A waste treatment facility at Manvers in the Dearne Valley was officially opened by the Lord-Lieutenant of South Yorkshire, Andrew Coombe.
Over the next 25 years, the facility will treat household waste from Barnsley, Doncaster and Rotherham and turn it re-usable resources to avoid it being sent to landfill sites.
The new facility was commissioned as a partnership between Barnsley, Doncaster and Rotherham Councils.
The plant extracts recyclable materials, including metals and plastics.
Organic and food waste is separated off to create a compost-like material.
Non-recyclable material will be turned into a fuel used at a power plant.
Lord Lieutenant Combe said: “This project oozes professionalism and the level of leading edge technology is incredible.”
More than 40 jobs have been created at the plant, which started operating in July.
Rotherham councillor Kath Sims, said: “This facility is increasing recycling, reducing the amount of waste sent to landfill, making energy from waste, and creating new jobs.”