Three West Midlands councils have decided to work together on developing a more sustainable approach to waste disposal.
Solihull, Warwickshire and Coventry councils believe they can develop a greener strategy while also cutting millions of pounds from the cost of their waste bill through a partnership approach.
All three local authorities have been challenged by the Government to deliver better value for money in the collection and disposal of household rubbish.
Coventry and Solihull councils, which already jointly own an energy from waste plant, aim to increase levels of recycling to meet national targets.
The partnership will examine ways of replacing the Whitley energy from waste plant, in Coventry, which was built more than 30 years ago, while also investigating alternatives to disposing of waste through landfill.
A report for the councils by PriceWater-house Coopers suggested the waste plant should be replaced by 2016, by which time it will be 42 years old.
Councillor Hazel Noonan, Coventry cabinet member for city services, said: "I welcome this partnership as we all need to find new ways of delivering services efficiently."