The grant will help provide heavy vehicle access to the AgBioEn site, which would ensure efficient inward and outward movements of supplies and outputs.
This will help AgBioEn construct Australia's first large-scale renewable energy plant, creating upwards of 500 jobs during construction and 750 permanent jobs once operations start in 2021.
AgBioEn chief executive Peter Holmgren said the grant would be a significant contribution to the total cost of roadworks.
“This means we can proceed with the next critical step of the site works, which when completed, will enable us to start further development of the site,” he said.
Moira Shire Mayor Libro Mustica said AgBioEn would bring great opportunity to the agriculture sector, and would put the region on the map.
“What excites me about this proposal is it offers great opportunities for our farmers to grow new or expanded crops to create the bio-mass required,” he said.“I look forward to seeing AgBioEn as a major contributor to Australia’s renewable energy future.”
The funding is part of the Victorian Government's Regional Infrastructure Fund, announced in the 2019-20 budget, which has delivered $2.6 billion to regional and rural projects across the state.
Member for Northern Victoria Mark Gepp said he was looking forward to seeing the project's completion, which would strengthen communities, drive tourism and boost local economies.