E.ON Climate & Renewables (EC&R) and Bionersis have teamed up to invest €6.6m ($9m) on a clean development mechanism (CDM) project at the Nam Son landfill site in Vietnam.
The landfill, spread over 40 hectares, receives about 3,000 tons of domestic waste per day.
The technology will capture methane and use it to generate electricity for the local area and over the 20-year lifetime of the project, harmful emissions will be reduced by about 4.5 million tons, E.ON said.
The Nam Son project has been registered by the UN and has been approved by the Vietnamese authorities.
The first phase of the project is scheduled for the third quarter of 2010.