Ceredigion and Pembrokeshire County Councils, local authorities covering west Wales in the UK, have struck a joint deal to export residual waste to Sweden for use in a CHP plant.

Under the new contract with Potters Waste Management, which will save each council over £350,000 ($533,000) a year, some 30,000 tonnes of waste from the two counties that cannot be recycled will be exported to Sweden annually, where it will be used to produce both electricity and heat for local Swedish households.

The new 15-year contract starts on 1 March 2015, with the first shipment expected to take place at the beginning of June.

Waste collected by the two counties will first be processed at sites at Pembroke Port and in Lampeter to remove certain recyclable materials. It will then be shredded, baled and wrapped at Pembroke Port to create Refuse Derived Fuel which can be shipped overseas.