Cleanaway is investing in a renewable energy initiative in Melbourne that will generate enough electricity to power more than 8000 homes each year.

The company plans to add four modules to its current gas regeneration capability, enabling the company to repurpose landfill gas and produce more than 8.5 megawatts of electricity per hour. This will effectively double the power generation capacity at MRL.

Cleanaway general manager for Victoria/Tasmania, Clete Elms, said the company's decision to boost the waste to energy capability at MRL underlined its philosophy of treating waste as a sustainable resource wherever possible.

"It's a significant capital investment we're undertaking on behalf of the community because we believe in the principle of recovering, recycling and reusing waste throughout our operations and, where possible, through those of our customers," he said.

"MRL is a highly sophisticated facility with best-practice systems and technology that ensures we're able to manage and treat different types of waste safely and effectively. In this case, capturing and converting landfill gas into renewable energy brings tremendous environmental benefits for the community, while delivering more electricity to the grid." The company's upgraded power generation capacity at MRL would be operational from mid-2017.