The Environment Agency has agreed to grant a licence for a proposed new incinerator at a former colliery site in Nottinghamshire.
The facility at the former Rufford Colliery in Rainworth will generate energy from waste and deal with 180,000 tonnes of rubbish a year.
Campaigners have opposed the plans and say they are concerned about pollution.
The Environment Agency said the new permit will set strict conditions on its operation.
Greg Broughton, Environment Manager for the Environment Agency, said: "We have considered this application very carefully, and we are satisfied that the incinerator will not harm the environment or human health provided that it is operated in accordance with our permit."
Residents have said they do not want the area to become a dumping ground.
The scheme, by environmental services firm Veolia, was approved in principle in January by the county council.
A public inquiry into the plans is due to be held in October.