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OWEGO, N.Y. -- It's an energy efficient system that has helped Lockheed Martin's Owego plant cut its heating and cooling costs by half and reduced their carbon foot print by 25 percent. Now, the company will be creating a similar system for the Canandaigua VA Medical Center.

Lockheed has signed a $15 million contract to build a biomass system for the VA hospital. The system uses wood chips and bark leftover from lumber yards to generate steam energy.

Lockheed's Owego plant has been using the system for two years, but this is the first contract they've secured to build the set-up elsewhere.

"Our goal is to get a lot more contracts. As we get more contracts, we'll evaluate what the workforce looks like. We've got some great engineers up here at Owego. We've done some great work here at our own facility and now we're applying that to customers. The VA is the first one and we hope there's many more," said Chris Myers, Lockheed Martin Government and Energy Programs Vice President.

Lockheed is teaming up with Whiting Turner on the project. They expect it will take three years to complete.