Under an agreement with the City of Sioux Falls, POET Biorefining – Chancellor will use methane generated from the Sioux Falls Regional Sanitary Landfill to provide energy for ethanol production.

According to POET, the methane will initially displace 10 percent of the ethanol plant’s natural gas usage, increasing to 30 percent in 2025 as additional methane is generated. The methane, which is generated when municipal solid waste decomposes, will be transported by a 10 mile low-pressure pipeline. Construction is expected to be completed in Q2 2009. Displacement of natural gas will decrease CO2 emissions at the plant by 26,445 tons in 2010, the first full year that the system is operational.

Sioux Falls Mayor Dave Munson said, “This is truly a win-win for the City of Sioux Falls, POET, our community and customers of the landfill,” Munson said. “The City feels fortunate to be able to make a significant impact on the environment and improve revenue at the Landfill at the same time.”