At least 12,000 tonnes a year of waste wood, including MDF, chipboard and off-cuts will be collected at the county's 10 household waste recycling centres and used to produce electricity.
This initiative will have many advantages such as providing a secure outlet for waste wood, increasing landfill diversion which in turn reduces landfill tax costs and contributing towards the UK's proposed target of 15% renewable energy by 2020.
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Cllr Ben Smith, the County Council's Cabinet Member for Environment and Growth said: "What this project does is ensure that the county council is making significant steps into reducing the amount of waste which is sent to landfill.
"Not only that, this waste wood will be used to produce renewable energy, which is better for the environment and makes sound economic sense too."
The scheme will allow Renewables Obligation Certificates (ROCs) to be produced. This is a government scheme aimed at encouraging electricity producers to use greener processes and this will partly offset the county council's costs.
The scheme is due to start in October 2009.
(CD/JM)
