09/13/2011 07:05 EDT | Updated 01/12/2012 02:20 EST

Nexterra Systems gets US$6.9M contract to supply biomass gasification systems

VANCOUVER - Nexterra Systems Corp. said Tuesday that it has signed a US$6.9-million contract to deliver a biomass gasification system for the U.S. Department of Veterans Affairs Medical Centre in Battle Creek, Mich.

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.