The project is the largest to be undertaken in the 29-year history of Eco Sustainable Solutions, based at Parley near Christchurch, and is its second anaerobic digestion (AD) facility.
Locally-based Mildren Construction is the main building contractor for the Parley AD plant, which is expected to be fully operational by January 2026.
The new plant will accept leftover food and peelings from the local area and convert them into green gas which will be supplied directly into the gas grid.
Eco is also converting its fleet of trucks, which transport waste to and from the facility, from diesel to green gas that will also come from the AD plant.
The AD facility will be capable of taking more than 50,000 tonnes of food waste annually, producing around 60 GWh of biomethane.
Eco’s existing AD facility at Piddlehinton, near Dorchester, has already prevented over 240,000 tonnes of carbon emissions and generated 91,000 MWhs (Megawatt hours) in full green electricity.
Eco recycles more than 230,000 tonnes a year of organic waste from Dorset, Hampshire and Wiltshire into energy and landscape products. The business, which has another AD facility at Piddlehinton, near Dorchester, and a third site in Weymouth, turned over £18m in 2023 and employs 49 people. It is owned by the Dampney family of Christchurch.
The Parley AD plant is supported by an £8.7m loan from Lombard, part of NatWest Group.