Sheffield City Council is to press ahead with plans to set up a centre for recycling and renewable energy on a brownfield site.
The green energies park will be built at a 22-acre former Ucar site in Upper Don Valley, which has been semi-derelict for 20 years.
The council said the park would create at least 70 jobs and that £1.5m from the Sheffield City Region Investment Fund had been secured. Around £30m of private investment is also being sought.
Recycling and renewable energy companies Raw Energy and Earthworm are in negotiations to build facilities on the site in order to supply power or gas.
Raw Energy is a Cirencester-based firm currently listing 12 biomass and anaerobic digestion projects it has either developed or is currently working on.
The council indicated that other recycling firms are being approached.
An Abbey stainless steel press will also be constructed.
Mazher Iqbal, cabinet member for business and investment at Sheffield council, said: “I’m pleased that we have been able to unlock these proposals by making the site work as a centre for renewable industries and technology. It’s not been living up to its potential and enviable location.
“The project is part of a wider council strategy to support renewable energy and manufacturing across the region.”