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More “Green Energy” For Area Industry

08 Aug 2006

Morgantown, PA (August 8, 2006) – BFI’s Conestoga Landfill will soon be providing several area businesses with landfill methane gas as an alternative energy source. The project is modeled after the EPA and Governor Award-winning project at the Lanchester Landfill, located in Chester County.

Landfill gas is generated during the natural decomposition of solid waste. Currently, approximately 7,500 cubic feet per minute of gas is being flared and burned off at the Conestoga Landfill. The gas, which is largely comprised of methane, is a viable source of renewable energy and can be put to productive use by large industrial customers. As the landfill continues to grow and possibly expand, greater quantities of available energy can be produced. Granger Energy of Morgantown, LLC currently has specific plans to develop a project that will allow this valuable resource to be transported and utilized by numerous area industries, reducing the area’s dependency on traditional fuels.

The landfill gas will be transported from the Conestoga Landfill via two separate pipelines that will be designed and constructed specifically for low-pressure landfill gas service. The first pipeline will parallel an existing power line right-of-way and interconnect with the current Lanchester Landfill gas pipeline (located approximately 9 miles away) to initially serve three additional industries in the New Holland area. “By joining the two pipelines, we will be able to add new customers while also providing our current customers with additional landfill gas for future growth,” states Joel Zylstra, Chief Operating Officer, Granger Energy of Morgantown, LLC. The second pipeline will directly interconnect with a near-by industrial facility located approximately three miles away.

Granger and UGI Utilities have come together on this innovative project. Granger, an industry leader in the field of alternative energy resources, will be developing the gas production, processing, and utilization portions of the project. UGI, a local natural gas utility with over 120 years of experience in delivering energy to Pennsylvania households and businesses, will manage the construction of the pipeline portion of the project and will provide on-going transportation services for landfill gas derived from the Conestoga Landfill. UGI will also continue to be the provider of back-up natural gas service to ensure a reliable and safe supply of energy and to maintain continuous operation to the users of the renewable energy. “This unique partnership demonstrates UGI’s commitment to the community in which we serve and to the development of creative energy solutions,” stated Peter Terranova, Vice President of Operations for UGI. “We are proud to work with Granger on this project.”

Following the design and permitting phases of the project, Granger will begin construction on the Landfill Gas Processing Facility that will be located at the Conestoga Landfill. The high-tech facility will house equipment that will compress, filter, and dry the landfill gas prior to sending it down the pipelines for industrial use.

Following the final design and routing for the pipeline(s), UGI will procure the necessary easements and other approvals prior to beginning the construction phase of their portion of the project. It is anticipated the construction of the pipeline(s) could commence as early as October of 2006 with estimated construction duration of four to eight months.

There are many environmental benefits associated with the direct-utilization project including the conservation of traditional natural resources such as oil. “After the two new pipelines begin transporting landfill gas, the energy equivalent of approximately 100,000 barrels of oil will be conserved each year,” shared Zylstra. Using landfill gas for energy also reduces the quantities of
landfill gas that would have to be flared. The predicted reduction of flared gas as a result of the utilization project will result in the environmental equivalent of removing over 8,000 vehicles off the road.

The project will also provide a significant economic boost to the local area through the creation of a lower cost energy source, providing a competitive advantage for industries in the area. This will help ensure local jobs and provide incentives for industries to consider siting new facilities in the area. The direct spending during construction will also provide local economic stimulus to the community with locally-purchased materials (estimated to be millions of dollars) and the employment of local contractors.

On a smaller scale, Granger’s parallel development plan involves the installation of a small 600 kilowatt engine-generator to generate green power for the landfill operations, the Landfill Gas Management System and could provide a small amount of power for sale on the energy grid that would be consumed by the public. The primary benefit of this project would be the availability of two sources of electricity to service the Landfill Gas Management System and other critical landfill systems. Granger received the permit to install the engine-generator from DEP in April of 2006 and currently has plans to complete the installation of the unit once the remaining permits and approvals have been granted.

Based in Lansing, Michigan, Granger was founded in 1959 as a commercial construction company and has evolved into a comprehensive waste management and renewable energy organization. Granger has been a landfill owner and operator for more than 30 years, and has successfully developed over a dozen landfill gas utilization projects in Michigan, Indiana, Ohio, Alabama, Pennsylvania and Utah. Additional information about Granger is available at www.grangernet.com.

UGI Utilities’ headquarters are located in Reading, Pennsylvania. UGI currently delivers natural gas to more than 307,000 customers in eastern and central Pennsylvania. The utility currently operates and maintains over 5,000 miles of pipeline. UGI is an industry leader in the safe operation of its pipelines, recently earning the prestigious American Gas Association Safety Achievement Award. Additional information about UGI is available at www.ugi.com.

For more information, contact Granger at (517) 372-2800 or UGI at (610) 736-5508.

Digital photos available upon request.