The Bloomington based energy cooperative Hoosier Energy plans to build a system in East Central Indiana that would create energy from a landfill.
The project that will be constructed 20 miles outside of Muncie will operate by capturing the methane gas naturally emitted from trash during decomposition. It will then be converted into usable energy.
Hoosier Energy has three other similar systems in the state and spokeswoman Mary Lynn Beaver says they're a part of the company's larger strategy.
"We have a goal of meeting 10 percent of member system power needs by 2025, so this is definitely a part of that," she says.
It's a small part—only about 0.3 percent, but Beaver says with the help of the newest project along with several others, Hoosier Energy plans to get about 5 percent of its energy from renewables by the end of the year.
Construction is scheduled to begin in the fall of 2016 and be complete by early 2017.
The $12 million project is being financed with clean renewable energy bonds.