Chatham-Kent mayor pitches waste-to-energy project as high-return investment ahead of council vote

The final vote for a proposed waste-to-energy project is coming up next week. CTV Windsor’s Chris Campbell shares the details.

The mayor of Chatham-Kent is defending a proposed waste-to-energy project as a high-return, low-risk investment ahead of a key council decision later this month.

Mayor Darrin Canniff says the municipality’s participation in the $160 million project would turn organic waste into renewable natural gas and fertilizer while generating long-term financial benefits.

“We are investing in a bio-digester here in Chatham-Kent,” Canniff said.

“It takes waste from Greenfield Global and from our PUC and turns it into natural gas and fertilizer.”

Council is expected to make a final “go/no-go” decision on April 27, with the project structured as a partnership in which the municipality would hold a minority stake.

Canniff said the municipality would ultimately be responsible for about $16 million, shifting funds from existing investments that currently generate about six per cent returns into a project he says could yield between 14 and 31 per cent over the long term.

“The decision here is do we take money that we have invested in GICs and put it in this investment,” he explained, adding the project could generate significantly higher annual returns.

He also pointed to projected savings, including avoiding roughly $25 million in future infrastructure costs and about $650,000 in annual operating expenses.

Canniff argued that even under a worst-case scenario, the municipality would still come out ahead.

“Even if the worst-case scenario, the entire $16 million disappeared, we’ve made money,” he said, citing avoided costs and ongoing savings.

The mayor added the project has undergone multiple reviews, including a third-party analysis by Deloitte.

“They’ve come back and said, yes, it is safe. You should invest in this,” he said.

Canniff acknowledged there has been limited public feedback on the project but said council has discussed it in several meetings over the past few years.

“There has been very little public feedback. We’ve had eight meetings over the years on it,” he said, adding the process has been transparent.

He also noted the decision is time-sensitive, with federal and provincial funding worth upwards of $60 million tied to municipal approval.

“If we don’t commit to it, the government is going to look at reallocating those funds to another investment,” Canniff said.

However, not all members of council are convinced.

Chatham-Kent councillors Alysson Storey, Amy Finn, Rhonda Jubenville, and Lauren Anderson were on hand for a local media event on the proposed project on Tuesday but declined to comment.

Ward 6 Coun. Michael Bondy says there are still too many unanswered questions and not enough public input to justify moving forward.

“What are the risks like? We’ve been told… it’s all been good news,” Bondy said.

“Has there been enough public input? I would say the answer to that is no.”

Bondy questioned whether the municipality should be investing in what he views as a private-sector venture.

“I think the private sector should own 100 per cent of it. We can be the customer. That works,” he said.

He also raised concerns about the timing of the decision, calling it rushed.

“The information seems pretty scant… it’s an 11th-hour decision. We have to decide on Monday or else the whole thing goes boom. I don’t like that very much,” Bondy said.

Bondy added he would prefer to see the decision deferred, potentially until after the municipal election later this year.

“This is a massive investment of tax money that I think is misplaced,” he said.

“Fix the roads… that’s what we should do.”

Council is expected to make its final decision on the project at its April 27 meeting.