A dispute over a £60m waste incinerator near Shrewsbury could cost Shropshire Council about £500,000, according to the authority’s leader.
This followed an appeal by the waste giant against the council’s decision in 2010 to reject the application.
Shropshire waste services manager Larry Wolfe, said: “Shropshire Council will part-fund the appeal, having given financial indemnity to Veolia for the costs reasonably incurred in pursuing the appeal in accordance with the terms of the waste contract.”
Council leader Keith Barrow (Con) told the BBC the costs could amount to “about £500,000”.
Work on the new facility could start in early summer, if ministers give it final sign off.
But the project still faces considerable local opposition.
Shrewsbury Conservative MP Daniel Kawcynski reportedly said he was “almost shaking with anger” and planned to raise the issue in the House of Commons.
Veolia said the scheme would burn up to 90,000 tonnes of waste and generate enough electricity to power 10,000 homes.