Cory Environmental has been awarded a possible 14-year contract worth £80 million to treat and dispose of North Somersets waste.
Initially the agreement is for a seven-year contract, which has the option of a seven-year extension and commences in March 2010.
Cory will be responsible for managing an existing waste transfer station, treating food waste and green waste and disposing of residual waste. The collected food waste will be treated by the firms partner New Earth Solutions.
North Somerset Council executive member with responsibility for environmental issues Carl Francis-Pester said: Cory has proved its capability and flexibility through the tendering process and were looking forward to developing our partnership. This contract provides the council with a great opportunity to reduce the amount of biodegradable waste going to landfill, increase recycling rates and provide value for money.