Evermore Renewable Energy has announced that it has secured more than £80m in funding to create a new wood-fueled power plant.
The plant, to be built in Londonderry Port, will create more than 200 jobs during its construction.
The new plant will produce enough power to supply energy to at least 25,000 homes.
Business secretary Vince Cable said: “The first deal done in Northern Ireland is a landmark moment for the UK Green Investment Bank and I’m confident that there will be more to come.”
The plant will be ready for operation by the summer of 2015.