Covanta and the Green Investment Group (GIG) are to start construction of the Rookery South energy-from-waste facility in Bedfordshire (pictured).
Each will own 40% of the project with the rest owned by waste company Veolia.
Covanta chief executive Stephen J Jones said: “We are pleased to have reached this key milestone on the Rookery project, which is a major component of our UK development plan and the second of four initial projects to move forward with GIG.”
Rookery will provide 545,000 tonnes of annual treatment capacity for non-recyclable waste, most of it to be delivered by Veolia under a long-term contract, with the balance coming from other commercial, industrial and municipal sources.
It is designed to generate more than 60MW of electricity which will be sold into the National Grid, powering the equivalent of more than 112,500 homes.
Construction will be led by Hitachi Zosen Inova under an engineering, procurement and construction contract and is expected to take approximately three years to complete.