The Toronto plant will produce 2.2 megawatts of electricity, or enough to power about 1,700 homes.
It is the result of a $10 million development project, said Enbridge officials.
It combines fuel cell technology, which produces electricity through a chemical reaction, with a turbo expander, which harvests the pressure energy from natural gas distribution to generate power using a turbine.
"We take all the clean benefits of FuelCell Energy's fuel cell and we link them to a recovery of wasted pressure energy that also produces useful electricity," said David Teichroeb, who oversees business development of fuel cell markets for Enbridge Gas.
Enbridge and FuelCell, which manufactures fuel cell power plants for electric power generation, are promoting the technology to other gas utilities. The North American market represents 250 to 300 MW of opportunity for the technology over five years, the companies say.