The Northwest YMCA in Regina is now converting organic waste into biofuel to heat its swimming pool and fuel the building's boiler system.

The project, which officially launched on Thursday, is expected to save the YMCA $2,500 a month, or $30,000 a year, on natural gas costs, according to John Bailey, the YMCA's interim CEO. It's also expected to increase the building's lifespan.

"We think this can be a really good solution not just for our Y, but for other organizations, both non-profit and private sector, across Canada and the world," said Bailey.

Ralph Goodale October 12, 2017

Regina-Wascana MP Ralph Goodale was on-hand during the ceremony to commemorate the system's launch Thursday. (CBC)

The project is also expected to divert some waste from the city's landfill.

"This [system] is the very first that's been put together by Executive Mat Service," which partnered with the YMCA on the project, said Ralph Goodale, the MP for Regina-Wascana.

The federal government provided $130,000 for the project. Affinity Credit Union kicked in another $75,000.

The total project cost was $290,000.