WM Invests $56M in Alabama RNG Facility, Construction to Begin this Year

WM is moving forward with its plan to build a new renewable gas facility in Lee County, Alabama following a unanimous vote on a tax reduction. The facility will be the first of its kind for the state and will begin construction in November of this year.

The vote for the tax reduction was held earlier this week and passed with a 4-0 vote, of which District 3 Commissioner Gary Long was absent. With this passed, it opens the doors for WM to build the roughly $57 million RNG facility which will be located near the Salem Waste Disposal Center.

According to Micheal Beedie, WM manager of Government Affairs, the company will be able to use the methane gas emitted from the nearby landfill and use it in WM’s trucks and potentially other commercial purposes.

"By capturing and converting methane emissions from our landfill operations into RNG, we aim to help mitigate greenhouse gas and criteria air pollutant emissions in Alabama and advance the state's energy goals to transition towards a cleaner, more renewable energy portfolio," WM said in a statement.

With construction starting this year, the company anticipates it being complete by December 2025.

Commission documents report the total investment of the project as $56.8 million, with $24.2 million being for construction costs, $23.9 million in machinery and equipment costs, and $8.7 million for engineering, commissioning, and other contingent costs. The new facility will create between 10 to 15 jobs that will be mostly at the management level, said Beedie.

"As part of our sustainability initiative, we are going to invest over a billion dollars over the next three to four years in renewable natural gas projects and recycling projects, and this will be the first of its kind in Alabama," Beedie said.

The company continues the expansion of its RNG division with this new facility, which brings WM to 20 RNG facilities that are either currently operating or are under construction. Leanoard Finegold, senior director for indirect taxes with WM, said that the company has another 18 facilities “on the drawing board.”

WM is rolling through 2024 with new facilities opening and beginning construction, but the company has been dominating headlines with its acquisitions. Back in June, WM completed an acquisition of Winters Bros. Waste Systems, which includes Winters Bros.’ hauling operations, long-haul logistics, and 12 transfer stations on Long Island.

In other news, WM closed out the second quarter of 2024 with an operating EBITDA margin of 30 percent, a first for the company. The company attributes this success to a focus on operational efficiencies from tech investments and pricing strategies.

Source: Opelika-Aubrun News