Called a Premier Advanced Recycling Centre (Parc), the system was found to release less carbon dioxide than incineration (or energy-from-waste) or landfill.
Researched and trialled in association with Durham University and based in County Durham, the system could help local authorities recycle waste that they had previously sent to landfill.
Premier Waste Management, Civic Environmental Systems and the Department for Environment Food and Rural Affairs (Defra) developed the system under the New Technologies Demonstrator Programme, which also backed the Power-from-waste showcase Seamer Carr site, near Scarborough (mrw.co.uk/newsfeatures 1 May).
Unsorted domestic waste is turned into compost by separating out metals, glass, plastic and aerobically-digesting biodegradable materials to produce green waste compost, which can be used to manufacture high quality topsoil.
This product can be used to regenerate brownfield sites, which in turn can be used to grow biofuel crops.
A larger Parc tower will soon be added to the two already in place at Premiers Thornley site, County Durham.
Premier Waste Management chief executive Les Grant said: We have guaranteed markets for [Parcs] various outputs which we believe will expand as the uses of compost derived products become clearer and the regulatory environment catches up with these new technologies.