The company was quoted by Agence France Presse (AFP) as saying that it is planning to produce 250MW per day by burning trash and by processing algae and salt and waste water into power.
The project in southwestern province of Chaharmahal-Bakhtiari is expected to create 600-700 jobs, of which 80% would go to locals.
The project is slated to commence in September 2014.
Currently, Iran is negotiating with world powers for a conclusive deal to resolve international concern about its nuclear program.
