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Ontario winemaker Inniskillin and alternative energy firm StormFisher Biogas plan to use leftovers from the production of wines to make electricity.
The companies will use Inniskillin's grape pomace, a mixture of grape skin and seeds that previously was shipped to a landfill, to produce methane gas that will be used as fuel.
The companies said they believe that the project to reuse about 1,000 to 2,000 tonnes of grape by-products demonstrates sustainable business practices.
Inniskillin is a subsidiary of Vincor Canada, in turn owned by U.S.-based Constellation Brands Inc.
StormFisher produces renewable energy from food and beverage processing by-products in industrial tanks for use in electricity generation and the production of natural gas.
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