Equitix-managed fund Energy Savings Investments (ESI) will invest around £14.6m in the 6.5MW project. GIB is the main investor in ESI.
Equitix Energy Efficiency Fund (EEEF) raised £15m of private capital for the project.
The green energy plant will feature VAS Energy Systems International-built biomass boiler and flue gas cleaning systems.
Being developed by UYE (UK), the plant generates combined heat and power (CHP) to supply heat to more than 6,700 local homes and commercial properties while reducing CO2 emissions by approximately 12,700t annually.
Power generated from the project will be sold to GDF Suez UK under a long-term power off take agreement.
UYE (UK) director Stephen Brooks said: "We see that these local, community-scale energy generation projects are one of the ways to reduce carbon emissions, reduce grid losses and generate useable, sustainable and affordable heat for local communities.
"This project is the first in our proposed portfolio of similar developments."
Kantor Energy will serve as the engineering, procurement and construction (EPC) principal contractor while Veolia Energy Services will provide long-term operations and maintenance services. Turboden will supply clean electricity generation equipment.
The project is expected to create 60 jobs during construction phase and 15 during its operations, which are scheduled to begin in March 2017.
