Kier is set to build an £80 million waste treatment plant in Wakefield after a £750m waste management PFI contract was signed with Shanks on Friday.
The 25-year contract with Wakefield Council will see construction take place in the first two-and-a-half years.
The treatment plant is designed to be entirely energy self-sufficient and will create 250 jobs in the construction phase followed by a further 60 permanent positions.
It will process around 200,000 tonnes of municipal solid waste annually, helping towards the local authority’s target of a 52 per cent recycling rate.
A visitor’s centre is also to be built at South Kirkby, providing waste education services.
Shanks is also set to take over operation of the district’s household waste recycling centres.
Wakefield Council leader Peter Box said: “We are very pleased that this agreement has been signed with Shanks Group to manage the district’s waste and recycling.
“It gives us the opportunity to safeguard jobs of current employees who work in this area and provide new jobs in one of the most deprived areas in the district with the building and opening of the new waste treatment plant in South Kirkby.
The Green Investment Bank has selected the project as one of its first investments.
A group of international banks including Barclays, BayernLB from Germany and Sumitomo Mitsui Banking Corporation from Japan, will finance the project.