UP TO 10,000 homes could be kept warm by a £145 million incinerator heating a network of underground pipes.
North Hykeham Town Council says it is pressing its case to secure cheap heat for the area from the energy from waste facility to be built off Whisby Road.
The plant is Lincolnshire County Council's biggest ever project and involves burning 150,000 tonnes of rubbish a year to generate electricity.
But large amounts of excess heat generated by the plant at the eight-acre site, purchased for £2.34 million, could be used to boil water.
This would then be pumped through pipes to heat nearby North Hykeham businesses and homes.
It is hoped this energy could also be used at the town's schools and attract further investment.
North Hykeham is currently home to a number of industries, including Lindum Construction, with the forthcoming Teal Park development to house Siemens.
A further 310 homes are to be built on the site of the old Lincoln Castings in Station Road.
North Hykeham Town Council clerk Mary Silverton said the authority was continuing to make a strong claim for a share of heat from EFW.
She said: "We have just written about it again to remind the county council we do want this heat used within the town. We are taking the disruption from this site and it would be quite right for the heat to be used in Teal Park, Whisby Road industries and development on the Castings site."
EFW was granted permission in July 2009 and building work by preferred contractor the Waste Recycling Group is expected to begin next February.
Project director Richard Belfield said the county council's intention was always to make use of the heat from EFW.
He said: "The facility has been designed to enable the supply of heat to local developments, such as Teal Park and surrounding property, and we will assess the feasibility of such schemes as soon as we finalise the construction contracts for the facility.
"We will specifically look at the opportunity to market the availability of large amounts of heat at commercial/industrial users and housing developers to attract them to develop their businesses in Lincoln and North Hykeham.
"There is sufficient heat from the EFW facility to potentially warm up to 10,000 homes or the equivalent businesses/industries."
North Hykeham resident and environmental campaigner James Reeves said regardless of the potential cheap energy benefits, the county council had taken the wrong approach by opting for an incinerator.
He said: "I still think the council is going in the wrong direction. It will be locked into this project for 25 years.
"Europe is proposing to collect more food waste but the council will invest a tremendous of amount that will be wasted."