The bio-energy facility will be built by a Western Australian company, Delorean Corporation, on the pork production farm owned by John Bourke.
The $13.8 million project will receive up to 41,000 tonnes a year of food and agricultural byproducts in its first phase.
Renewable energy will be generated via anaerobic digestion technology and produce 1.4 MW of electrical energy for export to the grid managed by Delorean Corporation’s energy retailer, CleanTech Energy.
The project will enable Delorean to launch CleanTech Energy into the Victorian electricity retail market.
The project will bring to fruition a concept developed by Mr Bourke years ago, which he had not been able to get off the ground.
“I'm ecstatic,” Mr Bourke said, after the announcement by Delorean Corporation.
He will lease the site to Delorean, become a 10 per cent partner in the project, be able to send his farm waste for processing at the bio energy plant, and also tap into cheap electricity generated there.
“It's an environmental cycle,” Mr Bourke said about how the project would process agricultural waste, generate power and gas, and produce a by-product which can be used as an agricultural fertiliser.
Delorean managing director Joe Oliver said he expected earthworks to start on the site in Hill Rd, Stanhope, at the end of July, COVID-19 restrictions permitting.
The intent is to have the plant built within about 12 months and operating within 15 months.
He said the company was presently discussing building permits with Campaspe Shire Council.
Delorean Corporation has already built several bio-energy plants including one in Western Australia which has been operating for six years.
The plant processes up to 100,000 tonnes of food waste which would otherwise go into landfill.
Mr Oliver said the company had secured some agreements for waste disposal.
He said the Stanhope plant would produce no odour as the gas was captured for energy generation.
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