The BBC has reported that a £200m renewable energy facility could be built at Kellingley Colliery in North Yorkshire.
The scheme was announced by Peel Environmental, which said it would submit a planning application in early 2013.
The centre would convert up to 280,000 tonnes of non-hazardous waste into energy per year.
If approved, the Southmoor Energy Centre would create up to 38 jobs, the company said.
Peel Environmental said the centre could provide a low-cost, stable energy supply to Kellingley Colliery helping to cut costs.
The plan has been developed in consultation with UK Coal which owns Kellingley.