To

Mayor and Council

Subject

Resolution Authorizing the City Manager to negotiate a contract with Enerdyne Power Systems

Initiator

Ronald E Smith, Deputy Director of Public Works

Recommendation

The City Manager be authorized to enter into Contract Negotiations with \n \n Enerdyne Power Systems, Inc. in order to allow Enerdyne Power Systems, Inc, to \n \n develop, install and operate a Power Generation Plant using methane gas from \n \n MSW Landfills owned and operated by the Columbus Consolidated Government (CCG)

Approval

Pending

Background

CCG owns and maintains one active Municipal Solid Waste Landfill (MSW land),

and one closed MSW landfill that currently generate methane gas. Methane gas is

a harmful greenhouse gas when released into the atmosphere untreated. To

protect the environment, methane should be utilized or destroyed in an

environmentally safe manner or destroyed by burning. Since methane has similar

potential energy as does natural gas. The CCG has asked Enerdyne Power System

to determine whether the methane produced by the two landfills has a beneficial

use that would generate revenue. The determination has been made that a

beneficial use exists.

Analysis

Beneficial use of methane generated by our MSW landfills would protect the

environment and make good use of a renewable resource.

Financial Considerations

Enerdyne Power Systems will install gas extraction systems, methane powered

generators and control systems and make connection to the power gird thru an

agreement with the power company at no cost to the CCG. In turn the CCG will

sell gas to Enerdyne Power Systems to run the power generation plants and

receive revenue from the gas sold.

Projected Annual Fiscal Impact Statement

Enerdyne will form a Special Purpose Entity (SPE) to build, own, and operate a

Power Generation Project at no cost to CCG. Enerdyne will pay the CCG a Fee

based on Gas used in the Power Generation Plant. It is believed that a plant

that will generate between 1-3MW (megawatts) of power project can be installed.

Enerdyne Power Systems has determined that a project is viable with enough

power for approximately 1,500 +/- homes according to the EPA?s guidance.

Legal Considerations

The CCG will be required to install a gas extraction system for the active MSW

landfill (Pine Grove) within the next few years. There is already an active gas

extraction system at Schatulga Road MSW landfill but the system is old and

needs upgrading. A successful contract with Enerdyne will accomplish

Recommendations/ Actions

Council should approve the Resolution authorizing the City Manager to enter

into Contract Negotiations with Enerdyne Power Systems, Inc. to develop,

install and operate a Power Generation Plant using methane gas from City owned

MSW Landfills.

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