The UK Green Investment Bank (GIB) is investing £51million in a proposed new energy-from-waste plant in Kings Lynn, Norfolk.
The new facility, the Willows Power & Recycling Centre, will provide a long-term waste treatment solution for Norfolk County Council.
It will process 170,000 tonnes of black bag waste from households across the county and 100,000 tonnes of commercial and industrial waste each year.
This will be converted into 170 GWh of electricity a year; enough to meet the annual energy needs of more than 40,000 homes.
UK Green Investment Bank chief executive Shaun Kingsbury said: “Not only will this new facility prevent more than a quarter of a million tonnes of waste being sent to landfill each year it will also generate enough electricity to power more than 40,000 homes a year.”
GIB says its investment will be made alongside that of two existing lenders.
In January, GIB announced it is investing £20million in an energy recovery facility to be built in Teeside. The facility will convert more than 420,000 tonnes of residual waste into energy each year, and will generate enough electricity to meet the needs of more than 60,000 homes each year.