News | August 16, 2005

Energy Systems Group Turns Landfill Into An Alternative Fuel Source

Johnson City, TN — Energy Systems Group, LLC (ESG) and the Board of Commissioners of Johnson City, Tennessee (city) have agreed to develop a landfill gas recovery project that is a major benefit to the local community. The project will provide a new source of revenue for the city, help alleviate pressure on community taxes, make available a local and alternative energy supply for several Johnson City companies and reduce air emissions for the area over the next two decades.

Under the agreement, ESG will purchase Iris Glen landfill methane gas from the city for the next 25 years, providing the community a new and long-term revenue stream. This supplemental revenue will enhance the city's financial, taxation and budget flexibility. Through this project, methane gas emitted at Iris Glen landfill will be processed to serve as an alternative fuel for the natural gas currently used by several local companies. ESG will develop, implement and manage the infrastructure to deliver the methane to the local VA medical facility and the Johnson City Medical Center (a 500+ bed primary care facility).

"The city gains incremental revenue from what was a waste gas and local business consumers receive a renewable fuel source that is lower in cost than their current supply," said Jim Adams, president of ESG. "This project is an ideal fit for Energy Systems Group and our vision to find opportunities that deliver innovative solutions which improve our client's finances, productivity and efficiency. Also, the $5 million investment we are making in Johnson City, coupled with the air emissions this project will offset, follows our company's commitment to improve the communities in which we live and work."

This landfill gas, a natural byproduct of waste decomposition, is currently burned off on-site. Now, through an innovative technology application by ESG, the methane will be processed and compressed at the landfill and will be shipped to end users as a replacement for the natural gas currently used to produce electricity, steam and hot water at local facilities. What makes the Iris Glen project unique is that this will be one of the first of its type in the United States (currently there are more than 380 landfill gas to energy sites active in the United States) to use a membrane filtration system to process the landfill methane for industrial use. The membrane system cost-effectively removes impurities from the landfill gas and provides a fuel source well suited for industrial applications.

"Johnson City prides itself on being a leading municipality and today we have proven this once more. Using a waste gas for productive work while increasing city revenues and reducing local emissions is a super project," noted Phil Pindzola, director of public works for Johnson City. "We look forward to a day very soon when operation of the new processing and distribution system will begin and all parties can start to benefit from this innovative partnership."

The project helps reduce fuel costs and the energy price risk for the end users, along with making them a key participant in using local renewable resources that helps improve the environment. Using this new process reduces the carbon dioxide -- greenhouse gas -- emissions by more than 139,000 tons per year in the local area. This is the equivalent of removing more than 27,000 cars from the roads or planting more than 40,000 acres of trees.

"This is a great win-win project for the people of Johnson City, the businesses purchasing the landfill gas, and Energy Systems Group," said ESG Account Executive Russ Nelson. "Our team is excited to take the lead in bringing this idea to life and processing a waste gas for use as a fuel for local business and as a source of funds for local government."

"The EPA is extremely pleased to have worked with Johnson City on this project, and looks forward to its completion," said U.S. EPA Landfill Methane Outreach Program manager Chris Voell. "Johnson City and its partner ESG are to be commended for their vision in making this project a reality. The environmental and economic benefits that will be realized by the local community and the two medical facilities show the incredible power of landfill gas as an alternative energy source."

The site development and construction should take 12 months to complete and includes the installation of filtering equipment, compressors and a three- and-a-half mile gas pipeline to deliver the clean methane gas to local business customers. Once completed, the energy delivered to the local economy is the equivalent of that used in more than 6,000 homes.

SOURCE: Energy Systems Group