The city signed a 25-year agreement with GreenField Ethanol and Enerkem, a deal that will see more than 35 million litres of biofuels produced each year in Alberta.
GreenField, Canada's largest ethanol producer, will team up with Enerkem, a leading biofuels technology company in Alberta.
The deal will reportedly reduce Alberta's carbon footprint by more than six million tonnes over the next 25 years.
Mayor Stephen Mandel said Thursday he is proud to be part of a city that leads by example when it comes to environmental policy.
"It will enable us to make a noted contribution to reducing greenhouse gases," he said in a news release. "[We'll] become the first major city in North America to achieve 90 per cent residential waste diversion from landfill."
The facility is slated to cost $70 million to build.
