Plasco Energy Group Inc. will build a waste conversion facility in Ottawa that can process 150,000 metric tons of waste annually.

The Ottawa-based Plasco said in a news release it has an agreement with the city of Ottawa to supply it with municipal solid waste (MSW). The city will supply 109,500 metric tons per year and has a right of first refusal to supply the balance of plant capacity. The facility will have an effective throughput of 130,000 metric tons per year.

Construction will begin in the second half of 2013, and commercial operation is expected to start the first half of 2015. The facility will produce about 15 megawatts of net electricity that will be sold on the grid.

The facility will be built to the Plasco Conversion System design and incorporate three proprietary integrated converting and refining system modules, which gasifies the waste and refines the resulting gas using plasma technology.

The contract with Ottawa is for 20 years, with four five-year extensions at the option of the city.

The city estimates that the deal will extend the life of Ottawa's existing landfill by at least 28 years, saving Ottawa approximately $250 million in future landfill capital costs.

The facility will employ 42.