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HomeMy WebLinkAbout26-0117 - 2026-09-29 - Informal ReportFORT WORTH.; INFORMAL REPORT TO CITY COUNCIL MEMBERS SUBJECT: UPDATE ON THE RENEWABLE NATURAL GAS (RNG) FACILITY AT THE CITY OF FORT WORTH SOUTHEAST LANDFILL - CODY WHITTENBURG, ENVIRONMENTAL SERVICES DIRECTOR DATE: 09/29/26 NUMBER: IR 26-0117 TO 1 -IE MAYOR AND MEMBERS OF THE CITY COUNCIL The purpose of this informal report is to provide an update on the development of a renewable natural gas (RNG) facility at the City of Fort Worth Southeast Landfill (SELF), including the project's financial status, revised schedule, and upcoming milestones. On August 13, 2024, M&C 24-0695 authorized the execution of a service agreement with Archaea Energy Operating, LLC. (Archaea) to develop a landfill gas to renewable natural gas conversion system at the SELF. A Landfill Gas Rights Development Services Agreement (CSC # 63626) between the City of Fort Worth, Allied Waste Systems, Inc. (Republic), which operates the SELF, and Archaea was executed on July 24, 2025. Municipal solid waste landfills, such as SELF, generate landfill gas as organic material decomposes. Landfill gas can be collected and processed to remove impurities and increase its methane content, producing pipeline - quality RNG. RNG can then be used in the same manner as conventional natural gas, including for heating, electricity generation, and transportation fuel. The project will beneficially use landfill gas generated at the SELF while creating a new revenue source for the City's solid waste system. Financial Status The agreement negotiated with Archaea requires the RNG facility to be designed and constructed by Archaea at no capital construction cost to the City. During project development and construction, Archaea also pays a monthly development fee. As of September 1, 2026, the city has received $1,317,152 in development fees. The city anticipates receiving approximately $3 million in additional development fee revenue before the anticipated December 2028 Commercial Operation Date (COD). When the RNG facility begins commercial operations, the city will receive royalty payments from the sale of products made from the recovered landfill gas. An estimated $2.5-$5 million is expected to be received annually, and all revenue will support long-term solid waste planning as well as programs and initiatives that conserve green space and advance other environmental projects. 1 of 3 FORT WORTH® Project Status The project is currently anticipated to be completed and enter commercial operation in December 2028, approximately one year later than originally planned. The previous anticipated COD was September 2027. Archaea has indicated that the schedule extension is primarily due to the necessary redesign of the Archaea site footprint at the SELF to optimize the layout, equipment, and additional design to process up to 20% nitrogen in the LFG as agreed in the standards negotiated in the Gas Rights Agreement contract with Fort Worth. The revised schedule does not result in additional capital cost to the City or affect the City's contractual rights. Staff continues to monitor Archaea's performance against the agreement and the revised project schedule. On -site mobilization of construction activities is scheduled to begin in July 2027. To date, completed planning activities include geotechnical analysis, a comprehensive permitting review, mechanical design for equipment, and utility coordination. The immediate next steps include relocating site monitoring wells, completing the site -specific engineering design, finalizing the pipeline easement agreement, and obtaining required construction permits in coordination with the Development Services team. Key remaining activities include permitting, the pipeline easement, utility interconnection, and equipment procurement. Staff will continue to monitor these activities to maintain the anticipated COD of December 2028. The anticipated timeline is outlined below. Anticipated Project Timeline: • July 2027 On -Site Mobilization / Groundbreaking • Nov 2027 Site Preparation Complete • May 2028 Pipeline Interconnect Complete • Sept 2028 Substantial Completion of Facility Construction / Ribbon Cutting • Dec 2028 Commissioning and Start-up/Commercial Operation Date The project timeline has been refined to reflect current progress and design inputs. At start- up, the facility is expected to process all available landfill gas, currently approximately 3,200 scfm. The project includes approximately 3h mile of pipeline connecting the facility to the BKV interconnect. Project Management 2 of 3 FORT WORTH® This public -private partnership is coordinated by the Environmental Services Department, with support from an external project manager who assists with coordination and implementation. City staff oversees contract compliance and project execution. Republic Services, as operator of the SELF, coordinates with the City and Archaea on on -site research, surveys, and planning. Archaea leads site engineering, utility agreements, RNG facility construction, and production. Staff will continue to monitor contract compliance, the revised project schedule, permitting, pipeline interconnection, construction activities, and financial performance. Staff will provide additional updates to the City Council as significant project milestones are reached or if material changes to the anticipated December 2028 COD occur. For questions regarding this information, please contact Cody Whittenburg, Environmental Services Director at 817-392-5455. Jesue "Jay" Chapa City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS 3 of 3