Two companies are bidding for a major waste contract in Leicestershire that could see the creation of a new mechanical waste facility equipped to handle up to 180,000 tonnes of residual waste a year by 2040.

Belt conveyors would likely be installed at the facility proposed by Osiris, where the rubbish would be turned into fuel then heated in an accompanying gasification facility to produce energy.

Rival bidder Veolia Environmental Services would also make use of bulk materials handling equipment if it is given the go-ahead to build an energy-from-waste incinerator.

Currently, Leicestershire has a recycling rate of 52 per cent and it hopes that the new waste facility will allow it to deal further with the remaining residual waste and avoid landfill taxes in the future.

Councillor Tony Kershaw, County Hall cabinet member for waste, said: "We will now meet with the remaining bidders and continue our discussions to achieve the best solution for Leicestershire."

It is intended that the new facility will be ready to go operational in 2015.

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