Plans for a £40m energy recovery plant for Fleetwood have been submitted to Lancashire County Council by a joint venture between Reform Energy and Wyre Waste Recycling.
Reform Energy said the plant and commercial waste recycling operation will be capable of generating enough power to run more than 12,000 homes and is expected to be fully operational in 2013.
The facility will be built on Wyre Waste Recycling's site on Jameson Road in Fleetwood.
Reform Energy added that the scheme is the first of a number of energy recovery projects planned by the company across the North West.
The Fleetwood plant will generate up to 10 megawatts of electricity using up to 80,000 tonnes of recovered waste material, and produce heat that can be supplied to local commercial or industrial operations.
The plans include a visitor centre and learning zone aimed at giving the public and local schools the opportunity to learn about the process that recovers energy from waste, and how it fits with local and national policies on energy, waste and the environment.
A spokesman for Reform Energy said: "The energy recovery plants are designed to efficiently use recycled waste material from commercial sources, and each one is tailored to its specific location. Sophisticated technology and management of the site by our expert team will mean little or no local impact but enormous benefits in terms of green energy and new employment.
"The UK is currently struggling with two key issues; too much waste going to landfill, and not enough energy resources. Reform Energy has developed a single solution that will have a significant impact on both problems."