Canada's Plasco Energy Group has announced plans to construct a 150,000 tonne per year waste-to-energy plant in Ottawa, Ontario.
It will have a 15MW electricity generation capacity, as well as the ability to produce slag that can meet a range of applications such as construction aggregates and abrasives.
Moisture in the waste will also be recovered, treated and made available for reuse in the community.
Construction is set to commence in the second half of 2013, with commercial operation expected in the first six months of 2015.
Plasco has a deal in place that will see the local authority supply 109,500 tonnes of municipal waste annually, as well as the right of first refusal to supply the balance of plant capacity.
This will see the city pay $83.25 per tonne of waste, rising annually in line with inflation.
The first two decades of the contract are firm, with the potential for four, five year extensions after this point.
Local authority officials estimate the deal will extend the life of Ottawa's current landfill site by at least 28-years, saving it $250m in future landfill capital costs.