An extraordinary meeting of Norfolk County Council has approved new plans for the Willows Power and Recycling Centre a week after the Government withdrew £169m in PFI funding from the project.
A report warned that rejecting revised plans submitted by the Cory Wheelabrator consortium would “effectively bankrupt” the council because it would be obliged to make compensation payments of £20m-£30m.
It said that even without the waste infrastructure grant, the project would save £20m during the life of the contract compared with using landfill.
Forty councillors voted in favour of the revised plans and 38 voted against. Six councillors were absent.
The plans will need to be accepted by the council’s cabinet committee on 29 October before proceeding.
A spokesman for Cory Wheelabrator said: “We are not making any comment until tomorrow after the cabinet has concluded.”