Public-private partnership ends for power plant at Hartland

The Capital Regional District will become the sole owner of the gas-fired power plant at Hartland Landfill in Saanich

The Capital Regional District will become the sole owner of a gas-fired power plant at Hartland Landfill after buying out its private partner, Maxim Power Corp.

The CRD has agreed to pay Maxim Power $1.8 million for its 30 per cent stake in the 1.6 megawatt power plant, minus $900,000 for ending the lease agreement, for net cost of $900,000.

The CRD and Maxim Power entered into the partnership in 2003 to produce electricity from methane gas discharged from the landfill. Maxim paid the CRD an annual royalty for the right to sell power to B.C. Hydro.

Andy Orr, who speaks for the CRD, said the CRD and Maxim Power came to a mutual agreement for the Calgary-based company to exit the operation, on the prompting of the CRD. Orr said the regional district now has the expertise to run the power plant.

“Once upon a time the thought was, when we did the original deal, that going with the private sector was the best way,” he said. “We’ve had time to think about things … that there’s no need to have them involved.”

The landfill produces 18 cubic metres of gas each minute, enough to generate 12,274 MW-hours of energy per year, according to the CRD. Under the base power rate paid by B.C. Hydro, the plant could generate $1.2 million per year in revenues, although B.C. Hydro also paid a “green premium” for part of the power generated.

In a press release, Maxim Power said it planned to use the $900,000 for “strategic corporate purposes.”

It’s unclear why Maxim opted out of the project, although it had “the option to sell its portion of the facility to the CRD for fair market value, if production of power drops below a pre-determined threshold for a pre-determined period of time,” according to a CRD report on the project. Maxim Power didn’t respond to requests for comment.

When the deal was struck in 2003, Maxim Power contributed $840,000 to build the $2.8-million plant, and the CRD chipped in $1.96 million, which Maxim agreed to pay back to the CRD over the 20-year project. Orr couldn’t say how much Maxim actually paid back over nine years of operations, citing a confidential contract.

All revenue generated by the power plant will become part of Hartland landfill’s revenue stream. He couldn’t say if the CRD is planning to expand the generating capacity of the plant, but said the potential is there.

“When people think of landfills, more and more they think about capturing energy,” Orr said.

editor@saanichnews.com

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A decade into the 100-year blueprint for restoring the Bowker Creek watershed, Soren Henrich, director of the Friends of Bowker Creek Society, feels positive about the future of conservation and daylighting of the creek. (Nina Grossman/News Staff)
Ten years in, Greater Victoria’s 100-year Bowker Creek blueprint gets a boost

Victoria council passes several restoration recommendations

During a press event on March 6, Const. Alex Berube, media relations officer for the West Shore RCMP, addressed a deadly shooting that occurred in Metchosin the night before. (Devon Bidal/News Staff)
VIDEO: One man shot dead in ‘targeted incident’ on Sooke Road

Highway 14 reopens following multi-hour closure for investigation

Victoria man Brett Andersen is asking for people’s help to secure him one of eight free tickets to the moon. (Screenshot/@brettandersen Instagram)
Victoria man wants your help securing a free ticket to the moon

Japanese billionaire offering eight people a trip to the moon

A resurfacing of the tennis court in Metchosin is being eyed for the community. However, funding opportunities still need to be solidified for the project. (Michelle Cabana/Black Press Media)
Renewed surface eyed for Metchosin tennis court

Funding source must first be solidified in order for project to happen

The James C Richardson Pipe Band marches in a Remembrance Day parade on Nov. 11, 2019 in Chilliwack. Wednesday, March 10 is International Bagpipe Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of March 7 to 13

International Bagpipe Day, Wash Your Nose Day and Kidney Day are all coming up this week

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

Donald Alan Sweet was once an all star CFL kicker who played for the Montreal Alouettes and Montreal Concordes over a 13-year career. Photo courtesy of Mission RCMP.
Ex-B.C. teacher who was CFL kicker charged with assault, sexual crimes against former students

Donald Sweet taught in Mission School District for 10 years, investigators seek further witnesses

(Black Press Media files)
Medicine gardens help Victoria’s Indigenous kids in care stay culturally connected

Traditional plants brought to the homes of Indigenous kids amid the COVID-19 pandemic

Personal protective equipment is seen in the COVID-19 intensive care unit at St. Paul’s hospital in downtown Vancouver. THE CANADIAN PRESS/Jonathan Hayward
$16.9 million invested to improve worker safety, strengthen B.C.’s food supply chain

Money to be used for social distancing, personal protective equipment, cleaning, and air circulation

More than ever before, as pandemic conditions persist, the threat of data breaches and cyberattacks continues to grow, according to SFU professor Michael Parent. (Pixabay photo)
SFU expert unveils 5 ways the COVID-19 pandemic has forever changed cybersecurity

Recognizing these changes is the first in a series of steps to mitigate them once the pandemic ends, and before the next: Michael Parent

Kevin Haughton is the founder/technologist of Courtenay-based Clearflo Solutions. Scott Stanfield photo
Islander aims Clearflo clean drinking water system at Canada’s remote communities

Entrepreneur $300,000 mobile system can produce 50,000 litres of water in a day, via solar energy

Malawian police guard AstraZeneca COVID-19 vaccines after the shipment arrived in Lilongwe, Malawi, Friday March 5, 2021. Canada is expecting its first shipments of AstraZeneca vaccine next week. (Associated Press/Thoko Chikondi)
B.C.’s daily COVID-19 cases climb to 634 Friday, four more deaths

Currently 255 people in hospital, 66 in intensive care

Most Read