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City Council August 2, 2011 Landfill Gas Project Presentation


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City Council August 2, 2011 Landfill Gas Project Presentation

  1. 1. City of San Angelo Update on Feasibility Study for Landfill Gas Project August 2, 2011
  2. 2. A Beneficial Use of San Angelo’s Landfill Gas <ul><li>Benefits to the City: Provides the City with a new source of revenue from the sale of the landfill gas </li></ul><ul><li>Benefits to the Local Economy: Provides a competitive advantage to a large local employer and provides jobs for local construction crews. </li></ul><ul><li>Benefits to the Environment: Destroys a potent green house gas, methane. </li></ul>
  3. 3. Objectives for Phase I of Study <ul><li>High level economic comparison of direct use project vs. electric generation project </li></ul><ul><li>Identify and meet with possible end users </li></ul><ul><li>Determine usage and willingness to enter into long term contracts at fixed prices </li></ul><ul><li>Work with the City to determine whether to move into Phase II of the Study </li></ul>
  4. 4. Phase I Results <ul><li>Both direct use and electric generation projects beneficial to City </li></ul><ul><li>City/Siemens approached Goodfellow AFB to negotiate electrical supply contract </li></ul><ul><ul><li>Selling the electricity at $.15/kWh provided the best economics for City </li></ul></ul><ul><ul><li>Goodfellow AFB was not willing to sign a 20 year contract at this rate </li></ul></ul><ul><li>Siemens has reviewed initial economics for direct use project </li></ul><ul><ul><li>Initial results look beneficial to the City </li></ul></ul><ul><ul><li>Preliminary discussions with end users have been favorable </li></ul></ul><ul><li>Next Step – City/Siemens determine what the price per MMBtu the City will need to charge for direct use project and approach end user to confirm commitment to buy gas </li></ul>
  5. 5. Sign Contracts and begin construction March 2012 Project Development Process Sign Letter of Intent With Siemens December 2010 Obtain initial commitment from end user of gas September 2011 City Council approval & Funding approval March 2012 Review Preliminary Financial Benefits with City August 2011 Start up and commissioning of Project January 2013 Negotiate contract terms with end use customer and Siemens March 2012 Siemens provides final price for project February 2012 City expands existing well field Nov. ‘11 to Feb ‘12