Work on the plant will start in a few weeks, with the facility expected to come onstream in early summer 2017.
Interserve’s portion of the project, which received £150m of investment from Copenhagen Infrastructure Partners, is worth £50m.
Based in Templeborough, Rotherham, the ‘Brite’ power plant will be fired with locally sourced waste wood and have a capacity of 45 MW.
The power output generated from the plant will be equivalent to the energy consumption of 70,000 households and result in an annual carbon dioxide reduction of 360 tonnes.
Andy Jarman, commercial director at Interserve said: “The waste sector is a key growth area for Interserve. We recognise that projects of this type are highly technical and challenging, requiring key expertise to construct, operate and maintain. This is why we have formed a strategic partnership with Babcock & Wilcox Vølund who will operate and maintain the Brite plant from 2017.”