Leicestershire County Council has announced a shortlist of eight bidders for its £137 million private finance initiative waste project.
Last October, the Government pledged £86.6 million in private finance initiative credits for the project, which will treat up to 180,000 tonnes of waste a year by 2040.
The bidders are:
* Sita UK
* United Utilities/John Laing
Council deputy leader Nick Rushton said: We already divert 162,000 tonnes of materials away from landfill, through recycling and composting.
The council aims to bring this rate up to 58 per cent but this will still leave some residual waste.
Rushton said: We want to find the best process to treat waste, but weve made no decision on the technology and no decision on a site.
The bidders will now be asked to produce initial proposals for residual waste in Leicestershire from 2015.