The scheme by developer Peel Environmental at Bilsthorpe Colliery will create 330 jobs during construction.
Bilsthorpe Energy Centre will handle up to 117,000 tonnes of non-hazardous waste each year, generated by business and households from across Nottinghamshire and surrounding areas.
The centre will generate up to 9.6MW of electricity to be exported to the National Grid – enough power to meet the average needs of around 23,000 homes.