Covanta will construct, own and operate the facility, which will be located in Dublin.
The company has achieved financial close on a project financing package and intends to start construction of the facility immediately.
Construction is expected to take three years to complete with operations targeted for late 2017.
After completion, the facility will handle 600,000 metric tonnes of residential, commercial and industrial waste per year.
The facility will generate clean renewable energy for about 80,000 homes in the region.
The project agreement with Dublin covers 45 years of operations, upon which the facility ownership will revert to the city.
Covanta will be responsible for sourcing waste supply and offering additional support to the project in several aspects.
Covanta CEO and president Anthony Orlando said: "The facility will be state-of-the-art in all respects, including energy efficiency and environmental performance, and will provide a meaningful boost for the local economy."
Total investment in the facility will be funded by a combination of third party non-recourse project financing and project equity invested by Covanta.
More than 50% of the facility’s renewable electricity generation is expected to qualify for preferential, inflation-escalated pricing under Ireland’s renewable feed-in tariff through 2031.
The rest of the energy will be sold at market rates.
