Energy Works, the renewable energy power plant planned for Hull, has been awarded a £19.9 million grant.
The power plant, in Cleveland Street, will use an innovative combination of green technologies and will be the first of its kind in the UK.
The Communities Minister will officially announce the grant today during a visit to the city.
Baroness Hanham is to meet the scheme's promoter, Hull-based Spencer Group, before visiting the Marfleet Environmental Industries Park in Hedon Road.
The grant comes from the European Regional Development Fund and is a key part of the financing for the £100m-plus energy recovery plant.
Baroness Hanham said: "This plant will reduce greenhouse gas emissions and contribute to the security and diversity of the energy supply.
"Supporting this Hull-based company with public funding to pioneer these cleaner, more efficient technologies and sharing the learning gained from operating the plant, will help to roll out similar facilities elsewhere in the UK and around the world."
