A £20 million factory which turns kitchen waste and liquids into gas opened in Widnes, Cheshire last week.
It will pump enough gas into the national grid to power 10,000 homes with heating and fuel.
Owners ReFood will collect food waste and offer recycling services for businesses in a 50 mile radius, including hotels, restaurants, bars, local authorities and shops.
Their “swap service” will trade full bins for a sanitised empty bin.
Up to 180 million KWh of biomethane each year will be made by recycling 120,000 tonnes of commercial and domestic food waste and liquids, using a process called anaerobic digestions (AD).
Andy Smith, CEO of SARIA which owns ReFood said: “AD lends itself perfectly to a localised model due to the transportation of both the food waste and the fertiliser by-product.”