Warwickshire County Council has granted planning permission to SITA UK to develop an anaerobic digestion plant near Meriden.
The proposed facility would treat 50,000 tonnes of municipal, industrial and commercial organic wastes.
Plans also include a proposal to have polytunnels operated by local growers that will use the compost, liquid fertiliser and heat from the plant.
SITA UK planning manager Michelle Spruth said: “We are delighted the County Planning Authority has agreed to permit the development of the anaerobic digestion facility.
“Warwickshire needs facilities like these to deal with the county’s waste in an environmentally friendly and cost effective way. We look forward to starting work.”
The application will now be referred to the Secretary of State in accordance with departure procedures and subject to the application not being called in for determination by the Secretary of State, SITA UK expects to start work on the facility in 2014.