Independent commissioners appointed by Environment Canterbury granted resource consent on Friday for the EcoGas plant, which will be built in Hornby's industrial zone.
The open-air facility in Bromley has drawn years of odour complaints from residents - some of whom said the horrendous stench was forcing them to stay inside.
The Ecogas facility was designed to use anaerobic digestion technology, rather than composting, and consent documents stated the new facility must be sealed, with a 24/7 phone number available for public complaints about odour.
It outlined strict rules for when the building's doors could be opened and how quickly they must be opened and shut to allow vehicles in or out.
Staff would be required to carry out daily checks around the plant to detect any smells, and emissions from the plant's combustion units would be regularly monitored.
The consent was subject to a 15 working days appeal period.
Christchurch City Councillor Yani Johanson said the consent marked a major milestone, and residents in the east of the city would be very happy.
"I have a lot of sympathy for the local community, for what they've had to put up with. It has been completely unacceptable and has ruined the quality of life for close to two decades. I think it is great to see that the council has finally listened. It's great to see that Environment Canterbury has consented a new type of technology that significantly reduces the odours and moves it to another part of the city," he said.
"The feedback has been pretty consistent from the community in the past. They want to see this facility moved and they don't want to impose odours on other communities."
He said temporary measures at the Bromley facility, like moving compost storage off site, had resulted in a significant reduction in complaints.
"There's still definitely a concern from the local residents that they are subject to the adverse odour from time to time, so people will not be satisfied until the plant is closed and the new plant is operating," he said.
