The new Lincolnshire plant will utilise potato waste and potatoes unfit for consumption, converting them into electricity and fertiliser.
BiogenGreenfinch, which will build the plant, estimates it will produce up to 300kw of electricity, which will be used to power Branston's processing site. "This is another important step along the journey to use food waste to reduce the greenhouse gases we in Britain emit, and produce electricity from sustainable sources," said chairman John Ibbett.
The plant forms part of Branston's £1.4m funding package for green technologies. "This will help us by reducing our utility costs and help the environment by reducing our use of fossil fuels," said development director Mark Willcox.