Novera said that pending final negotiations, the UK’s Department of Environment, Food and Rural Affairs (DEFRA) will buy $A11.9 million worth of services from the company to run the demonstration facility in the Borough of Havering in east London.

The facility, to be owned and operated by Novera, will produce renewable energy, curbing reliance on polluting fossil fuels and helping to reduce the amount of waste going to landfill, the ASX and AIM-listed company said.

It will produce power for the equivalent of 10,000 homes using a proven Canadian gasification process supplied by Enerkem Technologies, according to Novera chairman Don Stammer.

About 90,000 tonnes of household organic waste processed offsite would be put through the 10 megawatt facility, Stammer claimed.

About 64% of the power output could be classed as renewable energy under UK law, he said.

A planning application for the facility would be submitted “in coming months”, before which borough residents would be able to comment, according to Stammer.

Discussions are currently taking place with the Ford Motor Company for the facility’s site.