Biomass for the converted plant will be supplied by Ontario’s forestry sector to produce about 200MW of clean, renewable power.
The project will generate nearly 200 construction jobs at the plant.
According to the ministry, the Atikokan plant had burned the last piece of coal on 11 September 2012.
Ontario Minister of Energy Chris Bentley said, "By reducing harmful emissions we are ensuring a cleaner, healthier Ontario for current and future generations."
Ontario Minister of Environment Jim Bradley said, "Ending coal-fired electricity generation in Ontario is the largest reduction of greenhouse gases in North America."