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Hastings Council takes stake in gas to energy plant

July 11th 2014

Hastings Council takes stake in gas to energy plant

Hastings District Council has signed an agreement which will see it take a 40% stake in a Gas to Energy project.

The Gas to Energy project which is under construction at the Omarunui Landfill near Hastings is a collaboration between Napier City and Hastings District Councils (landfill owners) and Pioneer Generation Limited. The project will see the methane gas produced from the waste material, sold to drive a 1Megawatt power generator and is expected to be operational in the last quarter of 2014.

The landfill is jointly owned by the Hastings District and Napier City Council’s and managed by Hastings District Council under the governance of the Omarunui Refuse Landfill Joint Committee. The sale of the gas will provide income for the landfill of close to $70,000 per year and the power will be sufficient to supply around 1000 homes.

Hastings Mayor Lawrence Yule says “Council retained an option to purchase a share in the project once a satisfactory business case had been developed. The documents have now been signed and the Council will take a 40% share in the $1.8m development at a cost of $744,000.”

Lawrence Yule says “I am pleased that we have been able to enter into an agreement with Pioneer. This project presented Council with an opportunity to work with the private sector in a way that will ultimately benefit both parties.”

“Turning the methane gas into electricity makes good environmental sense, and has the potential to be financially beneficial to our ratepayers. The energy plant will also improve the security of electricity supply to Hawke’s Bay.”

ENDS

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