Dublin City Council are believed to reached an agreement with an international consortium to build the Poolbeg Incinerator, which is in the constituency of Environment Minister John Gormley .
Mr Gormley was one of 2,600 objectors to the facility, which is set to be built in Dublin's south port area.
A decision on planning permission is expected from An Bord Pleanála this autumn.
In a statement Dublin City Council said it has issued a letter of Intent to Dublin Waste to Energy Ltd, which is a joint venture between US company Covanta Energy and DONG Energy Generation, a Danish group.
The letter confirms the Council's intention to enter into a contract with the company to design, build, finance and operate the proposed plant according to the terms agreed.
