The North Wales Residual Waste Treatment Project (NWRWTP) has chosen SITA UK and Wheelabrator as its final two bidders to build a residual waste treatment facility.
Both bidders have proposed a proven technology using energy from waste technology with a combined road and rail option used to transport bulked-up waste to the facility.
Although NWRWTP had previously considered a site on Anglesey, both SITA UK and Wheelabrator have identified a Deeside location, close to paper mill UPM Shotton, as their preferred choice.
The final bidder will be selected in 2013, with the facility set to open in 2017.
Each year, 150,000 tonnes of only residual waste will be treated for the councils of Flintshire, Isle of Anglesey, Conwy, Denbighshire and Gwynedd.
The Welsh Government has pledged £142 million to back the 25-year contract.
Opposition from local politicians and campaigners has already begun, and local MP for Alyn and Deeside Mark Tami said that the opinions of local people in Deeside need to be taken into account.
He added: “A lot of people have raised concerns with me over these proposals, and if it’s going to go ahead, we need full and transparent public consultation.
“And although they are saying most of the waste will come by rail, a lot will still come by truck and there will be traffic issues as a result.”