A waste-to-energy plant planned for the Latrobe Valley could burn the equivalent of more than half of Victoria's domestic rubbish.

Garbage from 1.4 million Victorian homes could be converted to energy under the joint proposal from the owner of Victoria’s biggest paper mill and waste giant Suez.

Australian Paper announced late on Thursday that it would team up with Suez to build the huge energy plant, powered by hundreds of thousands of tonnes of household waste.

The plant at Maryvale would burn an estimated 650,000 tonnes a year of rubbish from Melbourne and Gippsland - roughly enough in cubic metres to fill three-quarters of the MCG, or 468 Olympic swimming pools.