A new £1.8m bio gas plant is being planned by Portsmouth City Council.
The authority is looking to set aside £1.2m in its upcoming budget to help fund the new food recycling centre.
The new facility would contain anaerobic digesters which turn organic waste into methane gas which is then burned to generate electricity.
Councillor Vernon-Jackson told the Portsmouth News: "Across Hampshire there are only two councils that do food recycling: Portsmouth and Eastleigh.
"As part of the budget, we will be putting money into building a new anaerobic digester to serve Portsmouth, the whole of Hampshire and the Isle of Wight.
"Everyone has to feel they have their contribution to make. Every household can help reduce our carbon footprint and people really like doing their bit."
The new facility could help recycle more than 5,000 tonnes of wasted food and would generate revenue by selling methane gas back to wholesale distributors.