HZI will build the plant under a turnkey engineering, procurement and construction contract.

Work will see the regeneration of a disused industrial site in Fryers Road, Walsall with more than 300 workers employed during the construction with a commitment to purchasing good and services locally where possible.

Initial work to prepare the site for construction has been carried out by Wolverhampton-based groundworks specialist McAuliffe.

The facility will utilise the latest combustion technology to turn up to 436,000 tonnes of the region’s non-recyclable residual waste every year into 49MWe of low carbon baseload electricity – enough to power around 90,000 homes.

The project has been supported by West Midlands Combined Authority, which provided an initial loan facility for enabling groundworks at the site ahead of financial close.

Fabio Dinale, Executive VP of Business Development at HZI, said: “The Walsall Facility is HZI’s 19th UK project and HZI is delighted to be awarded this important contract by Encyclis. It demonstrates the trust our clients have in our experienced staff and proven technology capabilities. This Walsall plant will utilise HZI’s proven combustion technology.”