Four bidders have been shortlisted for the long-term west London residual waste services contract.
The West London Waste Authority deal covers the boroughs of Brent, Ealing, Harrow, Hillingdon, Hounslow, and Richmond upon Thames.
The shortlisted contractors are: Cory Environmental; E.ON Energy from Waste leading a consortium with Tata Chemicals; SITA; and Viridor.
Bidders will now be invited to develop detailed plans for the competitive dialogue stage of the procurement process.
The contract involves treating up to 300,000 tonnes of residual waste per year generated by 1.4 million people, and covers all aspects including transport, operation of transfer stations, and contracts for outputs such as energy, refuse-derived fuel and recyclates.
Two bidders will be selected to submit final tenders in autumn 2012.
The preferred bidder will be selected in spring 2013. The new services are likely to start in April 2015.