PUBLIC-PRIVATE PARTNERSHIPS FOR GAS UTILIZATION SYSTEMS IN THE REGION OF WATERLOO Linda Churchill, Waste Management Region of Waterloo April, 2010

1. PUBLIC-PRIVATE PARTNERSHIPS FOR
GAS UTILIZATION SYSTEMS
IN THE REGION OF WATERLOO
Linda Churchill, Waste Management
Region of Waterloo
April, 2010

2. PRESENTATION AGENDA
 Landfill Gas Collection Systems
 Rationale for Private Sector Involvement
 Request for Proposal Process
 Successful Proponents and Utilization Details
 Benefits of Collecting & Utilizing Landfill Gas
 Key Points in the Agreements with the Private Sector
 Waterloo Region’s Experience with Public-Private Sector
Partnerships

3. WATERLOO WASTE MANAGEMENT SITE

4. LANDFILL GAS DETAILS
 Causes Odours
 Potent GHG - over 20x the Negative Impact of
Carbon Dioxide
 Landfills Account for 25% of Manmade
Methane Emissions
 Explosion Hazard under Certain Conditions

5. Landfill Gas Composition
6%
39%
55%
Methane Carbon Dioxide Nitrogen

6. Waterloo Gas Collection System
 Initially installed in 1995
 Several System Expansions
 103 Vertical Wells & 12
Horizontal Trenches
 Draw Placed on Well Field
 Avg. Flow of 2,000 cfm
 Enclosed Flare
 Total Capital Cost of $6
Million

7. Cambridge Gas Collection System
 62 Vertical Wells, 5
Horizontal Collection
Trenches & 18
Vertical/Horizontal
Disposable Wells
 Draw Placed on Well
Field
 Avg. Flow of 500 cfm
 Enclosed Flare
 Capital Cost of $1.5
Million

8. Rationale for Gas Utilization & Private Sector
Involvement
 Recognition of a Potentially Valuable Resource
 Limited Region Budget for Energy Resource Development
 Realization that the Utilization Project Is Outside The
Waste Management Scope
 Relevant Technical Experience Outside of Region
 Potential to Offset the O&M Costs and Capital Cost
Incurred by the Region
 Reasonable to Pursue Private Sector Utilization

9. Request for Proposal Process
 RFP’s Issued for Waterloo in 1994 and in 1995 for
Cambridge
 Evaluation Criteria Included Environmental
Considerations, Experience, Revenue for the Region,
Technology
 Region Evaluated Proposals
 All Proposals Viable, Selection Based Upon Financial
Considerations
 Regional Council Approved Proponent
Selection

10. Successful Proponent for Gas Utilization at the
Waterloo Landfill
 Toromont Energy Ltd
 Generates 4.2 MW of
Energy
 Royalty Paid to the
Region on a Sliding Scale
 Electricity Production
Began Sept. 1999
 Capital Cost Over $7
Million
 Emission Credits belonged
to Toromont & Toromont
sold to OPG

11. Successful Proponent at the Cambridge Landfill Site
 Gerdau Courtice Steel
 Replacement for Natural
Gas
 Payment Based upon
Energy Content
 Start-Up Began Sept. 1999
 Capital Cost of Approx.
$2 Million
 Region Retains Credits

12. Benefits of Collecting and Utilizing Landfill Gas
 Reduces Odours
 Reduces Migration of Explosive Gases
 Reduces Greenhouse Gas Emissions
 Uses an Energy Resource otherwise Flared
 Offsets Energy Production by Other Means - Fossil Fuels
 Revenue Generation Mechanism for the Region --
$350,000 in 2007 to Est. $800,000 in 2010
 Revenue Used in the Operation & Expansion of Gas
Collection Systems

13. Key Points in the Private Sector Agreements
 Proponent Responsible for Design, Construction, O & M
of Facility
 Approvals the Responsibility of the Proponent
 Region Does Not Guarantee Gas Quality or Quantity –
Gas Collection Operated for Odour Control
 Region Retains Operation of the Collection Systems
 Region Agreed to Reasonably Cooperate with the
Proponent
 Terms of Payment Detailed in Each Agreement
 Terms of Agreement to Last 20 Years

14. Waterloo Region’s Experience with Public-Private
Sector Partnerships
 Recognition of Feasibility of Utilizing Landfill Gas as
an Energy Resource
 Practical to Have Private Sector Develop the Resource
 Request for Proposals Issued in 1994 and 1995
 Agreements Signed in 1998
 Win-Win Project for the Public and Private Sector as
well as the Environment
 Revenues Generated Have
Offset O&M Costs
 Reduced Greenhouse Gas
Emissions from Landfills

15. Conclusion
" Toromont’s relationship with the Region has been
awesome. Region recognizes the benefits of a
strong business relationship, has been very
accommodating with respect to contract
amendments, employs dedicated, competent
people, and reinvests its royalty payment back into
the landfill collection system which further
benefits both Toromont and Region. Royalty
payment contract is a successful approach. It has
permitted each party to do what they do best. "
Lou Colangelo, Toromont Energy, April 2010