Developed by Estover Energy, the new renewable energy facility will cost around GBP138m.
Estover Energy founder and co-CEO Marcus Whately said: "Nearly £140m invested in the Cramlington CHP plant is fantastic news for the North East and for Estover. It means more jobs in forestry, and a secure energy supply for industry.
"Twice the size of our first plant in Scotland, it shows Estover is becoming a real force in these long-term energy and infrastructure projects.
A consortium comprising Burmeister & Wain Scandinavian Contractors (BWSC) and Burmeister & Wain Energy (BWE) will build the CHP plant.
BWSC will operate the facility under a 12-year operations & maintenance contract.
The plant is expected to generate 213GWh of renewable electricity annually, most of which will be sold to Statkraft, under a long-term power purchase agreement.
Of the total committed investment, GIB will provide GBP21m and the remainder GBP27m will be provided by John Laing.
John Laing renewable energy managing director Ross McArthur said: "Our investment in Cramlington biomass CHP plant builds on the success of our partnership with Estover and GIB established on Speyside Renewable Energy plant.
"This exciting new project demonstrated the valuable contribution biomass can make to delivering renewable heat in the UK. Cramlington adds further depth to John Laing’s growing portfolio of renewable energy assets in the UK and internationally."
Barclays will provide the remainder of the funding for the project as debt, 60% of which will be guaranteed by the Danish export credit agency EKF.
In March this year, GIB partnered with Irish utility Electricity Supply Board (ESB) to jointly invest £70m in a new £190m renewable power facility at the Port of Tilbury, Essex.
