By Pam Wright
Local Journalism Initiative Reporter
Chatham-Kent’s waste-to-energy project is a go.
The $160-million initiative, that will see the municipality partner with Greenfield Global Inc., was passed by council 14-4 at the April 27 meeting, with councillors Michael Bondy, Amy Finn, Rhonda Jubenville and Alysson Storey voting no.
Council spent more than two-and-a-half hours probing the issue that included a lengthy presentation from staff.
Councillors peppered chief financial officer Gord Quinton with questions throughout the session, mainly related to risk to taxpayers and around what some claim was as a lack of public input.
Patterned after a Greenfield Global anaerobic digester in Varennes, Que., the Chatham facility will convert industrial, commercial and institutional organic waste into renewable natural gas to be sold. In addition, digestate, a byproduct of the process will be sold as a high-quality, sustainable biofertilizer.
The public-private partnership will see Greenfield own 60 per cent, with Chatham-Kent owning 40 per cent.
How the Bloomfield Road project will be financed was spelled out in great detail.
Council heard repeatedly the project is an “investment” for Chatham-Kent. The venture is “conservatively” expected to reap $123 million in dividends over the next 30 years, Quinton said, providing a revenue stream for future infrastructure projects while offsetting wastewater rates.
“This is an investment on our balance sheet,” Quinton told council, stating the initiative will be of “enormous benefit” to all of Chatham-Kent.
The federal government is stepping up with a total of $59.5 million to help fund the project. This includes close to $41 million in grants and $19 million in low-cost loans to be paid back over 10 years.
The province is providing a $25-million loan as well, to be paid back at 0.5 per cent over 15 years, and a $35-million loan is being procured through a commercial bank to be paid back over 10 years.
The overall cost of $160 million includes $23.5 million in contingency and cost escalation funds, Quinton explained. Chatham-Kent’s equity investment is $16 million, with Greenfield Global contributing $24 million.
To date, Chatham-Kent has spent around $2 million in preparation. In February of this year, council approved the creation of the Municipal Services Corporation (MSC), needed to allow Chatham-Kent to borrow from Infrastructure Ontario.
Staff said the project is unique as it will be built on Chatham-Kent Public Utilities Commission land adjacent to Greenfield Global, allowing for the seamless piping of product. As well, PUC general manager Darren Galbraith said the build will help offset $25 million in costs associated with sludge drying fields and other maintenance.
Along with creating temporary construction jobs, 30 full-time positions will be created when the facility is operational in 2029.
Four deputations were presented to council at the meeting. Chatham-Kent Agricultural Advisory Committee chair Jay Cunningham, and Chatham-Kent Chamber of Commerce president Rory Ring both spoke in favour of moving the project forward.
In his comments, Ring said the chamber supports public-private partnerships, noting revenue from the project will allow future councils to invest in other infrastructure projects.
On the flip side, Chatham residents Larry Hutchins and former provincial MPP Rick Nicholls asked for a postponement to address “red flag” concerns.
An independent assessment of the project by consulting firm Deloitte stated the project is beneficial for Chatham-Kent, recommending it proceed.
