The contract requires the recycling and treatment of Glasgow's residual municipal waste through the financing, construction and operation of a new £160m recycling and renewable energy centre at the council's own site in the south of the city.
The plant will be built for Viridor by Interserve as the EPC contractor under a £146m contract.
Between 175,000 and 200,000 tonnes of waste has to be treated each year. This will achieve around 90% landfill diversion.
The Glasgow centre will use advanced facilities for recycling, anaerobic digestion and energy recovery by gasification. The contract is subject to Viridor's gaining planning permission to build the plant. Viridor expects to make a planning application towards the end of this summer and hopes to secure planning consent early in 2013.
Viridor chief executive Colin Drummond said: "The Glasgow Renewable Energy and Recycling Centre will make a major contribution to Scotland's ambitious Zero Waste Plan. It is a further important step in the roll out of Viridor's service contract pipeline and represents a key part of Viridor's growth strategy in Scotland.
“The new plants will have a combined gross electrical power generation capacity of 15MW and Viridor will work with its partner, Glasgow City Council, to maximise heat recovery opportunities.
“The plants are due to come on stream in early 2016. At that time, taking account of existing plants and those under construction plus the Glasgow Centre, Viridor expects to have around 1.8m tonnes of thermal treatment capacity and over 250MW of renewable energy capacity."
Interserve chief executive Adrian Ringrose said: "From an environmental standpoint it's vital that we find new ways of reducing the impact of the waste generated in our cities. This facility will make a real difference to Glasgow and the surrounding area and we are proud to be involved. It's a major infrastructure project and we shall be enhancing its sustainability both through the integration of
advanced waste-processing technologies and through the use of local businesses in the building of the facility."