Seven councils across the North East have joined forces on a £2.1bn energy and waste project.
The councils will build a new Energy Recovery Facility to generate electricity and heat through the controlled burning of rubbish.
Built on a brownfield site in Redcar and Cleveland - currently owned by the South Tees Development Corporation - it would use around 450,000 tonnes of waste a year.
The project will involve Darlington BC, Durham CC, Hartlepool BC, Middlesbrough BC, Newcastle City Council, Redcar and Cleveland BC, and Stockton BC
A spokesperson for the project said: 'By joining forces the seven councils can create a new facility using the latest technology, reducing the amount of waste that is sent to landfill, which is better for the environment.
'The commercial opportunity this proposed plant also presents could mean that we can generate significant income, thereby offsetting costs for the taxpayer.'