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The project will preserve around 37 operational jobs at the facility and about 70 indirect jobs. It will also support up to 300 jobs during the construction period.

Successful bidder MVV will construct and operate a new Energy from Waste facility near to the current Dundee Energy Recycling Ltd (DERL) run-plant at Forties Road, which it will replace.

The new facility will also be capable of producing combined heat and power (CHP). The nearbyMichelin plant will benefit from energy provision from the new plant, with any surplus heat capable of being used within the local residential area.

The new plant will have a capacity of 110,000 tonnes per annum, enough to treat all residual waste from the two partner councils.

Construction of the new facility is expected to take three years.

Councillor Kevin Cordell, Dundee City Council neighbourhood services convener, said: “As we move toward meeting new targets, a much more environmentally-friendly method of dealing with waste was vital for both the city and Angus.

“This is an exciting development for the local area and one which will be of value for many years to come.”

Councillor John Alexander, Dundee City Council leader, said: “This is a huge step for the future of waste disposal for both Dundee and Angus and represents another ambitious investment in our local economy.

“This plant will help our city’s impressive Michelin factory as they drive their business forward with innovation and expansion to safeguard jobs and create new opportunities.

“We are working with two major European companies in the form of MVV and Michelin, and this shows how strong industrial partnership work including Dundeecom is already bringing economic benefits to the city.”

Angus Council’s Leader Councillor Bob Myles welcomed the completion of the project, “This project has taken some five years of hard partnership work and has reached a successful conclusion. Being in a position where we, Dundee and Angus Councils, are meeting our targets of no residual waste going to landfill, in advance of the 2020 target, shows our commitment to the environment and to making best use of waste material and good partnership working.

Angus Council Convenor of Communities Councillor Craig Fotheringham added, “As partners Angus and Dundee have worked hard to develop a sustainable model that meets our waste disposal requirements. This project is a major step in delivering our ambitions and we look forward to a successful future with MVV.”

Paul Carey, MVV managing director said: “MVV is very happy to have reached this point in the project; for us now, begins the work of running an efficient facility, building a new EfW plant, and being a good neighbour in the community.”

Michelin Factory Manager John Reid said: “This is welcome news on an important and innovative project in which we are a key partner. Once complete the factory will utilise steam and electricity from the incinerator, and reduce CO2 emissions by around 90%.  There will also be reductions in the cost of energy consumed by the factory to help lower operating costs.

“This adds to our environmental focus as we already produce 25% of the site’s electricity from two wind turbines, which were installed in 2006. At the time Dundee was the only Michelin factory in the world to embrace wind power, demonstrating the factory’s commitment to pursuing sustainability in manufacturing.

“The reduction of our impact on the environment is a key policy as is our commitment to local communities and this project delivers on both strands. It’s good for Dundee’s economy and it’s good for the environment.”