Terra Eco Systems has secured a contract with Hertfordshire County Council to design, build, finance and operate a composting centre to handle garden and kitchen waste.
Located in Hatfield, the new facility - due to open in November - will be able to process up to 55,000 tonnes of green waste a year. The aim is to use organic material collected through kerbside schemes and recycle it so that it can be used on local farmland and by local people on their gardens.
A similar facility is already operated by Terra Eco Systems in Buckinghamshire.
Hertfordshire County Council executive member for transportation and environment Stuart Pile said: “If this new facility gets the go-ahead, it will not only reduce the pressure on landfill sites but it will also help us to put something back into the environment on a major scale.”
The project is subject to planning permission and a waste management license.