The 600-tonne-per-day facility is expected to produce 15 megawatts of electricity using solid waste in the city of Bijie in southern China.
The project has provincial approval and the companies expect to get the final green light from the Chinese government in the second quarter of this year.
There are plans to double the facility's capacity with a second gasifier after the first phase starts up in mid-2016.
The companies also intend to turn vitrified slag from the gasifier into block foam insulation, which can be sold at a much higher value.
Alter NRG's shares had been halted Monday on the Toronto Stock Exchange pending news. Once trading resumed, the stock was up nearly 12 per cent at $1.14.