Waste to Energy Project

The Municipality of Chatham-Kent and the Public Utilities Commission have received Council approval to proceed with the Waste to Energy Project, an initiative designed to turn organic industrial waste into Renewable Natural Gas (RNG) using anaerobic digestion technology. This project supports the community’s commitment to environmental sustainability, climate action, and responsible waste management.

Why This Project Matters

• Reduces landfill use: Organic industrial, commercial, and institutional waste would be converted into clean energy instead of being disposed of in landfills.
• Supports climate goals: The project aligns with Chatham-Kent’s 2019 Climate Emergency declaration and ongoing Climate Action Plan work.
• Creates renewable energy: Producing RNG is expected to help offset future municipal operating costs.
• Builds regional leadership: The facility positions Chatham-Kent as a regional hub for sustainable waste processing, similar to Greenfield Global’s successful plant in Quebec that serves more than 30 municipalities.

Project Progress to Date

The project has undergone several years of planning, technical studies, and financial reviews:

• Council provided multiple approvals between 2021 and 2025 to continue engineering design, financial due diligence, and legal structuring.
• The project has secured approximately $60 million in federal and regional funding.
• On April 27, 2026, Council approved the project by a recorded vote of 14-4, authorizing the Municipality to proceed with implementation.
• The total project cost remains at approximately $160 million, based on final engineered estimates presented to Council.

How the Project Will Be Structured

To manage Chatham-Kent’s investment and ensure strong governance, the Municipality has established a Municipal Services Corporation (MSC).

Why a Municipal Services Corporation?

• Ensures the project is overseen by a board with the necessary technical, operational, and financial expertise.
• Allows the municipality to effectively hold and manage its 40% ownership interest in the project.
• Provides access to financing mechanisms that are not available directly to the Municipality under the Municipal Act.

Under this structure:

• 40% of the project will be owned by Chatham-Kent through the MSC.
• 60% will be owned by Greenfield Global.

Financing the Project

As part of the approved project structure:

• The Municipality has secured approval for up to $25 million in long-term financing from Infrastructure Ontario, which offers predictable, long‑term borrowing options.
• The remaining project debt, estimated at $60–70 million, will be financed through commercial lenders.
• This blended financing approach complies with federal funding requirements that limit borrowing from public-sector sources.

Next Steps Following Council Approval

With Council's approval now in place, the focus shifts from decision-making to implementation:

1. Execution of finalized project agreements, including shareholder, operating, and financing agreements.
2. Completion of financial close and lender requirements.
3. Transition into the construction and implementation phase of the project.
4. Ongoing oversight by the MSC Board and reporting to Council in accordance with the approved governance framework.