The Metropolitan King County Council today unanimously approved an amendment to the agreement for sale of landfill gas at Cedar Hills Landfill. The new agreement will allow processed landfill gas to be sold directly to the energy market, paving the way for creation of a landfill gas operating facility that will produce a local supply of pipeline quality natural gas.

“Converting the gases generated at Cedar Hills landfill into a renewable energy source makes good ecological and economic sense,” said Councilmember Larry Phillips, Chair of the Growth Management and Natural Recourses Committee and lead sponsor of the legislation. “Getting serious about addressing the climate crisis requires creative thinking, superb resource management, and participation of both the public and private sectors—the Cedar Hills landfill gas project embodies all these elements. The changes to the Cedar Hills landfill gas sale agreement harnesses existing market forces for a more viable project.”

The Cedar Hills landfill generates approximately 13 million cubic feet of landfill gases per day. In 2003, the Council authorized sale of surplus landfill gas generated at Cedar Hills Landfill to a firm known as Bio Energy. The King County Solid Waste Division entered into project agreements with Bio Energy in 2004 which contemplated conversion of landfill gas into electricity. However, development and operations of a landfill gas project have not moved forward.

A Virginia firm known as Industrial Power Generating Company LLC, or Ingenco, has proposed purchasing the interests of Bio Energy at Cedar Hills in order to create a landfill gas operating facility there that will process landfill gas for direct sale to the energy market, rather than converting it into electricity. Ingenco currently has six landfill gas operating facilities and four more under construction. The Council’s action today amends the landfill gas agreement to allow for direct landfill gas sale. Ingenco has targeted beginning operations in November 2008.

The modified agreement allows for the lease of a portion of the landfill not to exceed 2.5 acres. King County will retain all carbon credits and benefits from the landfill gas project and will receive estimated payments of over $1.3 million per year from landfill gas purchases, property, and B & O taxes.

Read more about this legislation on the King County Council’s LEGISEARCH system and type in 2007-0366