The Environment Agency has issued an environmental permit for an energy from waste plant at Allerton Park, near Knaresbrough, North Yorkshire.
It will be permitted to receive 320,000 tonnes of waste per year and will be built and operated by Amey Cespa as part of its 25-year PFI contract with North Yorkshire County Council and City of York Council.
It received planning permission in October 2012.
However, the facility is in a period of uncertainty about how it will be funded.
In February this year, Defra withdrew PFI credits for three projects including North Yorkshire County Council and City of York Council.
Then in May, it was announced that North Yorkshire County Council said that it had made an application for a Judicial Review into the decision to withdraw the credits.
At the time, North Yorkshire County Council chief executive Richard Flinton said: “The waste PFI was projected to save up to £320 million on our waste management bills by significantly reducing the amount of waste going to landfill and reducing the amount of landfill tax the councils have to pay. At a time when public services are under extreme financial pressure, this saving will be an important contribution to avoiding cuts in other areas. Amey Cespa’s proposal also gives us a green solution for dealing with our household waste by recovering value from waste.
“We have now taken the decision to seek leave to apply for a Judicial Review of the Government’s decision on behalf of ourselves and our partner, City of York Council. While we wait for the outcome, we will continue to work with our contractor, Amey Cespa, to finalise the details of our long-term waste management project.”