The 1.2MW anaerobic digestion (AD) plant will use food waste from the capital’s hotels, restaurants and retailers and generate around 7,400MWh of power every year – enough to supply more than 1,700 homes.
Williams & Co will build the facility, who will receive the cash to build through Foresight Group, with the intention to process 30,000 tonnes of waste.
Vince Cable, Business Secretary said the UK has the potential to “become a world leader in this kind of technology”.
He also said “This new plant will mean less of our waste going to landfill, less reliance on fossil fuels for energy generation and provides compost for the farmers whose land it is built on.
The work will begin next week and will be ready for operation by 2016.
A commercial-scale anaerobic digestion and composting facility, the capital’s first which was funded by GIB, officially opened in Dagenham last month.