The Sun Times
January 7, 2012
Provincial rules wouldn't let Meaford burn its municipal trash in the energy-from-waste plant as proposed by Partners Energy Group.
Energy Ministry spokesman Paul Gerard confirmed in an e-mail the province's Feed-in Tariff program, which offers power agreements at guaranteed prices, disqualifies projects which burn municipal waste.
"Under the existing FIT program rules, energy-from-waste facilities (i.e. electricity generated from the incineration of municipal solid waste) are not considered an eligible technology. Renewable biomass, biogas and landfill gas are applicable but have specific eligibility requirements under the program rules."
But such projects could potentially be approved by following other routes, he added.
Tim Butters, a spokesman for the Ontario Power Authority, offered further explanation about why burning municipal trash disqualifies it from a FIT contract.
"A renewable energy source means an energy source that is renewed by natural processes including wind, water, biomass, biogas, biofuel, solar energy, geothermal energy and tidal forces. A fuel is not considered renewable if it does not meet these criteria, regardless of the process by which (it) is treated and burned.
"Municipal waste is specifically excluded from being defined as renewable biomass under Ontario's Electricity Act."
PEG is seeking to partner with Meaford to pursue a 20-year power purchase agreement with the OPA. Meaford has yet to sign a memorandum of understanding which PEG wants to seek a FIT contract.
Partners Energy has offered to burn Meaford's garbage, among other feedstock including wood waste, to make electricity in its maximum 10-megawatt power unit. It promises to flat line Meaford's disposal costs and pay it 51% of net profit, estimated by the proponent to be between $200,000 and $750,000 annually.
But Rob Forte, Partners Energy project manager, announced Thursday the energy-from-waste project was on hold until it's clear how it will be affected by the Ontario Power Authority's review of the FIT program.
The ministry's website says the review is expected to result in "reduced FIT prices for future contracts." It could include new and emerging technologies, among other aspects studied in the review.
Forte said Thursday the review could have a big impact on the PEG project. He's been counting on receiving nearly 14 cents per kilowatt-hour. The review leaves too many unanswered questions, he and Meaford CAO Frank Miele said Thursday.
hey postponed indefinitely a municipal public meeting about the proposal scheduled for Tuesday. But a newly organized protest group, Meaford Against Gasification Group, was scheduled to meet Friday night.
Butters acknowledged that energy-from-waste projects have been granted contracts in Ontario. One recently was in Durham Region.
"Only proponents with technologies that have completed the Ministry of the Environment Pilot or Demonstration Project (PDP) initiative are eligible to receive energy from waste contracts. Contract terms are to reflect a reasonable cost for ratepayers, the value of the electricity generated, as well as other economic inputs," Butters' e-mail said.
The Durham and York regions' project in Clarington, Ont., was allowed by a December 2008 ministerial directive which called for the OPA to negotiate with the regional municipalities for their facility, he said. It obtained an environmental certificate of approval in June.
That $250-million, 17.5-MW energy-from-waste plant will be owned by the municipalities and is to open in 2014, according to an August news release from their partner, Covanta Energy. The plant will use 140,000 tonnes of trash after recycling and composting annually. read more
