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Orchid Environmental Ltd (Orchid) secured a £4 million loan from the London Waste and Recycling Board (LWARB) to develop the facility.
The site will be operational in early 2013 and is the first such plant to be supported by LWARB.
The Orchid plant will take waste from homes and businesses in the surrounding area and transform the rubbish into different types of low carbon fuel.
The facility will process around 160,000 tonnes of rubbish , turning it into a range of secondary recovered fuels (SRF) that can be then be used in renewable energy plants and by industrial heat users.
LWARB says it will prevent over 38,000 tonnes of carbon emissions being released into the atmosphere each year.
LWARB chair, James Cleverly, said: “Every day we put potentially useful resources in our rubbish, which in many cases ends up in landfill.
“Orchid’s low carbon fuel production plant turns those resources into something useful.
“This not only reduces our reliance on fossil fuel sources, it will also create green jobs for the capital and divert up to 160,000 tonnes rubbish from entering the waste stream.”
Alison Brown
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