The Drakelow plant will burn non-recyclable refuse derived fuel (RDF) to generating 18MWe of electricity for the grid.
The plans were originally developed by Future Earth Energy, which secured local authority approval in 2015. It will now be built, owned and operated by the Vital Energi Group.
Consulting engineer Royal Haskoning is its technical adviser on the project.
The new energy from waste facility is scheduled to be completed by 2023 and Vital Energi will have a 30-year concession to operate the facility.
The plant is to be built on a site owned by energy firm EON. This project is the first fully manned tenant on the new Drakelow Energy Park industrial development.
Waste management firm Beauparc Group has been contracted to supply Vital Energi with 169,000 tonnes of refuse derived fuel over the long-term supply contract.
Vital Energi project development director Ashley Malin said: “The UK faces many environmental challenges and this facility is an exciting opportunity to reduce carbon emissions and divert waste from landfill. We are extremely excited to be delivering and operating this facility, which will make a positive contribution to the UK’s low-carbon infrastructure.”