MVV Umwelt has been announced as the preferred bidder in the £95m South Devon Waste Partnership PFI scheme.
The company proposes to build a 245,000 tonne per annum Energy from Waste (EfW) facility on a site in North Yard, Devonport, in order to provide electrical energy for 37,000 households and a combined heat and power plant to provide heat for HM Naval Base Devonport.
MVV will now produce a full planning application which will be submitted to Plymouth city council in the Spring, and is expected to be commissioned in 2014.
Viridor – the other company shortlisted for the final stage of the contract – has expressed “disappointment” at the decision.
A Viridor spokesman said: “We remain confident that there is still an evident market for our New England Quarry development, and that it is a suitable location for such a facility.”