The plant, which will be built at Scottish Water's Deerdykes composting facility, will be constructed by Glasgow-based HBS Construction with design and technical advice provided by AD specialist Monsal, who are based in Mansfield, Nottinghamshire.
Responsibility for day-to-day operation of the plant will rest with Horizons, which is the commercial arm of Scottish Waste Water Services.
Expected to be fully operational by April 2010, the plant will generate 1MWe of electricity and 1.1MWth of heat.
Planning permission for the site has already been awarded and the company is in the process of securing permits for its operation.
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