FREEHOLD - In a move that will increase revenues, the Monmouth County Board of Freeholders has struck a deal with GSF Energy LLC to sell the methane gas that is produced from the decomposition of solid waste at the Monmouth County Reclamation Center, Tinton Falls.

According to a press release from the county, GSF Energy owns landfill gas recovery facilities across the United States and already has a landfill gas recovery operation at the Monmouth County Reclamation Center, in which it captures some of the methane gas and converts it into electricity and sells it. Under this new contract, GSF Energy will recover nearly all of the methane gas produced at the landfill and, in addition, will assume responsibility for all capital improvements, operation and maintenance costs for the gas facilities.

"This is a very good deal for Monmouth County - to be able to fully tap this valuable energy-producing resource from our landfill operation and, in doing so, bring a sizable revenue into the county coffers," Freeholder Director William C. Barham said. "Because the county's share is tied to revenues, this deal has the potential of being worth up to $1 million or more a year for the county."

Under the agreement, Monmouth County will be paid a monthly royalty calculated as a percentage of GSF Energy's gross revenues from the sale of output at the Monmouth County Reclamation Center, with a guaranteed minimum royalty of $50,000 per month. The company has an obligation to maximize its revenues and the county will have audit rights.

In addition, GSF Energy will assume responsibility for all capital improvements and maintenance of the gas collection system, regulatory monitoring, data collection and preparation of all environmental compliance obligations and reports. This alone represents a savings of about $300,000 a year for Monmouth County, on top of the $600,000 ($50,000 x 12 months), according to the press release.

Freeholder Theodore J. Narozanick, liaison to the reclamation center, said GSF Energy has been paying the county $250,000 a year since 1995.

"I am happy to see that GSF Energy will be expanding its operation at the reclamation center and we will be able to substantially increase our revenues from the sale of excess methane gas that is naturally produced there," Narozanick said. "The reclamation center is producing dividends for the public that we had not envisioned 20 years ago."

Since 1998, an affiliate of GSF Energy has owned and operated a 10-megawatt electric generating station at the reclamation center, where it uses a portion of the methane gas from the landfill and turns it into electricity, which it then sells to Jersey Central Power and Light Co.

Under the terms of the contract, Monmouth County will still be able to use a small portion of the methane gas if and when it builds its own electric generating station. The county is seeking a grant to build a small electric generating station in order to produce enough electricity to power its operations at the reclamation center, producing a potential savings of up to $1 million a year.

With the expanded gas-to-energy operation, GSF Energy will build, at its own cost, a gas processing facility at the reclamation center capable of processing nearly all of the excess methane gas. After it is collected, the gas will be compressed into a high-grade, pipeline-quality product that will be sold onto a nearby natural gas pipeline. Although the compressed methane gas is a slightly lower Btu value than natural gas, the gas pipeline company will be able to blend it and use it to heat homes in Monmouth County, according to the press release.

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