Renewable energy start-up Farmgen has completed the first phase of development at its £2.5m anaerobic digestion project in Warton, near Preston.
The construction of service roads and the holding system for the crops which will feed the plant have been completed. Work has now begun on the two large tanks, which will form the centrepiece of the renewable energy scheme.
The new plant will use crops from nearby fields grown by Green Energy Farmers, to create the biogas to generate 1MW of electricity, which will then be exported to the national grid.
Farmgen is based in Lytham St Annes and was set up by energy advisor Michael abbott and former Yorkshire electricity boss Simon Rigby. The company raised £30m to build up a portfolio of 100 AD plants around the country.
The site at Carr Farm sees farmer Jonathan Rigby moving out of dairy farming, which his family had been involved in for generations, into 'energy farming'.
"Renewables and other sources of green energy will play a critical role in providing the country's power supplies over the next decade," explained Farmgen's chief operating officer, Ed Cattigan.
"As the country moves over to green energy, as part of the move to a low carbon economy, there is a strong opportunity for many farmers in the UK to create a sustainable and stronger future for themselves by switching to 'energy farming'."
Crops are being grown across the Fylde to supply the new Warton plant, which will start providing power next year. This will include local businesses, such as The Villa, the acclaimed hotel and restaurant in Wrea Green, which has signed up to take green energy from Carr Farm.