The announcement was made by Environment and Energy Minister Maria da Graça Carvalho, who said that the Algarve currently sends around 85% of its waste to landfill.

Around 400,000 tonnes of waste are produced in the region every year, and the amount has increased by around 13% over the past four years. The Algarve currently sends a much higher proportion of its waste to landfill than the national average, which stands at around 56%.

Tourism also affects the amount of waste produced in the Algarve. The region receives millions of visitors every year, particularly during the summer months, which means much more waste is produced than the resident population figures would suggest.

The Minister said this helps explain why the Algarve has the highest amount of waste produced per capita in Portugal.

The region currently relies on two landfills, located in Portimão and Loulé, and both are approaching their limits. One is estimated to have around 18 months of capacity remaining, while the other has around two years.

Plans are already underway to expand the existing landfill sites, which should give the Algarve approximately another seven and a half years of capacity. However, the Government says a longer-term solution is needed.

The proposed waste-to-energy facility would use waste that cannot be recycled to produce energy instead of sending it directly to landfill.

The Portuguese Environment Agency (APA) is expected to launch a tender on 15 October to study the best technology for the project and where the new facility could be built.

No location has yet been chosen. The decision will involve the Algarve's 16 municipalities through the Algarve Intermunicipal Community (AMAL).

Portugal will also have to reduce the amount of municipal waste going to landfill considerably over the coming years, with the European Union setting a target of no more than 10% by 2035.