New Energy is planning to build a $200 million facility in the Boondarie Industrial Estate that will process between 70,000 and 130,000 tonnes of waste per year.
Key to its proposal has been securing municipal solid waste from local shires.
The local government has also agreed to take energy from the facility, which is expected to be able to generate up to 18.5MW of electricity.
It was still in negotiations with other local shires to secure further waste supply.
Mr Pugh also said financing negotiations were going well with both debt financers and investors looking for equity.
The company announced it had secured $50 million from the Clean Energy Finance Corporation in June, which Mr Pugh said had helped encouraged other debt finance.
He said a final investment decision was expected before the end of 2014, which would enable the first stream of waste to be supplied to the Port Hedland facility in 2017.