A new $90-million plant in Edmonton will transform garbage into synthetic gas.

The plant, announced Thursday, will take waste that would normally end up in the city dump because it can't be recycled or composted.

The material will go into a high-tech system that heats it and turns the waste into a synthetic gas. 

Epcor, a utility owned by the City of Edmonton, will use the gas to fuel its power plants.

"It's actually a thermochemical process so the material is heated up and uses much less oxygen. The result is a synthetic gas that can be used as a fuel," said Connie Boyce, a spokeswoman for the city's waste management branch.

Right now, the city diverts about 60 per cent of household garbage from the landfill. The new plant will allow it to divert as much as 90 per cent.

On Thursday, the province announced $29 million for the project. City council must still approve the project and its own $29-million commitment. Epcor would pick up the remaining third of the cost.

The plant is set to open in 2010.