Energy company Covanta’s plans for the plant at Rookery Pit, near Stewartby had been approved by the planning commission in October 2011.
But local councils objected and were able to take their case to a special parliamentary committee because the project involved the compulsory purchase of council-owned land.
After hearing evidence the committee ruled that the plant should go ahead with a contribution to a waterway project running through the site.
Malcolm Chilton from Covanta Energy said he was very pleased with the committee’s support for the project and would be happy to contribute more to the development of the future Milton Keynes to Bedford Waterway.
“We look forward to the conclusion of the process and to being able to move forward with the massive inward investment that the project will bring to the economy,” he said.
As well as a 65MW incinerators plant the £300m scheme involves a materials recycling facility to recover by-products from the EfW Facility for use in the construction industry.
Peter Brett Associates are consulting engineers on the project. The civils element of the project is expected to be worth up to £30m.