Following a design and development phase, M+W Group will engineer, procure and construct (EPC) a new 12.5 MWe thermal treatment plant alongside a new materials recycling facility (MRF) at Levenseat in Lanarkshire.
The facility will be the first of its kind in the UK, combining fluidised bed gasification technology and refuse derived fuel (RDF) processed by the MRF. Fluidised bed gasification technology provides a more efficient syngas from biomass than traditional incineration techniques, M&W says.
It is estimated that the Levenseat facility will recycle over a million tonnes of waste materials over its lifetime and generate more than 30Gwh of heat and 750GWh of electricity every year, producing enough electricity to supply the equivalent of 18,000 homes.
Completion is scheduled for 2017.
The Green Investment Bank has invested £28.25m in the project.
M+W Group chief executive Peter Greenhalgh said: "Energy is a core sector for M+W Group. We have now secured major programmes of work in waste to energy and nuclear in the UK based on our ability to demonstrate the value of applying global engineering expertise to enable performance certainty in these industry sectors We are looking forward to successfully delivering the new infrastructure that will enable Levenseat to play a strategically important role in helping Scotland achieve its long term, low-carbon future".