Viridor has signed a 25-year contract with Glasgow City Council for waste treatment services.
Under the Glasgow City Residual Waste Treatment Services Design, Build, Finance and Operate contract, Viridor will finance, construction and operate a recycling and renewable energy centre in the south of the city to treat residual municipal waste.
The centre will include facilities for recycling, anaerobic digestion and energy from gasification.
Between 175,000 and 200,000 tonnes of waste will be treated per year and the service aims to cut landfill by 90%.
Viridor will invest around £160m on the project and the plant will be built by Interserve. The contract is subject to planning permission for the plant which will be made this summer with consent hoped for early next year.
Viridor chief executive Colin Drummond said the contract was a key part of the company’s growth strategy in Scotland.
“The new plants will have a combined gross electrical power generation capacity of 15MW and Viridor will work with its partner, Glasgow City Council, to maximise heat recovery opportunities,” he said.