The deal for integrated waste management services follows hot on the heels of a similar 30-year link up with Cornwall County Council.
Structured independently of the waste operator, the model used should improve the capacity of the waste sector to handle the large level of capital investment required to support waste services in the UK over the next few years.
SITA UK chief executive Per-Anders Hjort said: Were delighted to have signed this contract with NCC just four months after being appointed preferred bidder.
This underlines that SITA UK has the capability to deliver these complex contracts and to manage all of the issues and provide an effective solution for its clients.
As part of the deal, a range of new facilities will be provided to increase recycling and composting rates with construction of an extension to the Tees Valley energy from waste site to commence immediately.
A new state of the art recycling facility and waste transfer station has also been proposed for land at West Sleekburn Industrial Estate.
This would incorporate leading edge techniques to process mixed newspapers, magazines, cardboard, cans and plastic bottles collected by the six district councils kerbside recycling schemes to help push the recycling rate to over 45%.
NCC leader councillor Bill Brookes said: Improving waste management in Northumberland is one of the councils key objectives. We have already made significant progress; achieving a 29.4% recycling and composting rate in 2005, exceeding the national target of 25%.
However, we recognise that much more needs to be done to increase recycling rates even further and to reduce our reliance on burying waste in landfill sites to the minimum.
To attract the capital investment needed, the decision was made to implement proven technologies, with equity for the project provided by SITA UK, the Royal Bank of Scotland and AXA.
The combination of high recycling rates and energy recovery will mean that in future only 8% of Northumberlands municipal waste will be buried in landfill.