Meaford council has given CAO Frank Miele approval to enter into an agreement with a Belize based company that wants to partner with the municipality to build a 10 megawatt “waste to energy” facility.
Kevin Alexander of Partners Energy Group (PEG) made a presentation to council that outlined the proposal which would see a $40 million facility constructed on the municipal operations site on the 7th Line.
According to Alexander the Municipality of Meaford would own 51 percent of the operation however they won't need to contribute any funds to the start up or operational costs.
The proposal indicates that the $46 million required to fund the public-private-partnership (P3) start-up and initial operation costs would be raised primarily from $40 million to be borrowed from banks and other lenders. The proposed partnership would require a 20 year agreement between the municipality, PEG, and the Ontario Power Authority (OPA).
The facility will have the ability to convert a wide range of waste materials into electricity which will be sold back to the power grid.
Alexander claims that the high temperatures used in the process create a “clean burn” which will result in virtually zero emissions from the proposed facility. He also stated that the operation is expected to create 20 full time jobs at the facility which will operate 24 hours per day, seven days per week.
In order to feed the system 240 tonnes of bio-waste per day will be required. Concerns were raised by members of council who pointed out that Meaford only produces a fraction of the waste that would be required to operate the facility.
“It is certainly an interesting proposal,” said Deputy Mayor Harley Greenfield, “But I am still trying to get my head around the 240 tonnes per day.”
Councillor Barb Clumpus asked if the waste required could come from surrounding municipalities. Alexander said that would be up to the municipality and added that the waste could even come from mining existing landfills in order to extract the waste for burning at the facility.
Greenfield also expressed concern for the residential neighbours of the property on the 7th Line who would see an increase in large truck traffic passing by their homes.
Alexander indicated that feeding the facility would require six trucks per day to deliver the 240 tonnes of waste.
“Our first responsibility is to our residents, and in this case in particular to the neighbouring residents,” said Greenfield adding that he likes the concept, but would want to hold a public meeting to discuss the proposal with residents.
While Alexander stressed that the municipality would not be expected to contribute any funds to the project, the municipality will provide the land, and will provide $51,000 of the $100,000 fee that is required to make an application with the Ontario Power Authority (OPA) under the province's FIT program.
“The application for the BioPower Project requires a fee of $100K to be paid at time of submission of the application. The Municipality of Meaford will be required to contribute $51K as its share of the application fee. Funding for this project will be provided from the 2012 capital budget and if approved by Council, the project will be included in the 2012 capital budget and will be considered pre-approved and committed funding. The project will be treated as an un-financed capital expenditure at the end of 2011 and carried forward to the following budget year. If the application is not accepted by Ontario Power Authority (OPA), the application fee will be refunded, less a small administration fee, to the Municipality,” wrote CAO Frank Miele in his report to council.
Council approved the request to authorize the CAO to negotiate a memorandum of understanding with PEG, and to make the application to the OPA for the proposed project.
Only Deputy Mayor Greenfield voted against the request.
