A Victorian paper mill is set to be powered by a new $600 million waste plant and generate more than 1000 jobs. 

Australian Paper’s Maryvale mill, in the Latrobe Valley, is the state’s largest user of natural gas but wants to have its thermal energy plant powered by waste and up and running by 2024.

“An energy-from-waste facility at Maryvale would secure ongoing investment at the site, support employment growth in the Latrobe Valley and also provide the missing link in Victoria’s waste management infrastructure,” the company’s chief operating officer Peter Williams said in a statement on Thursday.

Up to 650,000 tonnes of waste will get diverted from landfill in Melbourne and Gippsland to be turned into power including electricity and steam.

“We must develop alternative baseload energy sources to maintain our future competitiveness,” Mr Williams said.

The company will partner with waste management group Suex to secure access to waste required to power the plant.

“We are proud to be partnering with Australian Paper on this innovative project which will be a landmark for Victoria’s emergency energy from waste sector,” Suex chief executive Mark Venhoek said.

An economic study found the new facility would support at least 1046 jobs during the construction of the waste plant and more than 900 when fully operational.