Two controversial multi-million-pound waste incinerators could be built less than 15 miles apart, it has emerged.

German company MVV Umwelt was yesterday confirmed as preferred bidder to build a £140 million Energy from Waste (EfW) plant in Devonport Dockyard to handle rubbish from Plymouth, Torbay and South Devon.

But Viridor Waster Management, which had its plan for a similar plant at New England Quarry near Lee Mill in the South Hams rejected by the South West Devon Waste Partnership, said it would continue with the development, saying it was "confident that there is still an evident market" for the development.

Both plans were criticised heavily before the decision was announced, over emission safety fears and worries about increased heavy goods traffic.

Yesterday, campaign group Ecoivy, which campaigned against the Ivybridge scheme, said incinerators were an "out-of-date solution" to our increasing landfill problems and calls for all three councils – Plymouth, Devon and Torbay – which make up the South West Devon Waste Partnership , to vote on the plan. Instead of one mass incinerator, we now face the devastating prospect of two being built," said Ecoivy spokeswoman Charlotte Mills.

"Devon taxpayers will be shocked to learn that this decision has never been fully voted on by all the councils involved.

"This is the wrong decision for Devon. We will now be exploring legal avenues to stop this incinerator, as we believe the decision is fiscally and environmentally irresponsible."

Viridor, part of the Pennon group, which also owns South West Water, said it was "naturally disappointed about the decision, as we worked hard putting together what we believed to be a deliverable and cost effective bid".

In a statement it added: "We remain confident that there is still an evident market for our New England Quarry development, and that it is a suitable location for such a facility. We will now review our options for the site and look forward to the outcome of our planning application in the coming months."

Plymouth City Council yesterday welcomed the decision to built the incinerator in the dockyard's North Yard. Cabinet member Councillor Mike Leaves said: "Waste is everyone's problem and it is vital we find an alternative to landfill, so we are very pleased with this potential solution."

But Tudor Evans, the Labour group leader on the city council, called for a public inquiry into the decision to award a contract to the German company.

Mr Evans said: "We have no way of knowing if this company is any good. They have no track record in Britain. It's a risky project for the city."

City waste tip site will save Torbay millions

Devonport waste incinerator: Labour calls for a public inquiry

Incinerator future worthy of big debate

Decision on site 'not driven by politics'

Waste incinerator WILL be built at Devonport Dockyard's North Yard