By: Pam Wright, Local Journalism Initiative Reporter, Chatham Voice
Turning waste into natural gas
A $160-million facility to convert organic waste into renewable natural gas has taken a leap forward.
At its Feb. 23 meeting, Chatham-Kent council approved six staff recommendations, paving the way for the construction of a new anaerobic digester plant in Chatham.
A joint effort between the municipality and Greenfield Global Inc., the project has been in works since 2020.
In a presentation to council prior to the vote, C-K chief financial officer Gord Quinton outlined the project’s background and detailed next steps.
“This is rare situation where there is a great opportunity to collaborate between the public and private sector,” Quinton told council, noting the facility will border the Greenfield ethanol plant and the Chatham-Kent Public Utilities Commission wastewater plant in southwest Chatham.
“It will take waste materials from both those facilities and turn it into green renewable energy,” Quinton explained.
As part of the preliminary work, council approved the formation and incorporation of a new Municipal Services Corporation (MSC). The move was necessary, Quinton told council, in order to borrow for the project including applying for a $25-million loan from Infrastructure Ontario.
Patterned after a Greenfield Global anaerobic digester in Varennes, Que., the Chatham facility will convert industrial, commercial and institutional organic waste into natural gas. Serving some 30 municipalities in the Montreal area, the Varennes plant converts 40,000 metric tonnes of waste away from landfills each year.
The MSC, to be fully owned by Chatham-Kent, will serve as a “holding company,” representing part ownership of the new plant. Greenfield Global will own 60 per cent of the project, with C-K’s share at 40 per cent.
Forming a corporation prior to the final decision is necessary, Quinton said, in order to complete various agreements between Greenfield Global and government agencies, adding if the project doesn’t proceed, the corporation will be closed down.
Council also approved the appointment of three members of the administration to serve as the new corporation’s directors, including the chief financial officer, the deputy chief administrative officer and the general manager of the Chatham-Kent PUC. In the future, council will have the authority to determine who sits on the board.
“Initially, we’re under an extremely tight timeline and the decisions needed are very technical,” Quinton said of the inaugural board. “It would be very tough for any councillor to tackle these types of reviews.”
To date, Chatham-Kent has spent $1.5 million to probe the digester venture. So far, upper-level governments have committed $60 million towards the project.
A significant amount of money has been obtained from the federal government. In 2023, an interest-free $10-million loan was obtained from Canada’s Clean Fuels Fund. In 2024, an additional $10 million was obtained by Greenfield Global with municipal support through the Federation of Canadian Municipalities’ organic-waste-to-energy program. However, in 2025, the Clean Fuels Fund changed and a second application had to be made, which secured a $45-million interest-free loan.
Another $5 million is coming to the project through the Federal Economic Development Agency for Southern Ontario.
Deloitte is also involved, with a team reviewing the financial implications of the proposal.
Under the proposal, Chatham-Kent has applied for a low-cost $25-million (20-year) loan from Ontario Infrastructure. According to Quinton, the provincial crown corporation needs lead time to review the loan application, necessitating the tight timeline, noting it’s “unlikely” C-K will take the loan out during the present term of council.
“But we need to get our financing in place now,” he stressed. “If we decide to not go forward, we would not take the loan out – simple as that.”
He reminded council the debenture will be paid for by the sale of natural gas – not by ratepayers – noting there will also be dividends from the corporation for the next 50-plus years.
“This will benefit all corners of Chatham-Kent and every taxpayer,” he said, noting that pushing it back could negatively impact government funding.
Several councillors who spoke expressed concerns about the risks involved, as well as the necessity of keeping council and the public informed.
North Kent Coun. Rhonda Jubenville said she’s had questions from constituents.
“We’re not making any final decisions and I just wanted to clarify that with the public,” Jubenville said.
In response, Quinton said information will be made available on the municipal Let’s Talk CK page, with an opportunity for public engagement.
According to the report, council has supported the project through various due-diligence stages, endorsing it in 2021.
In 2019, council declared a climate emergency, directing administration to develop a long-term climate action plan which identified waste management as a key priority.
The matter will return to council on April 27 for a final decision on whether to proceed.
