13 December 2011
A 20 year deal between waste to energy gasification specialist, Plasco Energy Group and the City of Ottawa to dispose of up to 300 tonnes of the city’s waste each day has received the full backing of Mayor Jim Watson, according to a report in The Ottawa Citizen.
Under the terms of the yet to be finalised contract, a “framework” has been released that would see the city would pay $9.1 million a year to Plasco, if it takes those 300 tonnes a day – 109,500 tonnes a year, or roughly a third of Ottawa’s household waste.
“The agreement, in my opinion, is a good deal for taxpayers and it’s also a good deal for the environment and I’m going to support it,” Watson is reported to have said. “Digging a hole and putting garbage in it in the 21st century just doesn’t make a whole lot of sense.”
The company is currently making efforts to commercialise its plasma gasification, which instead of using plasma torches directly on the waste uses them only to refine the gases released from the gasification of the waste.
Because of the city’s early support for the Plasco, it reportedly stands to receive payments if the company builds commercial plants elsewhere.
The 20 year contract is reported to have options to be extended to 40 years. Depending on how successful the company is a 40 year deal would cost the city between $400,000 and $950,000 a year more than the status quo of dumping most of its household waste in the Trail Road landfill.
However, the report said that that does not account for the eventual cost of finding a new landfill site is full. The city puts that cost at $250 million and Toronto recently paid $220 million to buy a private landfill for its own use.
Ottawa’s city government is said to estimates that under existing conditions, the Trail Road landfill would have to close in 2042, but the 300 tonne per day deal with Plasco would extend that to 2070.
Critics
According to CBC television News – which the covered the full day of questions by city councillors, the ministry, interested groups and citizens as the deal was recently passed by a margin of seven to one – critics of the deal have said the city should not pin its hopes on an unproven technology.
Some have questioned the potential impact that the facility could have on the city’s recycling rate. while Rod Muir of the Sierra Club of Canada is reported to have said he’s crunched the data from Plasco’s trial runs and has concerns.
Muir was at Ottawa City Hall to address councillors on the environment committee where he expressed his doubts about Plasco converting, what he calls, “spotty” test results into a reliable commercial operation.
“It has never worked successfully on mixed municipal solid waste,” Muir is reported to have. “It hasn’t here either…It has never worked anywhere.”
However, aware that Plasco’s process has never been deployed at a full scale permanent facility that runs to a steady schedule, Watson is reported to have said that he’s satisfied that the contract contains enough protections for Ottawa if Plasco can’t do what it promises.
“At the end of the day, if the process doesn’t work, that’s Mr. Bryden (CEO of Plasco) and Plasco’s problem, it’s not the taxpayers’ problem,” added Watson.
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