Red Deer County council approved a $2.3 million two-year garbage contract on Tuesday.
BFI Canada Inc. was the lowest of two bids on the contract to operate three county waste transfer sites and haul garbage to the landfill. The next bid was $115,000 higher.
The company, formerly known as Waste Services Inc., will operate the Horn Hill, Gaetz Creek and Yankee Flats waste transfer sites, which were built over the last three years.
Waste is collected at Gaetz Creek, in the east end of the county, and Yankee Flats, in the west, and taken to the Horn Hill Waste Transfer Site just east of Penhold.
It is then hauled to the West Dried Meat Lake Landfill in Camrose County.
The two-year contract begins Jan. 1, 2011, and expires at the end of 2012.
“The term of this contract has been structured in such a way to account for the timing of the proposed waste-to-energy facility,” says a report to council from county environmental planner Andrew Treu.
Ottawa-based Plasco Energy Group is waiting on $24 million in federal Green Infrastructure Fund cash the company needs to go ahead with the 200-tonne-a-day gasification plant that would be built next to the Horn Hill site.
The $100-million plant uses high heat to convert waste into a gas that can be used to fuel electric generators.
Plasco wants to start work on the site in March of next year. Commissioning the plant would start a year later with full operation by the fall of 2012.