Power in a load of old rot

By ELIZABETH BINNING

Hamilton ratepayers will benefit from a new electricity scheme which transforms methane gas from rotting landfill rubbish into cheap power.

The scheme, which is expected to be running by the end of the year, will provide the council with cheaper electricity than is available through the national grid.

The Hamilton City Council spends about $3.3 million of ratepayers' money each year on electricity.

However, that bill could be reduced by up to 25 per cent when a generator, capable of transforming methane gas into electricity, is installed at the Horotiu Landfill.

Sally Davis, city council works and services general manager, said the electricity scheme was a joint venture between the council, WEL Networks and Green Energy.

WEL Networks and Green Energy will collect the natural gases then sell the electricity back to the council at a cheaper rate.

"This project will mean considerable saving to the council for up to 20 years and will reduce our draw on the national electricity supply."

Ms Davis said the venture not only transformed gas - which would normally be burned off into the atmosphere - into a useful resource but provided valuable savings to the ratepayer.

The council's energy manager, Martin Lynch, said it was a coincidence - but fortunate timing - that the sustainable energy project came as New Zealand was being asked to cut power use by 10 per cent.

Mr Lynch said the new generation plant would be able to supply enough power for the equivalent of 1000 homes each year, once it was running at full capacity.

It would not be used for homes, but would supply council buildings and services.

WEL Networks chief executive Mike Underhill said the methane project was the company's first renewable generation project and was made possible by changes to the Electricity Act.

He said the project would also benefit the rest of the country by reducing greenhouse gas emissions and reliance on fossil fuels.

The Horotiu landfill closes in 2006 but is expected to produce enough gas to keep the scheme running for 20 years.

* Dairy giant Fonterra is already making money out of the power crisis.

It has seven generation plants, with a total generation capacity of 163MW, powered by gas, diesel and coal. For the next three months the company will export more into the national grid than it uses.