianoff: "This project marks a significant step on Ireland’s path towards developing sustainable energy solutions.
"We are looking forward to collaborating with our project partners to deliver best in class energy management for the successful delivery of this milestone project."
The project is backed by Weichert Enterprise, Allied Irish Bank, Ulster Bank Ireland and Barclays Bank Ireland.
Ireland intends to generate 40% of its power requirement from renewable sources by 2020.
