Port Macquarie-Hastings Council has agreed to further investigate the financial implications of registering and implementing a landfill gas capture trial project with the Clean Energy Regulator.

Councillors vigorously debated the trial project before deferring a decision to invest $200,000 of reserves held within council’s waste fund to its October meeting.

Prior to the repeal of the Clean Energy Act 2012, council had proposed a trial to estimate landfill gas emissions at the Cairncross site. Under the Clean Energy Legislation at the time, council would have been liable for landfill gas emissions generated from the waste facility. Council called for tenders in 2014 but chose not to progress with the trial after all tenders failed to address the tender criteria for the project.

The project trial is now back on the council agenda with the establishment of the federal government’s Emissions Reduction Fund (ERF). The fund presents opportunities for council to gain financial benefits in implementing the trial.

Cr Geoff Hawkins said before council commences a trial it should look at comparative data from other regions using similar systems and business case viability.

“Information councillors have received is not conclusive enough from a financial point of view. There are still many unknowns,” Cr Hawkins said.

Cr Mike Cusato agreed a business model was imperative if council was to commit $200,000 to a trial project, ensuring ratepayers’ money is being spent wisely.

“I’m worried about the community as far as their perceptions,” Cr Cusato said.

Cr Trevor Sargeant said as the leading North Coast council, Port Macquarie should lead the way on issues of the environment.

“It’s up to us to play a leading role in this important greenhouse gas project,” Cr Sargeant said. “A business case can’t be determined until we have data from the trial.”

In a report to council, director of development and environment service Matt Rogers said the ERF could allow council to generate revenue through the sale of carbon credits.

“Initial assessment shows that there is a potential for the project to generate revenue for council that will exceed the capital and operational costs of the project,” Mr Rogers said.

The cost of a landfill gas capture system, including the trial component, is estimated to be $800,000.

The purpose of the trial is to confirm the quantity and quality of gas present at the Cairncross landfill prior to committing to the construction of a full landfill gas capture system.

Based on modelling, Mr Rogers said it is predicted a landfill gas system could initially capture a minimum of 70,000 tonnes of landfill gas every year. Based on the current price of carbon credits, there is potential for the system to generate more than $1 million in revenue which would fund the capital and operational costs of the facility.

“It should also be noted that additional opportunities exist for the ongoing use of landfill gas as a renewable energy source. For example, a heat source for waste processing operations or fuel for electricity generation,” Mr Rogers said.