Iqaluit will be the site for a new waste management pilot project in Nunavut, testing a micro auto gasification system or MAGS.

The system will thermally decompose solid waste and oils, reducing the garbage to eight per cent of its original volume. The process creates thermal energy that will be used to heat nearby buildings, and gas that will be the main source of fuel for the system.

It can process up to 500 kilograms of waste per day.

CanNor is investing $350,000 in the project and the City of Iqaluit is providing just over $150,000.

City officials are looking for a location for the gasification system.

Iqaluit dump fire

A fire at the Iqaluit dump last December is brought under control. Iqaluit will be the site for a new gasification waste management pilot project in Nunavut that will decompose solid waste and oils while producing heat and gas. (Grant Linton/CBC)

"The whole point is that we're trying to get a system that will create thermal energy which this system does and put it in the right operation so we can use it," said Keith Couture, Iqaluit's director of public works. "If the system works it will probably be the model for the future for the North."

Mayor John Graham said the environmental impacts of the gasification system are in line with European environmental standards.