Guernsey’s waste will be shipped to Sweden in future, the States has said.
Germinor UK will transfer the island’s waste to a high-efficiency heat and energy recovery facility after the official signing of a contract.
Between 20,000 and 25,000 tonnes of processed waste will be shipped every year from October during the initial three-year deal, according to the States’ Trading Assets board.
The States said Germinor was selected following a competitive tender process.
The island’s government said it looked at 18 bids from across Europe for the work, including one from Jersey.
However, it said the company’s proposal was the cheapest and, despite the longer travel distance, scored higher on the environmental assessment.
It will mean a reduction in the amount of waste landfilled, which is the island’s current method of disposal.
However, waste that cannot be burned will continue to be disposed of in landfills.
The initial deal is for three years, with the option to extend it until 2023.
The Public Services Department previously said it would not reveal the cost of the contract for “commercial reasons”, but said it was within overall project costs of just under £30m.