Warwickshire County Council last week agreed to partner with Coventry City Council and Solihull Metropolitan Borough Council to replace a plant at Whitley.
This will process around 300,000 tonnes of waste each year from all three areas. The existing plant, built in the 1970s, already takes waste from Worcestershire and Leicestershire. The new plant will generate combined heat and power.
Warwickshire head of environment and waste Martin Stott explained: "This is just a recasting and reformulation of the proposals." The partnership will increase the chance of obtaining government financial backing such as a private finance initiative, he added.
The plant is expected to open within ten years. The county sends 21,000 tonnes of waste to the Whitley plant each year and has lifted the cap to 30,000 tonnes.
Coventry cabinet member for city services Hazel Noonan said: "We are working in partnership to ensure that waste travels as small a distance as possible."
Warwickshire is also planning to send waste to a new incinerator that has been proposed in Staffordshire by the county council.