The £80m gasification plant will process over 100,000 tonnes of waste per year and power over 15,000 homes on the eastern fringes of the city.

On Tuesday the London Waste & Recycling Board confirmed it would provide guaranteed funding of £12m for the scheme, a pledge that will help unlock the remaining funds from private sources.

Gasification differs from traditional incineration, heating the waste until it turns to gas before burning it. This is a far more efficient way of extracting energy then simply burning the solid waste.

The facility will be built on the site of the Ford factory in Dagenham.

London’s Mayor Boris Johnson said: “as the world meets to discuss climate change, London is taking practical action to tackle all aspects of waste that damages our environment.

“There are millions to be made from the capital’s waste if we turn it into a resource, as this innovative project in east London is set to do. Not only will this help cut carbon and divert waste from landfill, it will create welcome green collar jobs.

“It is common sense that, as well as investing in the infrastructure to processes the capital’s waste, we must also encourage Londoners to recycle as much as possible or reuse items that could just get chucked away.

“The Recycle for London campaign is designed to achieve this working hand in hand with borough councils.”

Sam Bond

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