Will Union County accept GGI Energy’s proposal?
Amy Schultes, manager at Prairie Solid Waste, said Thursday the Prairie Solid Waste Board has begun drafting a letter of intent stating it’s ready to move forward in the construction of a waste-to-energy plant east of Creston near Prairie Solid Waste Agency.
The board is slated to meet in regular session 5:15 p.m. March 7 at Prairie Solid Waste. That evening, board members will vote for or against sending the letter of intent to GGI Energy. The letter of intent would “buy the county some time” as they are currently working under a 30- to 45-day deadline.
“The letter of intent is not a legally-binding document,” said Al Davis, director of sales at GGI Energy. “It’s a step in the process that gives us a strong indication the county wants to move forward with a waste-to-energy plant, sooner rather than later.”
Union County Board of Supervisors representative Ron Riley said the county hasn’t signed any legal contracts with GGI Energy and cannot do so until the board of supervisors organizes and completes a public hearing.
The process from there includes the board and its attorney reviewing the 20-year feedstock waste agreement being proposed by GGI, whereby Creston and surrounding locations will need to provide 40 tons of dry waste to the plant per day for 340 days per year.
They will also review the low-cost land lease (about $10 per year) of about three acres near Prairie Solid Waste Agency.
Schultes did say Thursday GGI Energy’s proposal includes a tipping fee on all trash coming into the waste-to-energy plant at 25 percent below the current tipping fee being paid by the county to Metro Waste Authority. Schultes said the tipping fee could be a point of negotiation between GGI Energy and Union County.
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Background:
GGI Energy of Plano, Texas, claims they have researched, developed and improved patented technology to transform southwest Iowa’s everyday garbage into diesel fuel and electricity with minimal emissions.
GGI Energy officials are proposing a 40-ton-per-day, waste-to-energy facility be built in Union County, which, they say, would generate about 5,200 gallons per day of commercial-grade diesel fuel. Other Iowa cities currently in discussion with GGI Energy are Osceola, Newton, Spencer and Fort Dodge. County officials said the Texas-based company targeted Iowa cities because of the exceptional incentives the state offers including subsidies and low- and no-interest loans.
GGI Energy officials said local companies could be hired for the plant’s construction and the plant would create about 30 green jobs to be held by local citizens once it’s running full time. The county would also get a discounted price on diesel fuel produced at the GGI Energy plant at about 25 cents below wholesale.
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