Eco Investor May 2016

Core Securities

More Landfill Gas for Energy Developments

It is good to see Energy Developments continuing to grow under its new owner, DUET Group. The latest moves are the acquisition of a landfill gas business in Perth and the go-ahead to build, own and operate a landfill gas facility in Ohio, USA.

Landfill Gas and Power Pty Ltd (LGP) owns and operates two landfill gas generation facilities in Perth totaling 9 MW and a 1 MW diesel peaking station. The two larger projects have long dated agreements with Mindarie Regional Council and the Eastern Metropolitan Regional Council for exclusive access to gas. Both landfills are open, which will provide a long term supply of gas.

The acquisition is a bolt-on to Energy Developments' existing 84 MW landfill gas business in Australia which has been operating for 25 years. Energy Developments' managing director Greg Pritchard said the acquisition consolidates Energy Developments position as the leader in landfill gas generation in Australia.

The new Ohio landfill gas plant will be 5 MW and located at the Brown County landfill site. It follows last year's 25 year gas supply agreement with Rumpke Waste, Inc for exclusive access to the gas; and the signing of a 15 year power purchase agreement with AMP Ohio. The power station should commence operations in the fourth quarter of 2016-17.

Mr Pritchard said Rumpke is one of the largest privately owned residential and commercial waste and recycling firms in the US and the agreement positions Energy Developments to potentially deploy capacity at other Rumpke-owned landfill sites. (ASX: DUE)





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