The private public partnership project will be undertaken by a 30/70 joint venture between Balfour Beatty and Urbaser.

Balfour Beatty will invest £13m directly, and design and build the facility, which will be handed over to Urbaser to operate from late 2015 onwards.

The consortium will now work up plans as preferred bidder with the local council to build a big incinerator plant at Javelin Park, near junction 12 of the M5.

UBB consortium beat rival Complete Circle – a consortium of John Laing, Keppel Seghers and Shanks.

It will now work up details to submit a planning application for the site early next year. The council expects to sign a contract with UBB in six months to allow construction to start in 2013.

Balfour’s winning design has been carefully worked through to reduce environmental impact. The waste plant has been stepped to reduce its impact on the skyline.

The building will utilise SUDS systems in the drainage design and be built to BREEAM and CEEQUAL ratings which are ‘Very Good’ and ‘Excellent’ respectively.

The deal will cut the amount of rubbish going to landfill, while generating enough energy to power in the region of 28,000 homes.

The council scheme will cut net CO2 emissions by more than 20,000 tonnes per year, when compared to landfill.

Balfour Beatty chief executive, Ian Tyler, said: “We are delighted to have been selected as preferred bidder for this long-term contract in the growing energy-from-waste sector.

“The facility will improve Gloucestershire’s waste infrastructure and make a major contribution to diverting more waste away from landfill.”