At yesterday’s budget workshop meeting, New Hanover County commissioners heard a plan to capitalize on fumes coming from the public landfill on Highway 421.
According to Joe Suleyman, director of the recycling and solid waste department, the county received five bids to capture, process, and resell landfill gas.
After six months of negotiating, the best offer came from Archae Energy, a BP company. The proposed contract includes $300,000 in fixed annual payments to the county, with increases tied to the Consumer Price Index.
Archae would also pay a pro-rated amount based on the amount of extracted gas: $3.08 per BTU. This would be contingent on the quality of gas coming from the landfill, but Suleyman said he did not think that would be an issue. County staff estimate this could net the county on between $900,000 and $1.3 million annually.
Under the contract, Archae would also be responsible for installing their own facility, pipelines, and connecting to Piedmont energy on Highway 421. The county would donate around 2 acres of its landfill parcel to the company.
The contract would be for twenty years with the option for two 5-year extensions. Staff believes the arrangement could help offset revenue shortfalls at the landfill that might otherwise require an increase in tipping fees.
Suleyman called the deal the "most exciting proposal" he'd been able to present to commissioners in his decade-plus time with the county.
Commissioners will consider the deal on Monday at their regular meeting.
