Date: August 2, 2012
Source: Solid Waste Authority of Central Ohio
The Solid Waste Authority of Central Ohio (SWACO) has signed a deal with Atlanta-based Renewco LLC to build a $25 million landfill gas conversion facility at SWACO's Franklin County landfill in Grove City. Under a 20-year deal with Renewco, a subsidiary of AGL Resources Inc. and Keystone Renewable Energy LLC, SWACO will receive a share of the revenue from selling the pipeline-quality gas refined from the landfill. Until now, gas from the landfill has been burned off without any energy recovery.
This latest deal comes on the heals of a failed project officially abandoned last November. Under that deal, Newport Beach CA-based FirmGreen Inc was to build a similar facility that would have also converted landfill gas into clean fuel. However, SWACO filed suit against the company, having already invested $4.4 million in the project, after the company fell more than 18 months behind schedule. Under the settlement, FirmGreen agreed to void the contract in return for not being held liable for financial damages. SWACO was able to keep a facility built to house the gas-refining system, along with the tanks and pipelines, collectively worth about $3.3 million.
See also: "SWACO Settles Lawsuit with FirmGreen to Dissolve Landfill Gas Partnership," (www.wasteinfo.com/news/wbj20111122D.htm), November 21, 2011.
"Ohio Waste Authority Files Suit to End Clean Energy Contract," (www.wasteinfo.com/news/wbj20100615D.htm), June 10, 2010.
PRESS RELEASE
August 2, 2012
Landfill Gas to Energy Contract Signed
Today the Solid Waste Authority of Central Ohio (SWACO) announced that it has signed a contract with Renewco-FCSL, LLC ("Renewco"), an affiliate of Renewco, LLC that outlines terms of a waste-to-energy program that will convert naturally-occuring gases from the Franklin County Sanitary Landfill into renewable gas that is interchangeable with pipeline natural gas. This landfill gas is currently destroyed by two flares at the landfill. Instead of burning off the waste gas, as is traditionally done, this project will produce a renewable gas that can be sold to the marketplace and help defray costs for the ratepayers in Franklin County.
The agreement marks completion of the first phase of the project, in which SWACO and Renewco agree to a 20-year term for Renewco to build, fund and manage a gas processing facility on landfill land that is leased from SWACO. Successful completion of the project, however, remains dependent on the completion other elements including: regulatory approvals, a signed land lease agreement, and securing signed contracts for the sale of the renewable gas. Renewco will be responsible for selling the processed gas to end users.
Carbon dioxide and methane are natural by-products of landfills. Under the agreement, Renewco will operate the process to produce the renewable gas and remove the non-methane components. Once the facility is in operation, SWACO will receive royalities of 22.5 percent of gross sales minus pipeline transportation costs. Under existing market conditions, those royalties could range between $1 to $3 million per year.
Renewco is expected to begin development in February 2013 and be in operation by the fall of 2014. As part of the agreement, Renewco will lease land from SWACO at a nominal fee. "The agreement is a major step in converting landfill waste into a commodity that will generate thousands of dollars daily," said SWACO Executive Director Ronald J. Mills.
"Developing a contract that is phased in over a reasonable timeframe is an effective business approach that properly balances risk versus reward. This is especially true in the renewable gas market that has seen pronounced change over the past six months," Mills said. "We are excited to move forward with a business plan where private sector investment benefits Franklin County ratepayers so that SWACO can better protect the health, safety and welfare of the community."
Renewco is a joint venture between AGL Resources (NYSE:GAS) – the nation's largest natural gas-only distributor based on customer count and Keystone Renewable Energy, a leader in solid waste management, landfill gas collection system design and optimization, and multiple high-BTU, pipeline-quality landfill gas projects. "We are very pleased to be working with SWACO on this project. The high quality of this landfill makes it an ideal site for a renewable gas project," said Ira Pearl, Chief Executive Officer of Renewco, LLC, and Vice President, AGL Resources.
For more information visit the following websites SWACO www.swaco.org and Renewco at www.renewcogas.com.
Contact: Jodi Andes
SWACO Chief Public Information Officer
614-801-6416 – Office
614-623-3150 – Cell
Annette Martinez
Renewco
630-388-2781 - Office
630-918-2321 - Cell
Sign up to receive our free Weekly News Bulletin