Dayton may agree to biogas sales for millions in 'royalties' - Dayton Daily News

Dayton may agree to biogas sales for millions in ‘royalties’

Dayton potentially could rake in millions of dollars in the next two decades selling biogas to an energy company.

The city proposes entering into a 20-year contract with Pinnacle Gas Producers LLC to sell gas from its wastewater treatment plant.

Millions of cubic feet of biogas are produced at the plant every year that officials say right now are burned and wasted as part of a process called flaring.

Pinnacle Gas Producers, a subsidiary of DTE Biomass Energy, proposes installing infrastructure at the facility to upgrade the biogas to renewable natural gas and then transport and sell it.

Under the proposed agreement, Dayton would receive around $1.3 million annually, or about $26 million over 20 years, from the company in “royalties.”

But the city expects that heating the water reclamation facility will require the use of additional natural gas, which will increase energy costs, says a memo from Meg Maloney, Dayton’s sustainability manager.

As a result, the city’s estimated net revenue from this project would be about $800,000 per year, or $16 million over the life of the contract.

City officials in the past have said a project like this will generate revenue for the water department while helping the city with its green initiatives.
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