Chief executive David Palumbo said the agreement means the company is on-track to deliver the UK's first sustainable waste-to-energy plant using EQTEC's gasification technology, according to a statement.
The company is now assembling the optimal construction resources and delivery model, he added.
The property will cost £8.6mln to buy, with a £260,000 deposit payable immediately and the remainder will be due within twelve months. It is subject to a number of conditions, relating to the development and financing of the project.
"Billingham is estimated to convert 200,000 tonnes of non-recyclable household and commercial waste each year into 25MW of green electricity and 34MW of heat production,” Palumbo said.
“The project is expected to create jobs and deliver environmental and economic improvements to the local community as well as, we believe, attractive returns for our shareholders."