Specialist waste management firm Viridor has submitted a planning application to build a facility in Lostock Gralam, Cheshire.
The plans are designed to meet Cheshire West & Chester and Cheshire East Council's calls to develop alternative waste treatment services in the area over the next 25 years.
Viridor is currently one of two firms bidding for the 25-year £850m waste management contract with Cheshire West and Chester. Resource Recovery Solutions is also bidding and proposes a thermal plant in Wincham. A council decision is due in December.
Viridor's brownfield scheme off Griffiths Road will produce solid fuel from recovered waste for use at the Ineos Chlor power station in Runcorn.
Symon Gatsby, development manager, Viridor, said: "We have deliberately excluded the combustion of waste and believe that by using the consented Runcorn power plant and rail service, we can provide an excellent solution to meet Cheshire's waste needs."
Viridor already operates from sites in St Helens, Trafford Park and Pilsworth.