Two Chatham companies are getting $3.7 million from the federal government to reduce their environmental footprint.

Truly Green Farms and Greenfield Global are receiving the funding, which will pay to eliminate the steam stack and smell from the community’s ethanol plant by Dec. 1.

Greenfield Global is Canada's largest ethanol producer and Truly Green has a 45-acre tomato production soon to double.

As part of the $8-million project, pipe waste heat and carbon dioxide from the ethanol plant will be piped underground to heat the greenhouse at Truly Green.

The companies will have to pay back the loan to the federal government.

Truly Green President Greg Devries says the project will cut their energy costs in half, while boosting tomato yields and creating clean air for the community.

“The steam is going to be captured year round,” says Devries. “We have the flexibility designed within the system we can take all or none of it and Greenfield has the capability to handle whatever it is that we don't utilize."

Officials at Greenfield Global say this sort of partnership could give the two companies a leg up in the race to find the new bio-fuel for jet engines, by using organic waste from the greenhouse.