CANTON, Ohio -- Some of the green jobs that state leaders covet are sprouting in northeast Ohio.

Hydrodec, which recycles oil used by the electric utility industry, opened a plant Tuesday in Canton that company leaders say is the first of its kind in the nation.

The plant has the capacity to recycle 8 million gallons of transformer oil each year. Transformer oil insulates and cools transformers, which switch electrical supply from low to high voltage for transmission over long distances.

"There isn't anyone else out there that can do what we do," said John Cowan, president of Hydrodec North America.

Hydrodec removes contaminants in a process with virtually zero emissions from oil that otherwise would be burned off and generate carbon dioxide, he said.

Transformer oil generally lasts about 10 years and Cowan estimates that U.S. utilities annually discard about 120 million gallons.

One advantage Hydrodec's recycled oil offers is price stability, Cowan said. Transformer oil is made from crude oil and therefore linked to its price fluctuations.

The plant will employ 20 people to start and will soon grow to 35 employees. It could eventually employ as many as 65, according to a commitment letter with the state.

Ohio leaders, who are pushing for green jobs to help replace thousands of lost manufacturing jobs, are providing Hydrodec with nearly $1 million in grants and tax credits.

"They're finding opportunity in alternative energies and renewable resources," said Leah Anglin-Walsh, a regional economic development director for the Ohio Department of Development. "It's a good investment of state dollars."

Northeast Ohio has been hit particularly hard by manufacturing losses, including the 750 jobs at Hoover Co. in North Canton.

Canton Mayor William Healy II said the city's strategy is to attract numerous smaller employers like Hydrodec to recover from the big corporate losses.

"We are putting a high focus on green collar jobs, and companies looking at renewable energies," Healy said. "The reality is there's going to be a huge emphasis on sustainability from the state government and the federal government."

Hydrodec, based in the United Kingdom, has a smaller oil recycling plant in Australia and plans another in Laurel, Miss., by late 2009.

Hydrodec will sell recycled oil directly to utilities for existing transformers and to transformer manufacturers.

"We have several utilities in the process of testing the oil, once they've completed those tests they will be entering into commercial contracts," Cowan said.