Zero Waste: Edinburgh and Midlothian confirmed the appointment this week.
When completed, the state-of-the-art facility will process household rubbish from both Edinburgh and Midlothian council areas.
FCC will now design, construct, finance and operate the facility, which will be fuelled by waste collected by both councils that would otherwise go to landfill.
It is understood the Zero Waste partners will sign the 25-year contract next year, with FCC operating on the site by 2018. The project will run alongside a food waste treatment plan currently under construction on the Zero Waste Parc, next to the Millerhill Marshalling Yard in Midlothian.
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Councillor Lesley Hinds, Environment Convener for City of Edinburgh Council, said: "This is a key part of our long term strategy on the journey to drive down landfill waste. Our priority is to encourage the public to cut down on waste and to fully engage in recycling.
"This facility will ensure that any waste remaining after recyclable materials have been separated out will be treated as a resource and no longer disposed of in a landfill site."
Councillor Jim Bryant, Cabinet Member for Economic Development at Midlothian Council, added: "FCC's proposal offers a local solution that will benefit both partner councils equally. I am delighted with the economic benefits and opportunities which the regeneration of this brownfield site presents and I will be particularly keen to see FCC develop a local heat network that can link into some of the other exciting projects that are set to transform this area."
(JP/IT)
