The biomass facility is being developed by the University of St Andrew on a former paper mill site in Guardbridge.
The plant will use wood from sustainable local sources to pump hot water four miles underground to heat laboratories and student residences in St Andrews.
In addition, over 225 jobs will be created during the projects construction phase.
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Mr Ewing said the scheme is a "terrifically exciting project and a major investment".
"St Andrews is to be commended for their sustainable energy research centre which will be a significant asset for Scotland as well as for the University," he said.
The University's Acting Chief Executive and Quaestor, Derek Watson, added: "After years of planning and preparation the biomass plant is starting to take shape and will be operational by the end of the year. This represents a major strategic step for the University and underlines our commitment to becoming carbon neutral for energy.
"With the biomass at its heart, the former paper mill site is on the verge of a new lease of life which lends itself to the creation of a range of renewable energies and technologies which will keep the University among Europe's leading research institutions."
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