County, AlterNRG reach MOU on energy-from-waste plant

2009-10-15 / Front Page

By WES KELLER Freelance Reporter

Dufferin County Council and Calgary-based AlterNRG have completed a memorandum of understanding (MOU) for construction of a Westinghouse Plasma technology energy-from-waste facility at EcoEnergy Park (DEEP), and agreed to work toward a "definitive agreement" this year.

Under the terms of the MOU, Dufferin is completing a $200,000 feasibility study, which may be paid for by grants. NRG will seek outside investors, and the county will explore possible grant funding and a contract with Ontario Power Authority for electricity generated by the facility.

In addition to income generated through a power agreement with OPA, the facility would generate revenue from the supply of heat to the proposed greenhouses at DEEP.

Completion of the facility hinges in part on the sale of heat and power, as well as on the availability of feedstock and obtaining provincial approvals. Zoning is already in place.

County council voted last week to determine the terms, if any, under which Dufferin's eight municipalities would transfer waste management authority to the upper tier, but the resolution came only after a heated

exchange between the chairman of Community Development Committee and the mayor of Amaranth.

The motion, "that staff be directed to circulate a letter of enquiry to local councils to state what conditions would have to be in place for each municipality to support the County to take over responsibility for waste management," might seem to have been straightforward enough, but Mayor Don MacIver apparently wasn't viewing it so much as an inquiry as an effort to commit everyone to the proposed energy-fromwaste facility.

Noting that Dufferin had sought proposals for a 25,000 to 50,000-tonne facility, the Amaranth mayor said the county itself "can't come close to that," and demanded, "Tell us, where is the garbage coming from?"

Shelburne Mayor Ed Crewson, chairman of the committee, responded that the purpose of the inquiry was to help the county determine costs, but "if considering waste from Simcoe, and if Amaranth and Melancthon (dumps) are closed, where does that leave you?"

Citing the motion's preamble, "whereas municipal landfill sites are both an asset and a liability, the County of Dufferin is prepared to enter into negotiations to determine the value of all municipal landfill sites, including those already closed, based on existing capacity, decommissioning and monitoring costs and how unused capacity may be utilized," Mayor Crewson asked whether Mr. MacIver would agree that the dumps are "an asset and a liability.

"Shelburne's landfill is a liability," he said. Noting that although the dump was closed almost 20 years ago, he added: "We have to pay money year after year. That is a liability."

He said the motion "is not designed to push something through, nor to steal anything that is yours," and marvelled "at the distrust. This was prompted by good faith and open discussion. All you have to do is say 'No.' "

He said it is necessary to assess potential volumes to calculate costs of operating the proposed facility. (He did not mention that the County would need to know how much excess capacity it would be able to offer other municipalities such as Simcoe County.)

Since negotiations between the county committee and Alter NRG have included legal counsel they have all taken place behind closed doors. The County would be a co-proponent of the facility, according to earlier proposals, but it wasn't immediately determined whether NRG would be involved in operating the facility or would merely supply the technology. Alter NRG owns the Westinghouse Plasma technology, the system already used by a Plasco installation at Ottawa.

Plasco, meantime, had at one time offered to design, build and operate a thermal plant at DEEP but in other respects did not meet County requirements. According to a CBC report last spring, Plasco had temporarily laid off 57 employees while seeking funding for some major facility developments. At the time, Plasco blamed the economy.

Apart from the exchange between Mr. Crewson and Mr. MacIver, the dump discussion was quiet. Orangeville Deputy Mayor Warren Maycock said he was looking forward to comments from the municipalities, and Mono Mayor Lorie Haddock said she also might have misunderstood the motion on first reading it.

"It's the way it was worded," she said.

Although the motion passed 26-2, with only the Amaranth representatives opposing it, any change in governance would require a triple-majority vote.

In a press release disclosing the MOU, Alter NRG quoted Mayor Crewson as saying selection of the firm to provide the plasma technology for the energy-from-waste facility "is a major step forward in creating a sustainable Dufferin County and thereby protecting our environment for our children's benefit."

The release said Alter NRG "is the initial operator however is intending to find additional partners in the project to have a minority working interest. The capital contribution by Alter NRG is expected to be recovered on the project through margins from engineering and equipment sales.

"Dufferin and Alter NRG will advance the plant design and initialize project financing and permitting during the next six to 12 months. Construction is expected to start in late 2010 to have the plant fully operational by late 2012."

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