Said to be the first of its kind, the plant uses enzymes to convert unsorted household waste into green energy.
Located in Northwich near Manchester, the facility will use the firm’s REnescience enzyme technology to produce biogas.
Dong Energy commercial thermal power director Benny Mai said: "As a global brand leader in offshore wind farm construction and operation, we are aiming to set new standards in waste recycling with the technology we are deploying at REnescience and the long-standing expertise of EnviTec in plant construction and operation."
According to the company, the REnescience technology has been tested at a demonstration plant in Copenhagen.
The new facility will hold the capacity to process around 120,000 tons of waste, which will be collected from around 110,000 households in the region.
Dong Energy said it will test the full-scale REnescience plant under real-world conditions.
UK-based waste management company FCC Environment will collect and supply the waste for the facility, which is planned to be commissioned in early 2017.
In addition to constructing digestion plant both above and below ground, EnviTec will be responsible for the plant operations for about six months upon commissioning.
