Organic waste generated in Cardiff will be sent to Gloucester for treatment, it has been announced.
Cardiff Council says 628 tonnes of carbon dioxide will be saved by sending waste to a site in Gloucester rather than Derbyshire.
Cardiff does not have processing capabilities for organic waste.
Councillor Margaret Jones said: "I am delighted this contract will enable us to make further CO2 reductions when compared to landfill."
The contract awarded to New Earth Solutions will run for a minimum of one year, with the option of extensions adding up to a further three years.