Veolia Plans to Capture Clean-Burning Natural Gas From Its Greentree Landfill

Date: January 12, 2007

Source: Veolia Environmental Services

LANDFILL PROJECT TO BECOME A RENEWABLE ENERGY SOURCE FOR THE STATE OF PENNSYLVANIA

Veolia Environmental Services Greentree Landfill Slated to become Waste Service Company's Newest Green Energy Producer

Veolia Environmental Services (Veolia ES) Greentree Landfill is well on its way to becoming one of Pennsylvania's newest green energy producers. The innovative renewable energy project, a partnership between Veolia Environmental Services and Beacon Landfill Gas Holdings LLC, was announced today by Daniel Desmond, Deputy Secretary of the Pennsylvania Department of Environmental Protection's Office of Energy and Technology Deployment. It will convert landfill gas, which is otherwise burned in a flare, into pipeline quality natural gas. This gas will ultimately be used to produce environmentally clean electric power while also reducing greenhouse gas emissions.

"Putting this resource to use to power our economy gives us a clean, indigenous energy supply that our businesses can use to keep jobs in Pennsylvania," said Deputy Secretary Desmond. "Cleaner energy has its own rewards as well. Diversifying energy supplies by utilizing clean, indigenous resources helps to enhance energy security, reduce our dependence on imported fossil fuels and clean the air at the same time. Supporting the increased deployment of landfill methane gas is another example of Governor Edward G. Rendell's commitment to using environmental protection to drive economic development."

Veolia ES Greentree Landfill manager Don Henrichs called the project a step forward for renewable, green energy. "It's both great conservation and an environmental success," said Henrichs. "Instead of wasting this resource by burning it at the landfill, we are adding to the supply of the most clean burning fuel in the nation."

As municipal wastes decompose within a landfill, large quantities of landfill gas are produced. Environmental laws prevent this gas from being released into the atmosphere, so in most cases it must be burned in a flare, which results in the natural gas component being lost.

At the Veolia ES Greentree Landfill, a large processing facility will be installed to process and separate the natural gas from the remainder of the landfill gas. This natural gas will then be transported by the project's pipeline to an interstate natural gas pipeline located near the landfill site. The gas will ultimately be purchased by an electric generating company and turned into "green energy" as part of the nation's program to reduce emissions of greenhouse gases and other contaminants in the electric generating process and reduce the dependence on fossil fuels by using renewable energy sources.

The partnership between Veolia ES Solid Waste and Beacon Landfill Gas Holdings LLC will capture, refine and utilize the 10,000 cubic feet per minute of landfill gas that is currently produced and flared at the landfill. This volume of landfill gas could produce enough energy - the equivalent of 40 megawatts of electricity - to satisfy the needs of 45,000 homes, based on DOE energy consumption data. The project is expected to be in commercial operation in 2007.

Veolia ES Solid Waste, Inc. (formerly Onyx), owner of the Greentree Landfill, is a subsidiary of Veolia Environmental Services (VES) North America Corp., the waste services division of Veolia Environnement (NYSE: VE), the leader worldwide in environmental services. Beacon Landfill Gas Holdings LLC is the developer and owner of the landfill gas processing facility.

The Veolia ES Greentree Landfill gas project joins a growing list of innovative gas initiatives at other Veolia Environmental Services landfill sites. Todd Watermolen, VP of Engineering at Veolia ES Solid Waste, Inc., explained the motivation behind the company's participation in this project. "Being able to turn methane gas from the landfill into a viable energy source is beneficial not only for industry, but for the environment as well," he said. "As part of the Veolia culture, when we have the opportunity to invest in the community we serve, especially in an environmentally-friendly way, we make every effort to participate." Similar projects undertaken by Veolia include:

  • Veolia ES Star Ridge Landfill, in Moody, AL, partnered with Jenkins Brick to provide landfill gas to run the kilns at Jenkins' new $46 million brick plant. Landfill gas will initially provide 45 percent of Jenkins Brick's energy demands, and will eventually provide 80-90 percent of their energy needs as more landfill gas is collected from the landfill.

  • Veolia ES Cranberry Creek Landfill in Wisconsin partnered with Ocean Spray to provide energy that will power their boilers. This project was awarded a Gold Star Award in 2006 by the Solid Waste Association of North America.

  • Veolia ES Glacier Ridge Landfill, Dairyland Power Cooperative, and Eau Claire Energy Cooperative, all of Wisconsin, teamed up to provide electricity to 2,600 homes.


ABOUT VEOLIA ENVIRONMENTAL SERVICES IN NORTH AMERICA

Veolia Environmental Services North America Corp. offers fully integrated environmental solutions to virtually all industrial, commercial, municipal and residential sectors. It is part of the Veolia Environmental Services (VES) group, the only global manager of liquid, solid, non-hazardous and hazardous waste; on-site waste processing, industrial cleaning and process maintenance; and recycling, recovery and disposal for both the public and private sectors. VES has over 80,000 employees in 35 countries and posted revenues of $7.8 billion in 2005. Veolia Environnement, the parent of VES, with operations in water, waste, energy and transportation management, has more than 270,000 employees in 64 countries and recorded revenues of $30 billion in 2005. For more information, please visit www.VeoliaES.com.


ABOUT BEACON LANDFILL GAS HOLDINGS, LLC

Is a special purpose company organized to finance and develop landfill gas projects including Greentree, the Imperial project near Pittsburgh and future projects not yet announced. Among the owners of Beacon Landfill Gas Holdings LLC is American Exploration Company (AEC) and its wholly owned subsidiary, American Landfill Gas Company LLC ("ALG"), who has been the sole operator of the landfill gas gathering system at the Greentree Landfill for the past 2 years. While ALG has been the operator of gas gathering system at the Greentree Landfill, the Pennsylvania Department of Environmental Protection credited the landfill for its excellent environmental compliance. An affiliate of AEC has also developed the Adaptive Coupling and Method (Patent Pending) to enhance the efficiency of the collection of landfill gas and assure regulatory compliance. Beacon Generating LLC, the principal sponsor of Beacon Landfill Gas Holdings LLC is a private energy development company in McLean, Virginia. Beacon's first two high Btu landfill gas projects were developed in conjunction with another company at two large landfills in Western Pennsylvania. Beacon's principals, Ralph Daley, Ken Brown, Jim Schretter, and Bob Zulandi have extensive energy industry experience. John Hancock Life Insurance Company provided the senior debt financing for the projects. For more information, please visit www.BeaconLFG.com.

For more information, contact:
Donald J. Henrichs, Veolia
(814) 265-1744

Denise Graham, On Ideas
(904) 354-2600

Ralph Daley, Beacon
(703) 905-8110

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