Joint media release with Minister for the Environment The Hon. Melissa Price

West Australian families and business are a step closer to new, reliable, affordable electricity as construction begins on a new waste-to-energy facility in Kwinana.

Avertas Energy's project, supported by a $23 million grant and up to $90 million on debt finance from the Morrison Government, will create new jobs and has the potential to power up to 50,000 homes.

The facility will be capable of processing 400,000 tonnes of non-recyclable household, commercial and industrial waste a year.

Minister for the Environment Melissa Price said the project would divert waste from landfill and reduce greenhouse gas emissions.

"The Kwinana waste-to-energy facility is expected to reduce CO2-e emissions by 400,000 tonnes per year, the equivalent to taking 85,000 cars off the road," Minister Price said.

"It also prevents more non-recyclable waste going to landfill, reducing harmful methane emissions from those sites."

Minister for Energy Angus Taylor said the project would contribute to grid stability in WA's South West Interconnected System.

"This project will deliver 36 MW of reliable, baseload energy for Western Australia," Minister Taylor said.

"Our support for this project reinforces the Morrison Government's commitment to providing affordable, 24/7 power to keep the lights on and keep energy prices down."

Global fund manager Dutch Infrastructure Fund holds an equity stake in the project, which has been developed by Phoenix Energy and Macquarie Capital.