Work continues to determine if a new waste to energy facility in Chatham is going to be viable in the long run.
The Municipality of Chatham-Kent wants to partner with Greenfield Global in Chatham to convert industrial organic waste into renewable natural gas and meet its climate change goals and priorities, including waste management.
A staff report going to council Monday night said the project "remains viable", is ready to move to the next stage of design and engineering, and is looking for the go ahead.
That stage will cost $1.3 million now and another $1.4 milllion in the Fall to complete, if it gets the green light.
Administration said $200,000 has already been set aside for consultants.
If an agreement is reached down the road, the municipality will own 40 per cent of the 90,000 to 120,000 tonne anaerobic digester and Greenfield will own the rest.
"Greenfield Global currently operates a similar plant in Varennes, Quebec and has been very successful in serving over 30 local municipalities in the area south of Montreal. A plant in ChathamKent will provide significant environmental benefits and outcomes," wrote Chief Financial Officer and Treasurer Gord Quinton in his report.
The financial plan will be discussed during a closed session before the council meeting Monday evening, but Quinton has already signaled the project will be a profitable business with an equity investment of approximately $15-$20 million to be split between the municipality and its Public Utilities Commission (PUC) for 40 per cent ownership of the project.
"It is expected the project will be profitable after the initial startup period of operations and provide an additional source of revenue for the Municipality and PUC for decades to come, while assisting to reach expected climate change targets and reducing waste being landfilled," Quinton wrote.
If approved, the anaerobic digester will be built on Bloomfield Road in Chatham across from Greenfield Global.
