The Government has given permission to Norfolk County Council to send its waste to a Suffolk facility where it will be treated to generate electricity.
The agreement between the two authorities will see 40,000 tonnes of Norfolk’s household waste being treated at the Great Blakenham waste-to-energy plant in Suffolk.
The facility, operated by SITA UK, has the capacity to handle up to 269,000 tonnes of waste every year.
Both councils expect to make savings of around £1 million each from the two-year deal.
Councillor Mark Bee, Suffolk County Council’s leader said: “We have always believed that our Energy from Waste facility is a good environmental solution for Suffolk and great for the tax payer.
“This deal is not only good news for both county councils but for all those living in Norfolk and Suffolk.”