A £19.9m European grant has been awarded for an energy from waste facility in Hull, Yorkshire.
Spencer Group will develop the £100m Energy Works facility which will use a combination of Fluidised Bed Gasification, In-Vessel Composting and Anaerobic Digestion.
The grant, managed by the Department for Communities and Local Government, comes from the European Regional Development Fund (ERDF). Spencer Group claimed the grant is the largest for an energy generation scheme in England and one of the biggest for any project in the UK.
Last September the European Commission signalled its support for the scheme.
The facility could cut waste sent to landfill by local authorities in Hull and the East Riding of Yorkshire by 90%, according to Spencer Group, and provide enough electricity for 25,000 homes.
Communities minister, Baroness Hanham said: “Supporting this Hull-based company with public funding to pioneer these cleaner, more efficient technologies and sharing the learning gained from operating the plant, will help to roll out similar facilities elsewhere in the UK and around the world.”
Spencer Group said it expects to achieve full financial closure on the project later this year, with the first phase operational by 2014.