Communities Secretary Eric Pickles has decided not to hold an inquiry into the North Yorkshire County Council and City of York energy from waste facility.
The facility will process 320,000 tonnes of waste per year over a 25-year contract. AmeyCespa won the £1.4 billion contract in December 2010.
It will be built at Allerton Park near Knaresborough.
North Yorkshire County Council councillor Gareth Dadd said the planning and business case for the facility was “compelling”. He added that he was “very pleased that local democracy has prevailed”.
The councils will now work with AmeyCespa to finalise the contract and achieve financial close.
As well as the energy from waste facility, it is hoped that a mechanical biological treatment facility and anaerobic digestion plant will be built at the same location. It is expected this will be completed in 2016.