Amendments to plans for a waste handling plant at Langlee just outside Galashiels have been given the go ahead by Scottish Borders Council.
The new project is aimed at reducing the amount of refuse going to landfill.
The site will house a materials recovery and composting facility and use a 12m (about 40ft) high chimney.
Concerns were voiced about the impact on housing and road safety but councillors believe measures being put in place can address those problems.
Cllr John Mitchell said: "Given the way we are heading towards trying to get down to zero waste and the way we are having to deal with waste in terms of government and European regulations, it is certainly a step in the right direction.
"As far as I know we are one of the first councils going down this particular road."
He said he believed "adequate screening" and a number of conditions attached to the plans would limit the impact on a housing development being planned nearby.
He added that he thought concerns about road safety could also be addressed by mitigation measures in future.