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October 7, 2008
Plans for a gasification plant in central Alberta are underway. Considerable negotiations have occurred and the final decisions regarding City commitment are now being considered by Council.
1. What is gasification of municipal solid waste?
Gasification turns solid waste into energy-rich fuel that can be used to generate electricity from a renewable source.
2. When will the gasification plant be operational and where will it be located?
The proposed location is the Horn Hill Waste Transfer site in Red Deer County near Penhold. Plasco has committed to have the plant constructed no later than 2011 and fully operational no later than 2013 .
3. How is The City moving forward with plans to supply waste to the new gasification plant?
On August 29, 2008 the Central Waste Management Commission, which includes The City of Red Deer and Red Deer County, entered into a twenty year agreement with Plasco for the disposal of waste through a new gasification plant.
The City must now consider entering into a member agreement with the commission in order to be part of the project and supply waste to the plant.
The key points of the agreement are as follows:
- 20 years term, termination prior to term only with consent of both Commission and Plasco.
- Commission may assign the Agreement to Plasco in the case of a breach of the Commission’s obligations as a result of the City, Plasco could in turn assign the Agreement.
- The City, Commission, and Plasco must consent to any amendments to the Membership Agreement.
- The City is committed to supplying and paying Tipping fees for 14,000 tonnes per year to the Plasco plant initially, and escalating at approximately (10%) of the City generated annual volume over the term.
- The maximum startup tipping fee shall be a maximum of $65 per tonne plus a maximum 10% Commission fee. The tipping fee shall be escalated annually by ½ of the Alberta CPI. The tipping fee could only exceed this for Mandatory Cost Increases.
- The Agreement commits the City Waste Management Facility to be an Alternative Facility, and accept Commission waste during shutdown periods of the Plasco Facility. The City has the option to transfer an equivalent volume back to the Plasco Facility at a later date.
4. What will City Council consider approving on October 6?
City Council will consider approving a member agreement with the Central Waste Management Commission:
There are two possible outcomes:
- Council could make the decision to approve the member agreement based a 200 tonne per day supply confirmed with other municipalities.
b. Council could choose not to proceed with the member agreement,
5. Will a gasification plant in central Alberta eliminate the need for a City landfill?
It will not eliminate the need for a landfill because only about half of typical landfill-bound waste is useful in gasification. Items such as car parts, fridges, stoves, concrete and hazardous waste will still be taken to the landfill. However, gasification will help extend the life of the landfill due to the diversion of some municipal solid waste.
6. How will gasification of municipal solid waste impact The City’s recycling and blue box programs?
The City is committed to environmental sustainability through waste diversion programs such as the blue box program. Residents will see no change in how the blue box program runs.
7. What are the risks and benefits associated with gasification of municipal solid waste?
Environmental Impact: Gasification has the potential to significantly reduce Red Deer’s green house gas emission to the atmosphere. It is green technology that turns waste into usable energy that helps us reduce our environmental impact.
The plant is expected to process 200 tonnes of waste a day and turn that into enough electricity to power 200 average sized homes for 55 days.
Adoption of this method will not eliminate the need for a landfill but for every 10,000 tonnes per year diverted, the landfill life will be extended approximately three to four years. In addition, The City is required to meet both financial and environmental obligations with regards to continued operations of our landfill.
In other provinces across the country, regulations are making it difficult to site new or expand existing landfills. This direction change of legislation may eventually occur in Alberta too. The existing landfill, which was opened in 2001, was an onerous process and siting a new landfill in the future will be even more challenging.
Financial Impact: The City of Red Deer must be responsible with taxpayer’s dollars. Currently, the cost for this gasification method is higher than our current $41 per tonne at The City’s Waste Management Facility. Implementation of gasification has the potential to increase costs up to $65 per tonne. This means if Red Deer processed the proposed 14,000 tonnes of garbage, it would cost an additional $336,000 per year plus the transportation costs. The actual increase will be lower as the City tipping fee will increase between now and when the plant is commissioned.
8. Will Red Deer residents pay more for gasification of municipal solid waste?
There will be a minimal increase on residents’ household garbage collection bill. If The City commits to 10,000 tonnes, residents would see an increase of approximately 50 cents to 75 cents per month depending on whether the gasification plant cost is supplemented by government grants.
9. How much funding has The City invested in the project so far? Is there any financial commitment on The City’s behalf?
The City has not committed any funds to the project yet. If the member agreement is signed the maximum tipping fee that will be charged to The City is $65 per tonne (plus annual CPI increases); and the City will be obligated to supply the waste and pay for the associated tipping fees. However, there is no obligation, financially or otherwise, that requires The City to move forward at this time.
10. What research was conducted prior to entering a partnership for the gasification of municipal solid waste in Central Alberta?
The only other municipality to pilot the Plasco gasification system is Ottawa. Their system has not been in operation long; however, City of Red Deer representatives did visit the site in order to analyze their system and find out more about how it works. The Commission/Plasco Agreement is conditional on the successful commissioning of the Ottawa Pilot plant.
This site visit was conducted in order to gain a clear understanding of the short and long-term environmental impact, financial obligations and commitments required.
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For more information, please contact:
Paul Goranson
The City of Red Deer
Director of Development Services
403-342-8158
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