Mercia Waste Management, a waste contractor to Herefordshire Council and Worcestershire County Council, has unveiled plans to develop a £120m energy-from-waste plant.
The firm plans to develop the facility at the Hartlebury Trading Estate in Kidderminster as part of its private finance initiative waste contract with Herefordshire and Worcestershire County councils.
The EfW plant is called EnviRecover and can treat up to 200,000 tonnes of municipal waste a year.
Mercia director John Plant said: Mercia EniRecover is the final piece of our integrated sustainable waste solution for the people of Herefordshire and Worcestershire, one which complements and supports waste reduction, re-use and recycling.
Worcestershire Council cabinet member responsible for waste and sustainability Anthony Blagg said: Worcestershire and Herefordshire residents, in collaboration with their district councils, are working hard to reduce, re-use and recycle the amount of waste that would otherwise go to landfill.
The EnviRecover facility is intended to fit with a review of the two counties Joint Municipal Waste Management Strategy which was undertaken earlier this month, which outlined a preference for EfW with combined heat and power capability to treat residual waste in the region.
Blagg said: Our review reinforced the need to find a solution for dealing with the remainder of the household waste in a way that maximises the recovery and resources and energy.
If plans for the EfW plant are approved, it will provide enough energy for more than 20,000 homes.