The project, which is being developed by Levenseat Renewable Energy, is estimated to recycle more than a million tonnes of materials including plastics, metals, paper over its lifetime.
The energy generated will be delivered to the national grid with the heat output supporting the operation of the MRF.
The MRF is anticipated to start operations in January 2017, with the complete plant starting operations in June of that year.
M+W Group has been appointed main (EPC) contractor for the project, which is expected to save about 1.3 million tonnes of CO2e emissions.
It will divert more than 1.4 million tonnes of waste from landfill and generate enough energy for about 18,000 homes.
UK GIB chief executive Shaun Kingsbury said: "This first-of-kind project is the latest innovative example of how the UK is modernising its waste management infrastructure.
"By increasing recycling and using the remaining waste to produce energy, the Levenseat project will make a significant contribution towards Scotland’s ‘zero waste plan’."
Image: The MRF is anticipated to start operations in January 2017. Photo: Courtesy of UK Green Investment Bank.
