Secured through bond program, the funding will be used to build a power generation plant, which will feature Siemens-built Wellons steam boiler.
The facility will primarily use woodchips, cornstover, sunflower and wheat straw to generate electricity.
Planned to be commissioned by November 2016, the facility marks the 13th biomass plant to be built in the country.
Ukraine currently has six biomass plants and seven biogas anaerobic digester systems.
DNC Energy president David Neisingh said: "Our new facility is a unique source of renewable energy in Ukraine and we anticipate that this landmark project will add substantially to the local economy, support sustainable waste management practices and improve the health of the local environment.
"The rising cost of energy makes it crucial to produce electricity from alternative sources and is also an important factor in our project’s implementation."
Power generated from the new facility will be sold using the green tariff. The green tariff law aims to support power sector investment to replace the current aging power facilities in country.
DNC is negotiating to buy eight sites for future expansion with plans to operate 200MW power projects by 2020.
