A £4 million showcase power-from-waste generation facility will allow local authorities to see the technology in action.
The Seamer Carr site, near Scarborough recently gained planning permission from North Yorkshire County Council.
The project is partly-funded by the Department for Environment, Food and Rural Affairs (Defra) and will be developed by Scarborough Power, a partnership between Yorwaste, NEL Power and GEM.
As the site is part of the Defra New Technologies Demonstrator Programme local authorities can consider the technology via its visitors centre. The site will divert waste from landfill, as well as helping to generate power from renewable sources, which supports Government targets to generate 20% of the UKs power from renewable sources by 2020.
Yorwaste recycling and external affairs manager John Miller said: The proposed new plant will be genuinely innovative and will attract international visitors.
The technology involved will maximise the energy produced from the non-recyclable waste more efficiently than can be done by other means.
It is particularly attractive because it is environmentally sound, small scale and modular. This means it can be expanded to suit local requirements.
Partner GEM is providing the technology to convert 18,000 tonnes of refuse a year into gas.
Electricity produced will go from the site into the local distribution system but exhaust gases will be sent to a thermal oxidiser to ensure full combustion before they are released. A small amount of inert ash will be produced, which will be put into landfill.
The facility aims to be in operation in 2008.