Zero Waste: Edinburgh and Midlothian is a joint-council project which was set up by the government to help Scotland become a waste-free society.
The project has awarded the contract to Alauna Renewable Energy Ltd. (ARE).
The facility will use anaerobic digestion: an enclosed composting process which creates agricultural fertiliser from the waste while at the same time producing methane gas.
The gas produced can then be used to generate renewable electricity.
The 20-year contract is for the design, finance, construction and operation of the facility.
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Councillor Jim Orr, Environment Vice Convener for the City of Edinburgh Council, said: "This is a key part of our long-term strategy to increase recycling in Edinburgh. These state-of-the-art facilities will provide a long-term, value for money treatment solution for food waste collected by both councils with the potential to produce a range of local benefits, particularly green energy."
Councillor Jim Bryant, Cabinet Member for Economic Development at Midlothian Council, said: "I am pleased that the successful bidder has chosen to locate the facilities on a site provided by the Partner Councils at Millerhill Marshalling Yards in Midlothian. This is the first step of the Council's vision for a Zero Waste Parc at the site. We are excited about the regeneration of derelict industrial land and the future benefits that this could bring to the local area."
The next phase of the project will see details of the agreement drawn up with the view to signing the contract by the end of the year.
Construction is expected to begin in 2014 with the facility up and running by the end of 2015.
(IT)
