The project will utilize co-digestion technology to process nearly 100,000 tons per year of both organic waste and agricultural waste into green biogas (methane) which will be used to generate about 3MW of renewable electricity.

The FCD will reduce the amount of organic waste sent to landfills near its feedstock suppliers, improve the sustainability of area farms as they use FCD’s organically-based fertilizer instead of traditional fossil fuel-derived fertilizers and improve the environmental quality of runoff water in the area.

The facility will also produce dilute liquid fertilizer and compost for purchase by regional agricultural businesses.

The complete mix anaerobic digester plant, which is valued at $22m, is scheduled to begin commercial operation in 2012.

Consumers Energy will buy the power generated by the power plant through a power purchase agreement.

The project, which will receive debt financing from Comerica Bank, has signed feedstock supply contracts with Fremont-based Gerber Products Company and other regional food processors and agricultural operations.

FCD will be developed by NOVI Energy and NE BioFuels, a subsidiary of NOVI, is the managing partner and minority owner of the project.

DeMaria Building has been selected by FCD as an engineering, procurement and construction contractor.

FCD’s majority owner is an investment group INDUS Energy, while North Central Cooperative of Wabash, Indiana, is a minority owner and will market the plant’s fertilizer and compost.