Leeds City Council and Veolia Environmental Services are due to start work on the city’s new recycling and energy recovery facility (RERF).
Construction work is set to begin in September at the Cross Green Industrial Estate site.
Up to 214,000 tonnes of Leeds’ black bin waste will go through the facility a year.
Recyclable materials will be removed with the remainder being incinerated.
The process will generate enough electricity to power up to 20,000 homes.
The council say the process will save £200 million.