Staffordshire County Council will soon invite bids for a waste project backed by £122.4m in private finance initiative (PFI) credits.
The council won the credits with a plan to divert up to 213,000 tonnes of biodegradable municipal waste from landfill. Recycling and composting targets of 55%, 5% above the national average, by 2020 are also part of its plans. Combined heat and power (CHP) is one option being considered.
Waste Minister Joan Ruddock said: PFI agreements like this provide an incentive for local authorities and industry to work together to reduce the environmental impact of waste. I am pleased to see the authority pursuing an ambitious solution which can achieve major carbon benefits."
The Department for Environment, Food and Rural Affairs said the Staffordshire scheme could deliver an estimated net carbon savings of 47,000 tonnes in 2019/20, compared with the current waste management situation. It also said a CHP solution could increase this to 56,000 tonnes.
The contract will be advertised in the Official Journal of the European Union.