It is hoped the facility will recycle and capture energy from the expected 120,000 tonnes of waste per year.
The plant, planned by Shore Energy, will be located near Corby creating 100 construction jobs and 24 positions available for plant workers.
Shore Energy project director Jon Garvey said: “The area will greatly benefit from the reduction in the amount of waste going to landfill and will be well on the way to meeting the recycling targets set by the Government.”
The plant will separate the recyclable waste into plastic, ferrous and non-ferrous metals, and inert materials such as glass grit and stones. The remaining 50,000 tonnes of biodegradable material will then be made into biofuel to provide heat and energy for the sorting process.
Northampstonshire cabinet member for environment and growth Cllr Ben Smith said: “We are under constant pressure to reduce the amount of waste which is going to landfill. Not only will waste be diverted from landfill and recycled – non-recyclable waste can be used to generate electricity from a renewable source.