The new system will have the capacity to convert 25t of food waste per day into renewable natural gas and by 2013; the capacity will be expanded to 100t of waste per day.

Once complete and working to optimum capacity the renewable natural gas produced at this organic waste recycling system will replace 1 gallon of diesel per year producing 2m kWh of electricity per annum.

Initially however, the 25t capacity will be used to fuel approximately 80 school buses for one year.

Atlas Disposal CEO Dave Sikich said, "By using renewable natural gas to fuel more vehicles, we’re helping to improve our region’s air quality."

Atlas Disposal will be responsible for the aggregation of the food waste from food processing companies, restaurants and supermarkets.

First phase of the project will be completed by this year and is expected generate more than $1.1m in annual combined tax revenues.