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Five Oaks Gas to Energy Project

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Taylorville and Christian County are fortunate to have the opportunity to locate and develop an important project, with elements from two companies comprising the project: Waste Management, Inc. a long standing successful business with a presence in Christian County since the early 1990’s, and H. M. Buckley Growers, Inc, a company with many years of experience in the wholesale greenhouse industry. The specific background of the companies and the project details are as follows:

Background Buckley’s:
The Buckley family has been involved in the horticulture business since the 1880’s. H.M. Buckley and Son have ceased operations July 1, 2006. The principals of H.M. Buckley’s and Sons were the fourth generation of the Buckley family to operate the business. The fifth generation of Buckley’s, who has actively been involved in the business for over twenty years, has started a new operation, H. M. Buckley Growers, Inc. which currently operates a facility in Springfield, IL. The company has been struggling with high energy and labor cost associated with their current aging facility, which was built in the early 1960’s. In addition, Buckley’s is land locked and has no room for expanding to a new more modern facility at the current site. The Buckley family also operates a facility in Naples, Florida, which could serve as the site for the new facility.

Project:
Waste Management in Taylorville has offered Buckley’s the opportunity to utilize hot water, a by-product of methane gas (from their landfill) fueled electricity generators, to heat a new facility at a very reduced cost compared to what is currently being paid for natural gas. This would put the company on the leading edge in the industry for heating efficiency and give them a considerable advantage over their competition. This is a proven system, which Waste Management has implemented successfully in other parts of the country. Waste Management has a 35-acre plot of ground available adjacent (just east) to the Taylorville Waste Management facility. Buckley’s has negotiated a long-term lease on the site with Waste Management, a ten year term with two ten year extensions.

The facility would consist of a 4-acre greenhouse and a 20,000 square foot support building. Buckley’s hope to begin the construction as soon as the Enterprise Zone is approved and it would be completed in 6-8 months.

Capital Investment: $4.5 million to build the new greenhouse facility.
Jobs Created: 30-35 full time employees and 10-15 seasonal employees in 24 months.

Background Waste Management:
In 1994, Waste Management installed an active landfill gas extraction system and central flare at the Five Oaks RDF to properly manage landfill gas generated by the facility. The initial system has been expanded on two occasions and continues to flare the landfill gas generated by the landfill.

As additional waste has been disposed of in the landfill, the amount of landfill gas generated has increased. Projections indicate that later this year the amount of landfill gas generated by the landfill will be sufficient to justify the construction and operation of a landfill gas to energy facility (gas plant).

Project:
The gas plant will be equipped with Caterpillar engine/generator sets that use the landfill gas as a fuel. Initially, the gas plant will be equipped with four engine/generator sets capable of generating 3.2 megawatts of electricity (equivalent to approximately 2,500 homes). Electricity generated will be sold and distributed through Ameren’s electrical power grid. As the amount of landfill gas generated by the landfill changes over time, the number and size of the engine/generator sets will be changed to most closely match the available fuel.

In addition to generating electricity, the gas plant will also generate heat through the operation of the engine/generator sets. This heat is a useful byproduct that can be used for comfort heating, heating of hot water and other beneficial uses. H. M. Buckley & Sons, Inc. (Buckley), will develop a modern greenhouse facility immediately east of the Five Oaks RDF that uses this heat.

Benefits associated with this project are numerous. Christian County will benefit from the new jobs created by the gas plant and Buckley’s facility. Buckley will relocate its facility to Christian County, construct a state of the art greenhouse facility and obtain heat at a much cheaper cost than the equivalent amount of natural gas. Waste Management will recognize income from the sale of electricity and heat.

Capital Investment: Facility Construction, Purchase of M & E $5M

Both projects have broken ground and are under construction and expected to be operational by the fall of 2007.