Republic Services, Clean Energy Sign Renewable Biomethane Recovery Agreement for Tennessee Landfill
Expanding the availability of renewable natural gas, leading solid waste operator Republic Services, Inc. (NYSE: RSG) announced today an agreement to recover landfill gas from its North Shelby Landfill in Millington, Tennessee for multiple uses including as a vehicle fuel for its growing natural gas-powered fleet.
The agreement with Clean Energy Renewable Fuels, a wholly-owned subsidiary of Clean Energy Fuels Corp. (NASDAQ: CLNE), is the second of its kind between the two industry leaders, with the first, at Republic's Sauk Trails Landfill in Canton, Michigan, which is expected to come online in September 2012.
Clean Energy Renewable Fuels will build the high-BTU plant to process landfill gas, a natural byproduct of decomposition, and inject it into the US natural gas network. The gas may be compressed and distributed for a variety of different uses, including vehicle fuel and as renewable power or other industrial use customers.
During the first year of operation, the plant is anticipated to produce approximately 4 million diesel gallon equivalents of renewable natural gas fuel annually. If the landfill gas is used to fuel trucks, it could fuel about 260 trucks for a year. Production is expected to steadily increase to more than 5.7 million diesel gallon equivalents annually during the first 10 years of operations. Production is expected to begin in late 2013.
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