Plans for the 300,000 tonne facility were backs by the government in 2010.
Waste and Recycling company Viridor are undertaking the plans to build their £200m facility at the rail-linked site. It will join Viridor's network of £100m recycling-led infrastructure in Scotland along with proposals for £450m of "next generation" green technology.
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Viridor have said new policy from the government recognises the detrimental impact of restrictions on where waste can be sourced within the country.
The Scottish Environment Protection Agency (SEPA) guidance states: "It is acceptable for any waste arising from any location within Scotland to be treated in any waste management facility proposed within Scotland."
Annex B of the Zero Waste Plan states: "Need and proximity for waste management facilities should be considered strategically as the achievement of a sustainable strategy may involve waste crossing planning boundaries within Scotland."
Construction is expected to commence in 2013, with the initial forecast predicting the project will take three years to complete.
It is thought the development will create 150 construction jobs as well as a further 47 permanent, skilled and professional positions.
The new facility is expected to contribute £10m annually to the local economy, including £2m in salary for local families.
(IT)
