The facility is 50% owned by Biffa and 50% owned by sustainable waste and energy company Covanta Holding Corporation and Macquarie’s Green Investment Group.
The plant, located just off the M1 motorway in the East Midlands, will be able to treat up to 350,000 tonnes of non-recyclable waste each year.
It will also generate up to 42 megawatts of electricity per year, enough to power around 80,000 homes.
Biffa will be the primary waste supplier for the facility, providing 70% of the fuel needed from its local waste collection services.
Covanta will operate the facility under an initial 20-year operations and maintenance agreement.
It will also provide technical oversight during the construction period.
Constructing the facility is expected to take around 39 months and will be led by Hitachi Zosen Inova under a turnkey engineering, procurement, and construction (EPC) contract.
The process is expected to create 300 jobs and multiple opportunities for the local supply chain, with the project committed to purchasing goods and services from nearby companies whenever possible.
Michael Topham, chief executive at Biffa, said: “Biffa has a leading role to play in developing the recycling and energy from waste facilities that the UK needs if it is to become a low-carbon, resource-efficient economy.
“Reaching this milestone at the Newhurst facility, along with our ambitious investments in recycling, are vital steps in the delivery of our strategic investment plans.
“We look forward to working with our partners to further reduce the UK’s reliance on landfill or export for managing its non-recyclable waste.”