The plant in Sharjah is planned to take up to 300,000 tonnes of waste each year and convert it into electricity.
It intends to incinerate up to 37.5 tonnes of solid waste per hour to create 30 MW of energy which will be supplied to the national grid.
If it does this, it will help Sharjah reach a zero-waste-to-landfill target by 2020.
The project is a collaboration between Sharjah environmental management company Bee’ah – which collects approximately 2.3m tonnes of waste from nearly 1m households each year – and UAE clean energy company Masdar.
The deal was announced at Abu Dhabi Sustainability Week, where Mohamed Jameel Al Ramahi, Masdar chief executive, said: “With GCC countries having among the highest rates of per-capita waste production in the world, sustainable waste management solutions are both critically important and a clear business opportunity.”