North-east firm Keenan Recycling will continue collecting food and garden waste from homes across Moray to turn into compost under a new £2.7million contract with the local authority.
Keenan, which is based in New Deer, Aberdeenshire, previously held a 10-year contract to process mixed organic waste on behalf of the council.
The company has the option to extend the latest five-year deal for a further 12 months.
Since the introduction of the Waste (Scotland) Regulations, which came into force in January 2014, Keenan has seen its client list triple from 600 to 1,800.
It now collects more than 60,000 tonnes of waste every year.
The firm has invested millions of pounds in specialist equipment to strengthen operations stretching from Stonehaven in the south to Tain in the North.
Moray Council is using Keenan for kerbside collections of mixed, green and food waste from 44,000 homes, as well as for uplifts from its household waste and recycling centres.
Keenan said it will be treating around 12,000 tonnes of the area’s food and green waste annually under the new contract.
Managing director Grant Keenan added: “It is another step forward in reducing waste and promoting recycling in the area.
Council economic development and infrastructure committee chairman John Cowe said: “The diversion of green and food waste from landfill is something that is increasingly important and securing this contract will go a considerable way to reducing the costs of the service.
“With that in mind, I would urge everyone to review their recycling practices and divert as much waste as possible.”
Mr Keenan set up the business 14 years ago with his brother Gregor.