By Alex Boutilier Metro Ottawa
More than a year after first announcing a deal was forthcoming, Ottawa City Hall and Plasco Energy Group have agreed on the terms.
Under the terms of the 20-year deal, the city will truck 109,500 tonnes of garbage annually to be run through Plasco’s experimental “plasma gasification” process, converting the waste to gas used for energy generation.
That’s the bulk of the 130,000 tonnes Plasco intends to process per year. The city also has the right of first refusal to provide the additional 20,500 tonnes. The deal includes the option for four five-year extensions for the city.
The city will play the company $83.25 per tonne processed.
“The finalization of the commercial agreement represents an important milestone in the city’s ongoing partnership with Plasco Energy Group Inc.,” said City Manager Kent Kirkpatrick in a press release.
The city announced the deal in an unusually timed press release Saturday morning after speculation a deal would be reached on Friday. Plasco CEO Rob Bryden told reporters Thursday that he expected a deal the following day.
It is not known what eleventh-hour snag delayed the contract agreement for a day.
Coun. Maria McRae, the chair of Ottawa’s environment committee and a supporter of the Plasco deal, told reporters in November that a deal was imminent. In the release, she said she looks forward to Plasco building a commercial facility at 3704 Moodie Drive.
“The city took rigorous steps to protect the interest of taxpayers when negotiating this contract,” McRae said in the release.
McRae could not be reached for an interview on Sunday.
A report on the deal will come forward to the city’s environment committee in early 2013. Council will have final approval on the contract in the New Year.