The plant's developer, Thunder Bay's Delta Energy Co. Ltd. signed a 20-year purchase agreement with the Ontario Power Authority recently.
The $50-million, 10-megawatt operation will be powered by wood waste to produce biogas. The gas will produce both electricity and heat. The deal almost means significant upgrades in area transmission lines.
It will be located next to local particleboard manufacturer, Fibratech and new Superior Laminated Lumber Corp.
The plant will create 60 construction jobs and 25 full-time positions when operational.
The facility will have zero sulphur dioxide emissions and reduced nitrous oxide and solid particle emissions.
Through the province's Renewable Energy Standard Offer Program, local industry will have a fixed power rate.
Provincial Energy Minister Dwight Duncan says the plant "helps make industry more competitive, prevents waste from ending up in a landfill and reduces greenhouse gas emissions."