Dong Energy is to develop a new plant in the UK that will recycle and convert household waste into biogas.
The company will finance, build and operate the facility in Northwich, near Manchester, to handle unsorted household waste without prior treatment using enzymes.
The plant will employ the firm's REnescience enzyme technology, which has been tested at a demonstration plant in Copenhagen since 2009.
Dong Energy executive vice-president Thomas Dalsgaard said: "The decision to build the first plant is a very important step in our roll-out of the REnescience biotechnology.
"This is an entirely new way of treating household waste where we very effectively can ensure that we get as many resources as possible from our waste."
Construction on the plant will begin by the end of this month, with plans to commence operations in early 2017.
The facility will be capable of processing nearly 120,000t of waste, which will be collected from around 110,000 households in the region.
UK-based waste management company FCC Environment will collect and supply the waste for the facility.
FCC Environment group development director Richard Belfield said: "This is an exciting new technology for the disposal of municipal residual waste, which is potentially set to revolutionise our thinking as an industry of what can be achieved."
Image: The new bio plant in Northwich. Photo: courtesy of DONG Energy A/S.