A £100 million investment into the future of waste disposal from Dundee and Angus will go ahead after a deal was finalised to provide a new energy from waste facility to replace the city’s current Baldovie incinerator.

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 nearby Michelin 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.

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.”

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