A landfill in Dallas, Texas will soon be the source of renewable biomethane that will be burned to create electricity.
This story posted on the Environmental Protection Web site says that Clean Energy Fuels Corp. has inked a 15-year deal through its subsidiary, Dallas Clean Energy, to sell the biomethane produced at the McCommas Bluff landfill:
Beginning this month, the biomethane will be sold at fixed prices that increase in 2010 and 2011 and then remain fixed over the remainder of the agreement. The price for the “green” gas was not disclosed but represents a significant premium to the prevailing price for conventional natural gas.
The agreement calls for the sale of up to 4,500 MMBtus per day of biomethane from April 2009 through September 2010 and between 5,000–6,000 MMBtus per day of biomethane through March 2024. The actual volumes sold will depend on the gas recovery rates from the landfill and successful expansion of the gas processing facilities.
Shell Energy North America will act as the purchaser and supply the biomethane to the end-user—a utility that will use the biomethane in power generation to help meet applicable Renewable Portfolio Standards. Atmos Energy Corporation will provide intrastate transportation services from the gas processing plant.
“This gas sale agreement validates selling renewable biomethane as a valuable, low-carbon fuel. It provides Clean Energy with a sound, long-term revenue stream and also supports expansion of the plant’s production capacity for additional gas sales, including potential use as vehicle fuel,” said Andrew J. Littlefair, Clean Energy president and chief executive officer “Many of our largest customers are showing interest in biomethane for their fleet vehicles as it is one of the best alternative fuels to meet new Low Carbon Fuel Standards coming in California and other states.”
The McCommas Bluff landfill gas operation is among the biggest landfill gas operations in the country. Officials estimate it will continue to produce quality methane gas for 30 years after its closing in the year 2042.