Cavendish Farms is taking unmarketable grain at its new bio-gas plant in New Annan, Prince Edward Island.
The company will transport the wheat to the plant.
It has been a difficult year for many Island grain farmers with higher levels of toxins making some wheat unmarketable and unsafe for animal feed.
High levels of a toxic fungus, brought on by a wet summer, have forced farmers to destroy thousands of hectares of milling wheat.
Some farmers have been burning their bad wheat crops or spreading them on fields.
Using the wheat at the plant is a more environmentally friendly option, said Mary Keith, spokeswoman for Cavendish Farms.
"This provides an opportunity to dispose of it in a way that will reduce the impact, certainly, on the land as well as provide an opportunity to generate a more environmentally friendly energy,"she said.
Keith said she's not sure exactly how much wheat the plant can accept, but there is plenty of room for additional organic matter.
