Sita UK has secured a £112m deal to manage household waste in Durham.
The firm will handle 140,000 tonnes of residual household waste each year for Durham County Council.
Under the eight-year contract, which will start in June, the waste will be turned to energy at Sita’s under-construction facility in Teesside.
It will generate enough electricity to power 17,000 homes.
David Palmer-Jones, chief executive officer at Sita UK, said: “We are very pleased to have been appointed to work with Durham County Council to help put their residual waste to good use.
“We are also pleased to further expand our activities in the North East of England, where we are currently investing millions of pounds in modern waste management facilities.”
Don Mclure, corporate director, resources at Durham County Council, added: “The council has a target of diverting 75% of household waste away from landfill by 2020.
“The new contract will ensure this target will be met and exceeded, with around 90 per cent of waste diverted as the contract progresses.”
The council has the option to extend the contract by four years, which would take its total value to £159m.