The facility, which is expected to start operations by early 2018, will process about 320,000 tons of household and commercial waste every year.
The waste will be burned to generate enough renewable energy for about 40,000 homes per year.
Under the power purchase agreement (PPA), GDF Suez Energy UK will buy up to 208GWh of electricity per year.
The energy will be generated at an index-linked rate, providing AmeyCespa with a market-reflective price for its energy.
The PPA includes a floor price, guaranteeing a minimum rate, should market prices decline sharply.
Allerton Waste Recovery Park will divert about 95% of household waste from landfill in York and North Yorkshire.
Expected long-term savings on the cost of waste treatment are estimated to be about £250m over the life of the contract.
The plant is being developed by AmeyCespa as part of an agreement with North Yorkshire County Council and City of York Council.
The project has been funded with competitively sourced finance from international project finance banks as well as equity investment from AmeyCespa, Equitix and Aberdeen UK Infrastructure Partners.
Once operational, the facility will provide employment for about 70 people. About 400 people are expected to be involved in the construction process.
