South Lanarkshire Council has signed a £127m deal that will see landfill-bound waste diverted for renewable energy.
Under the 10-year contract, about 80,000 tonnes of waste from South Lanarkshire will be processed at Dovesdale Farm in Stonehouse.
From there, materials will be sent to waste management firm Viridor's energy recovery plant at Dunbar, East Lothian.
Earlier this year, Viridor signed asimilar deal, worth £700m, with five other Scottish councils.
Paul Ringham, commercial director for Viridor, said: "The partnership builds on a joint-legacy of investment in recycling innovation and will further drive sustainability through landfill diversion and generating renewable energy from what remains."
The contract, which begins on 1 April 2017, will see 52,000 tonnes of waste from across South Lanarkshire delivered directly to the Dovesdale processing site.
A further 26,000 tonnes will be received via the council's Carluke transfer station.
Materials will then be transported to Viridor's £177m Dunbar Energy Recovery Facility which is currently under construction and scheduled for completion in December 2017.
Michael McGlynn, executive director of communities and enterprise at South Lanarkshire Council, said Viridor had been awarded the contract following a "rigorous procurement process" that confirmed the deal was "competitive".