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County generates electricity from methane gas at landfill Workers at the Monmouth County Reclamation Center in Tinton Falls have begun turning methane gas - produced naturally from decomposing waste - into money-saving electricity to offset costs associated with operating the landfill'sMaterials, Processing and Recovery Facility (MPRF).
"The county now has the ability to generate electricity on its own," Freeholder William C. Barham said. "We produce power to supplement the county's landfill operation demands during the day, and a series of lines connected to JCP&L allows us to send power back to the grid at night. The result is a credit for the daily power consumed from JCP&L in excess of what the county produced. The theory is the county will be producing exactly what is needed to fully operate our MPRF. The savings to the county is expected to be between $1 million and $1.2 million a year."
According to a press release, the county has also begun receiving revenue fromthe sale of renewable energy certificates, which the companies earn by demonstrating an ability to generate power without burning fossil fuels. GFS Energy LLC, which operates a separate gas-to-energy facility at the Tinton Falls landfill, was awarded the certificates and sold them in the marketplace. Under a longstanding agreement with GSF Energy, the county is entitled to a 50 percent share, which has so far amounted to $214,000.
Monmouth Countywas among the first counties in New Jersey to explore harnessing methane gas. In 1995, the county began leasing space at the landfill to GSF Energy.Until 2006, the company had been paying the county $250,000 a year to operate its landfill gas recovery facility. GSF Energy operates similar landfill gas recovery facilities across the United States.
In 2006, the county renegotiated its contract with GSF Energy and allowed the company to capture all of themethane gas produced at the landfill - except for the amount needed to power the county's MPRF operation. The county now receives amonthly royalty calculated as a percentage of GSF Energy's gross revenues from the sale of output from the reclamation center, with a guaranteed minimum royalty of $50,000 per month. Also, GSF Energy has assumed responsibility for all capital improvements, operation and maintenance costs for the gas facilities.
Under the terms of the contract with GSF Energy, Monmouth County retains the right to use a small portion of the methane gas for its own electric generating station. Earlier thismonth, the county installed its own generator at a cost of $3 million, but the county will receive a rebate of $800,000 from the state Clean Energy Program, for a net cost of about $2.2 million, according to the press release.
"By producing enough electricity to power our own operations at the reclamation center, the county will save up to as much as $1.2 million a year on its electric bill," Barham said. "It will take about two years for the generator to pay for itself, but that savings will continue for many years to come."
The generator began operating Dec. 7.
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