The 43 million scheme planned by Combined Power and Heat (Highlands) Ltd for Invergordon was refused permission by Highland Council last August. But after an appeal, a government Reporter approved the project last month.
Now Ross Estates, also known as Balnagown Estates, has gone to the Court of Session to challenge the plans. Ross Estates, owner of Balnagown Castle, the Highland home of Mr Fayed, argues key factors, including possible effects on human health, have not been addressed correctly.
The appeal was served on Scottish ministers and the developer yesterday. They have 21 days to appeal and a hearing could take place next year. Tina McCaffery, chairwoman of Invergordon Incinerator No To Waste, said: "We are pleased this will be investigated further."
Combined Power and Heats said the proposed plant would be fuelled by un-recyclable domestic, non-hazardous commercial and industrial waste and provide a more environmentally sustainable method of disposing of residual waste.