The contract will see Viridor receive 190,000 tonnes of non-recyclable waste each year from the councils: North Lanarkshire, East Renfrewshire, East Dunbartonshire, Renfrewshire, and North Ayrshire.
The waste will be processed at Bargeddie with recyclate extracted for further processing.
The remaining, non-recyclable material will then be transferred to Viridor’s energy recovery facility in Dunbar, where it will be used to help produce low-carbon electricity for households across the country.
The arrangement is a central tenet of the Clyde Valley Residual Waste Project – a £700m, 25-year partnership of the five local authorities aimed at meeting the Scottish government’s zero waste to landfill target.
Robert Steenson, executive director of enterprise and communities at North Lanarkshire Council and speaking for the Clyde Valley Partnership, said: “This is a significant project for the five local authorities, both as the first partnership of its kind in Scotland and in its contribution to managing household waste more effectively.
“It means that the waste, which cannot otherwise be recycled, will now be diverted from landfill and transformed into low-carbon electricity, with the Dunbar Energy Recovery Facility generating enough power for the equivalent of 70,656 homes.
“At the same time, it also reduces the overall carbon impact associated with the disposal of the waste.”