The Ruchlaw Produce Company in Dunbar, which employs 45 people, has been given £560,000 to turn slurry and vegetable waste into power.
The waste is fed into an "anaerobic digester" creating methane and carbon dioxide which is pumped into a biogas plant to produce 832MW of electricity and 629MWH of heat.
Rural Affairs Secretary Richard Lochhead said: "Agriculture is well placed to help Scotland reduce harmful emissions and at the same time reap the benefits for farming businesses.
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"Scotland has some of the most ambitious climate change legislation in the world and there has already been a great deal of innovation within the farming sector.
"Land use is estimated to contribute around 20% of Scotland's total emissions and the actions outlined in our plan will help agriculture thrive and create a healthier climate. A win-win solution for us all."
There are 3,200 breeding sows on the 137 hectare farm which produce 70,000 piglets a year meaning the company will not be short of pig waste.
Any surplus waste from the plant will be converted into fertiliser.
Excess fuel will be sold to the National Grid.
(GK/KMcA)
