Ineos subsidiary Ineos Bio says it intends to build a waste-to-biofuel plant at its Seal Sands site on Teesside by 2012.
The plant will process 100,000 tonnes of biodegradable household and commercial waste a year to make 30 million litres of bioethanol and generate three megawatts of electricity.
In June, the company received £7.3m in grants from the energy and climate department (DECC) and One North East. The company is now looking to secure finance for another £44.7m. It already has planning permission.