Zeeland will build generating plant near landfill to use methane for electricity

The Zeeland Board of Public Works will soon use electricity produced by methane gas from Auburn Hills Landfill to supplement its renewable energy options.

The move comes after a city decision to put wind turbines in Holland Township.

The Zeeland City Council Monday, Aug. 18, approved a 15-year contract with North American Natural Resources Inc. to build a generating plant near the Zeeland Township landfill at 56th Avenue and Adams Street. The electricity will be sold to the city utility.

The council also approved spending about $1 million to construct a three-mile underground electrical line extension to the plant, and an additional $300,000 for interconnections at the site.

The project will increase customer rates by about 3.5 percent above the already-expected 3.5-percent rate hike over the next several years, said BPW General Manager Dave Walters. He said that a 2.5 percent annual increase in the cost of the electricity generated from the methane plant represents a lower increase than that of other energy resources. It results in a net savings in later years of the contract.

“We think over the life of the contract, it will be a very attractive resource,” he said.

Construction of the plant will span the next 10 months, with 1.6 megawatts expected to be operational by June 30, 2009, increasing to 4 megawatts by 2012.

The city will pay $70 per megawatt-hour for the electricity in 2009, rising 2.5 percent annually through 2015, when an additional 2.5 percent will be added to the price, which will then continue to rise by 2.5 percent through the life of the contract, Walters said.

The measure comes in response to anticipated state legislation requiring electric utilities to supply 10 percent of system needs from renewable resources by 2015.

The contract with North American Natural Resources, coupled with a plan to build two 50-kilowatt wind turbines by early spring 2009, will provide the BPW with 9 percent of the required renewable portfolio by 2013, Walters said.

Randy Dozeman, district manager at Waste Services Inc., which owns the landfill, said the site has about 22 years of methane capacity at current usage volumes.

Methane gas is naturally produced by landfills during the decomposition of refuse.