Landfill Gas-to-Energy (LFGE) Financial Due Diligence

Typical Tasks Performed:

• Concept design and cost estimates.
• Feasibility study reports:
  • Cost/benefit analyses.
  • Net present value or internal rate of return.
  • Cash flow and financing options.
• Assessments of existing and proposed LFG collection systems.
• Contract document review to identify technical requirements, milestone dates, and project costs. Agreements typically reviewed for both Gascos and Gencos include lease agreements, power purchase agreements (PPAs), gas sales agreements, Gasco/Genco transfer agreements, engineering procurement and construction (EPC) contracts, and O&M contracts.
• Solid waste, air emissions, and other permits from state and local permitting agencies.
• Third-party review.

SCS has served as the Independent Engineer on over 100 LFG projects with a loan value approaching $300 million over the past few years. The clients have included lenders for recourse and non-recourse loans, open credit lines, and Section 29 and Section 45 tax credit investments.

Typically, projects include:

• Financial due diligence engineering services for 19 LFG utilization projects nationwide for NEO Corporation.
   
• Financial due diligence engineering services for Zapco, Avon, Connecticut: 15 LFG projects ranging in size from 500 kW to 3.2 MW, and 1 direct use project. Projects are located in eight East Coast states.
   
• Preparation of Manual for Gas Research Institute, regarding feasibility of LFG recovery/utilization.
   
• Lender due diligence for four BFI electrical generation projects in Illinois, Michigan, and Wisconsin: First Chicago MBD, Chicago, Illinois.
   
• Analysis of high-Btu processing technologies, City of San Antonio, Texas.
   
• Lender due diligence for five Allegheny Energy Resources pipeline-quality upgrade projects located in Pennsylvania and Virginia: Duquesne Light, Pittsburgh, Pennsylvania.
   
• Third-Party Review of LFG Recovery Projects for State Street Bank in Boston (the lending institution), for Horseblock Road and East Northport Landfills, New York; Yolo County Landfill, California; Central Landfill, Rhode Island; Worcester Landfill, Massachusetts; and Battleboro Landfill, Vermont.
   
• Due diligence for 30 LFG projects owned by Gas Recovery Systems (GRS). Projects range in size from 740 kW to 23 MW, and are located in California, Hawaii, Illinois, Massachusetts, Minnesota, North Carolina, Ohio, and Virginia.