SWAB minutes 060508 - Laserfiche WebLink

Browse Search

Minutes - Regular Meeting Solid Waste Advisory Board June 5, 2008 Approved August 7, 2008 Barner replies " Yes " . Sallach says there are two sources of revenue - the carbon credits and the electricity [sales] . The carbon credits are an important aspect of this project. This landfill, due to its size, would be unregulated in terms of emissions, so capturing the gas is voluntary [thereby] making the carbon credits saleable at a significant value . The credits could vary from $5 or $6 per ton to $15 or $20, geared around the Kyoto agreement for reducing greenhouse gas emissions and this [carbon market] is a spin-off of that agreement. An independent party would establish the value of the carbon credits and the other component is the BTU value of the gas that can readily be indexed to the market value of natural gas . The carbon credits are more of a separate market. UNC and the County have agreed there will be a preferred distribution of revenue to the County prior to the operating costs or debt service being deducted . After the capital recovery period, the revenue sharing will then be fine-tuned between the County and the University . It is unique in that it captures the carbon credits and takes into account both parties sharing in the carbon credit value as it increases over time . UNC will provide capital construction costs to build the facility . These numbers are itude pro-forma and continuing to be refined, very preliminary in an order of magn but [at that level of estimating costs] we' re looking at an investment of $5 . 5 million with annual O &M costs of $365 , 000 averaged over the life of the facility . The capital recovery period may vary depending on how project is structured, energy costs, and carbon credit values . The project could have revenues of $1 million per year, versus now, where gas is now passively vented and turning these uncontrolled emissions into a revenue stream . The significant component of revenue is from the sale of carbon credits, a value that didn t exist six months ago . UNC and the County are on the front end of this . Without this, the project would not have been economically feasible as a straight electric generation project. The schedule has the agreement being presented in August. Phase one is to capture the gas and control emissions . Then flares will be constructed and carbon credits can be realized [from destroying the methane] during the first quarter of 2010 . Power generation could be added by the fourth quarter of 2010 . Pollock notes that Norwood raised concerns about the pipeline routing and generator set location . Is there anything else ? He notes his own concern about not using the heat for cogeneration because there is no heating load nearby . 5 . Solid Waste Management Plan Work Group - Next Steps Pollock states that the group has been active but recently dormant. The next round of the solid waste work plan that you all will see in late August/ early September will concern PAYT, the fate 10