The funding from Iona, which invests in low carbon infrastructure, is for both the construction and operation of the plant.
The plant has prequalified under the Non-Domestic Renewable Heat Incentive (RHI), which was introduced in 2011 to incentivise the uptake of renewable heat in industry and businesses.
The principal feedstock for the plant will be waste slurries generated from local dairy and beef farming operations.
The plant will have the capacity to generate 8.8MW of base load renewable energy which is sufficient to heat circa 7,000 households on an annual basis.
The plant is being built by European AD equipment supplier Bioconstruct.
Nick Ross, director of Iona Capital, said: “Creating a sustainable energy sector is a top priority for the UK and Iona’s bioenergy projects provide both attractive commercial returns to investors as well as long-term social and economic benefits to local communities and future generations.”
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