Algonquin Power lands York and Simcoe trash
PEEL—As Peel Region works to sort out long-term waste management plans, Algonquin Power has secured its immediate future by landing deals with York and Simcoe. The company confirmed it will burn a combined 50,000 tonnes of waste from those communities annually for the next five years at its Energy-From-Waste facility in Brampton.
And while Peel Council opted to go a different route, scrapping its relationship with Algonquin in favour of building its own modern thermal burn facility, one Algonquin official says the EFW will be able to grow its business over the next several years.
In addition to trash secured from York Region and Simcoe County, the facility has a contract to incinerate 187,000 tonnes of commercial trash annually from businesses across Greater Toronto.
“We certainly won’t close,” said David Campbell, senior business manager with Algonquin Power.
The region has issued a Request for Qualification (RFQ) inviting companies to participate in the bidding process to build a new state-of-the-art incinerator for Peel’s residual waste.
The staff recommendation accepted by council in June, set out the parameters on what kind of technology the facility will use, how much trash it will handle, and how the region plans to pay for the project.
Council agreed thermal technology would be used to convert 300,000 tonnes of trash per year as steam or electricity.
The plan is to have the facility open by 2020 at an estimated cost of $400 million, which the region will finance.
In the meantime, Peel is sending its trash to a landfill near Sarnia and using the $24 million in anticipated savings toward the new building.
For two decades, Peel burned about 160,000 tonnes of trash at the EFW on Bramalea Road.
When Peel’s 20-year contract with Algonquin ended in 2012, councillors decided rather than renew the existing contract, the municipality would take steps to construct a new plant capable of handling the region’s long-term trash disposal needs.
Peel will need to dispose of more than 270,000 tonnes of garbage annually by 2020.
Waste management staff argued the technology used at the Algonquin plant is out of date and the cost to upgrade the equipment and space too costly.
Campbell rejected the notion that the Brampton EFW is inefficient or antiquated, and stressed the technology is still good or the province would have closed it down.
“As the provincial regulations change we have to change with them. If we don’t change (the province) would just shut us down,” said Campbell, noting Algonquin spent $10 million on upgrades in 2010. “So to say that the technology is old is probably not fair.”
With trash coming from around the GTA, Algonquin has secured enough business to ensure the facility will continue to run.
The company, in fact, is forecasting business will double over the next few years.
Campbell noted the contracts with York and Simcoe are short-term agreements with the option to extend after five years.
The company is also reaching out to other municipalities for similar contracts.
“We have meetings scheduled,” said Campbell, adding Algonquin is also considering making a bid for the new region project.
With Algonquin’s immediate future secured, the big question for regional council is whether Brampton residents will accept a second burn facility in their city.
Councillors will consider a few options in the next few months, including building the new facility at the regionally owned Integrated Waste Management Facility in Brampton, or constructing outside of Peel.
At a council meeting in June, Councillor Paul Palleschi argued against locating a second site in Brampton.
“The report basically says Brampton is getting the next incinerator whether you like it or not,” Palleschi said.
Palleschi pushed council to allow bidding companies to decide if they can build a new incinerator beyond Peel’s borders. Staff proposed the best option for Peel is to build on land it already owns and has the necessary zoning.
“I don’t like the fact that companies can’t come back with any other options or locations. Why? Have you consulted with the host city, whether we believe in that option?”
Council could decide on how to proceed with the new incinerator as early as this fall.
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