Main contractor Skanska will now start construction in spring 2013 on the site at Bowling Back Lane.
Building work will be complete in 2016 when the Pennine Resource Recovery (PRR) will start a 25-year contract worth £1bn to turn Bradford’s waste into power.
PRR is made up of Skanska, FCC Environment and AECOM.
Skanska is leading the development of the project and will work through a joint venture with AECOM to design, build and commission the plant. Once built, FCC Environment will manage its operations.
The construction phase is expected to create 300 jobs.
Mark Tribe, project director for PRR, said: “This decision is great news for Bradford and Calderdale.
“The scheme has been specifically designed for the area and we will be working very closely with local training and employment agencies to ensure that local people across both districts are able to benefit from the employment and training opportunities on offer.”
Skanska has been appointed preferred bidder for the Bradford and Calderdale Waste Treatment PFI project.
After planning permission is achieved, construction of the waste processing facility will begin under a three-year programe, valued at around £170m.
Skanska UK, in joint venture with consultant AECOM, will carry out engineering, procurement and construction of the waste incinerator complex.
The Bradford and Calderdale Waste Partnership also includes the City of Bradford Metropolitan District Council in partnership with Calderdale Metropolitan Borough Council.
Skanska’s contribution to the design, build, finance and operation will be made public when the project reaches financial close later this year.
Once the new facility is completed, Waste Recycling Group, will undertake the operation of the facility for a period of 25-years.
The waste treatment facility in Bradford, known as a Resource Recovery Facility, will accept and process all of Bradford and Calderdale’s residual waste and recyclable materials such as metals, plastics, paper, card and aggregates.
The remaining waste will then be thermally treated in the energy recovery plant producing electricity that is to be fed to the National Grid.