The contract to build the new facility was signed between Edinburgh City Council, Midlothian Council and environmental services company FCC Medio Ambiente SA on Thursday, 06 October.
The company will design, develop, finance and operate the plant over a 25-year period and construction is to begin imminently. The plant is expected to begin operation in 2018.
The facility, which is being developed at Millerhill, will see up to 135,000-tonnes of mixed waste processed each year, as well as an additional 20,000 tonnes per year of commercial/industrial waste.
The generated energy will produce enough electricity to power close to 27,000 homes and help both councils contribute to the national recycling target of 70% by 2025 and the national landfill diversion target of 95% by 2025.
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Between 300 and 500 jobs will be created during the project's construction, with up to 40 jobs once operations begin.
Edinburgh Councillor Lesley Hinds said: "I am pleased that FCC will now be able to begin work on this state-of-the-art facility. In Edinburgh we have made great progress increasing the amount of waste we recycle. This new facility will provide a sustainable way of disposing of any waste that can't be recycled by using it as an energy source for locally-generated heat and power.
"The procurement of this project is an example of successful partnership working between the two councils, and will benefit both Edinburgh and Midlothian's zero waste strategies over the coming years."
Midlothian Councillor Jim Bryant added: "This is another exciting milestone in an innovative project that will turn a derelict, brownfield site into an energy production centre.
"This represents another sizeable infrastructure investment in the Shawfair area. In addition to increasing recycling rates, the plant will produce electricity for the National Grid."
Antonio Alfonso, Managing Director of FCC Environment International, said: "The Edinburgh and Midlothian contract represents another step in FCC's growth as a global partner to municipalities and authorities wishing to address environmental challenges and achieve the European Circular Economy goals."
(LM/JP)
