German client RWE Innogy is investing £217 million in the development of the plant, which has a construction cost of around £100 million, and said it aims to sign contracts next year.
Work was due to start on the site at the end of 2008 under former client Helius Energy, which sold the rights for the development and operator of the plant to RWEInnogy earlier this year.
The plant will burn a range of biomass feedstocks such as wood chips and residues arising from bio-ethanol, which will raise steam in a high-pressure boiler enabling the generation of electricity in a steam turbine generator.
Helius has signed a four-and-a-half year technical services agreement with RWE Innogy to provide ongoing support to ensure the plant is delivered according to the project timetable.
The project is expected to take two-and-a-half years to complete and will have a capacity of 65 MW.