UK company Versus Energy and the Finnish utility company Fortum, have put forward a proposal to create an £80m energy from waste plant in Kingmoor Park, Carlise.
The new plant will create 40 new jobs and would incinerate household waste to generate electricity to feed into the National Grid.
A spokesman said: “Cumbria County Council has allocated the site for the development of an energy recovery facility and our proposals will take this allocation forward into a full planning application.
“The proposal will create local employment, divert waste from landfill and generate electricity and heat in a sustainable manner.”
Verus hopes to submit a planning application to the council this summer. Construction could start next year with the plant operational by 2019.