An £8m anaerobic digester in County Durham is due to start processing in June.
Developer Emerald Biogas said this will be the first commercial food waste facility in north-east England.
It has secured a number of feedstock contracts, and is exploring the potential of biogas injection technology, which it said would upgrade the biogas to a product that can be injected into the local gas grid.
At full capacity, the Newton Aycliffe plant will process 50,000 tonnes of food waste a year and generate 1.56mw of electricity, enough to power 2,000 homes.
Its second phase, which has planning permission, would double this capacity.
Director Adam Warren said: “Despite the difficult winter and the associated problems it brought, we are now ready to begin testing the facility.
“We are confident that waste processing and energy production will begin in June and therefore we are keen to progress with the second phase.”
Emerald Biogas was formed in 2009 by partners John Warren ABP and Agricore.
It last August secured a funding package from HSBC, WRAP and the Rural Development Programme for England.