Gloucestershire County Council has been awarded £92 million by the Government to fund its private finance initiative (PFI) waste plans.
Under the plans, which will be worth £171 million over the life of the contract, the council will invite tenders to divert up to 263,000 tonnes of biodegradable municipal waste from landfill by 2020.
In its outline business case, the council did not specify a preferred technology or development site. However, a spokesman said it was considering energy from waste, two forms of mechanical biological treatment, autoclaving and advanced thermal treatments.
The project is part of the councils Joint Municipal Waste Management Strategy which has targets to achieve a recycling and composting rate of 60% by 2020.
Gloucestershire currently landfills about 190,000 tonnes of household waste every year, which will mean a tax bill of £6.4 million for the financial year 2008/09.
Council portfolio holder for waste Stan Waddington said: The council also has to pay heavy taxes and potential fines to Government on the waste sent to landfill. These are becoming impossible to manage within the current county council budget, and will have a direct impact on council tax and other council services in the future.
The Council will be issuing a notice to prospective bidders in the Official Journal of the European Union in the New Year.