In 2009–10, the most recent year for which data are available, the Australian economy generated an estimated 53.7 million tonnes of waste, of which 24.9 million tonnes was disposed of in landfill.10 Decomposing waste generates landfill gas, which typically contains between 45 per cent and 60 per cent methane—a greenhouse gas with a global warming potential 21 times greater than that of carbon dioxide over a 100-year span.11 The landfill gas power generation industry is now capturing much of these emissions and many landfill operators are converting the gas to electricity.
The landfill gas power generation industry has invested more than $500 million throughout Australia in generating capacity of more than 185 megawatts. Landfill gas power stations generate approximately 850 gigawatt hours of renewable electricity annually, enough to power more than 133,000 average Australian households.12 The industry employs more than 300 people directly and a further several hundred indirectly, providing ‘green jobs’ in regional and urban Australia.13
Since 2001, 62 landfill gas power stations have been accredited under the Large-scale Renewable Energy Target, and the Clean Energy Regulator has accredited new landfill gas power stations every year. More than 6.9 million large-scale generation certificates, valued at approximately $250 million14, have been registered by landfill gas power stations.
The creation and sale of landfill gas large-scale generation certificates allows the power stations and their associated markets, such as local councils and landfill site operators, to offset operational costs.