North West food and organic recycling company TEG Group has signed a deal with Waste Recycling Group worth between £2m and £3m.
In a statement to the London Stock Exchange, Chorley-based TEG, listed on the Alternative Investment Market for smaller companies, said the contract will run from the second half of 2012 to March 2015.
The statement added: "The contract value will range from a minimum of £2m up to £3m depending upon the volume of waste delivered over the period."
Mick Fishwick, chief executive of TEG, added: "The contract will further underpin our operations, will provide an additional new revenue stream and will pleasingly further cement our relationship with WRG."
TEG uses a range of anaerobic digestion and composting to turn kitchen and garden waste from councils, agricultural companies, caterers and other suppliers into biogas for use as an energy source.