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Selling landfill gas could bring the city of Fort Worth up to $5 million a year


Selling landfill gas could bring the city of Fort Worth up to  million a year

City officials estimate that Fort Worth could earn up to $5 million annually from the sale of natural gas from the Southeast Landfill.

At a work session on August 6, Cody Whittenburg, the city’s director of environmental services, updated City Council members on ongoing efforts to develop a renewable natural gas facility. After more than a year of planning, Whittenburg’s team has recommended a partnership with Archaea Energy, a Houston-based renewable natural gas producer and subsidiary of BP.

Landfill gas – made up of about 50% methane and 50% carbon dioxide – is created when organic material, such as food scraps, decomposes. Carbon dioxide and methane are two of the most common greenhouse gases contributing to global warming, according to the U.S. Environmental Protection Agency.

Republic Services, which operates Southeast Landfill, already captures gas in the landfill’s liner and burns excess natural gas into the atmosphere in a process known as flaring.

“Flaring is always a temporary, makeshift solution until you can capture sufficient quantities to sell on the market,” Brandon Bennett, the city’s former director of building codes, told the report last year. “It’s certainly a waste of money to flare it, and the best thing for the environment is to capture the gas and reuse it.”

To convert landfill gases into renewable natural gas, Whittenburg said, moisture and contaminants would need to be removed to make the gas usable for generating electricity and fuel or for sale to other producers.

Development of the plant will take 18 to 24 months, Whittenburg said. Under the city’s agreement with Republic, all revenue from gas sales would be split equally between Fort Worth and the waste company.

It is estimated that once the plant is operational, the city would generate annual revenues of $2.5 million to $5 million. These funds could then be used to finance environmental projects, he said.

“We’re really excited to see where this project goes,” Whittenburg said during the meeting. “We’d also like to establish a capital fund to secure either a future landfill or other municipal solid waste facility and also hopefully generate additional revenue to support the acquisition and maintenance of green space or perhaps some other environmental programs, among other potential uses.”

City council members will consider a partnership with Archaea Energy during their Aug. 13 meeting. If approved, the service agreement would require Archaea to pay the Republic and the city millions in development fees, on the condition that the company collect a 30% royalty on gas sales.

Archaea will pay $100,000 upon completion of the agreement, half of which will go to the city. If the agreement is approved, the company will begin developing the site before the end of the year.

Kevin Vu recently graduated from the University of Texas at Austin and is a contributor to The Fort Worth Report.

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