The privately owned Vancouver concern said the state of the art system will provide clean, carbon-neutral heat and power to the medical centre.
Total cost of the project is US$18 million and it will be delivered in partnership with DeMaria Building Co. and HGA Architects.
Switching from fossil fuel to biomass supports the VA's objectives of achieving a 30 per cent reduction in greenhouse gas emissions by 2020 and producing a minimum of 7.5 per cent of electricity from renewable sources, Nexterra said in a release.
"Biomass gasification is the cleanest, most cost-effective way for health-care facilities and other public institutions to lower their fuel costs and GHGs (greenhouse gases)," said Nexterra president and CEO Jonathan Rhone.
"This project is a significant commercial milestone for Nexterra as we expand into the health-care market."
Nexterra Systems supplies biomass gasification solutions that generate renewable heat, power and syngas for institutional and industrial customers.