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Construction under way on Anchorage landfill methane gas project

ANCHORAGE- The Municipality of Anchorage Solid Waste Services (SWS) Department
and Doyon Utilities, LLC are moving ahead with construction of an energy project at the
Anchorage Regional Landfill.

Doyon broke ground for the new Joint Base Elmendorf Richardson (JBER) power plant
in June, and currently is constructing the gas pipeline at the landfill. Doyon hopes to
have all underground utilities and foundation work completed by early November, with
construction and installation of equipment continuing throughout the winter.

The project is anticipated to be available for commissioning and startup by May 2012,
with full commercial production scheduled for January 2013. Revenues generated by
the project will be used to offset rising operating and development costs at the landfill.
The project will utilize methane gas, a byproduct of the waste decomposition, to produce
electric power. Solid Waste Services currently collects and flares off this landfill gas to
meet federal Clean Air Act requirements. The project will divert the gas from the existing
flare to a scrubber facility located at the landfill.

The processed gas will then be piped to a power generating plant located on JBER. The
power plant is designed to be able to use both landfill gas and commercial natural gas
purchased from ENSTAR. The facility will provide approximately 23 percent of the
general operating demand and can support all emergency power needs of JBER.

The anticipated cost of the project is approximately $26 million, which is being paid for
by Doyon Utilities with some grant funding from the Alaska Energy Authority.

Once complete, the JBER power plant will be the first of its kind in Alaska. The number
of landfill gas projects nationally has grown from 399 in 2005 to 519 in 2009, according
to the Environmental Protection Agency.

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