The two 290kW boilers will be used to heat the two biggest glasshouses on the nursery as well as the office.
Dibleys owner Rex Dibley said: "It’s a hole in the ground at the moment and the building will start in January. Hopefully a month or two after that it will be up and running."
He added that the scheme would qualify for the Renewable Heat Incentive. "Hopefully we will get the money back in about six years," he said.
The nursery installed a 10kW solar panel system last year which is producing 10 per cent of its electricity needs.
It has also been reducing electricity usage by gradually changing to LED lights in the propagation house. The lights use one third of the electricity used by fluorescent tubes.