City’s landfill gas project hasn’t gained any steam after four years

Four years after the city initiated a project to transform landfill gases into renewable energy, the lack of buyers is impeding progress. The initial annual fee was set at $205.00 plus GST for one year, with subsequent renewals at $233.00 plus GST every 52 weeks, amounting to a 10% discount off the regular annual price of $259.35. This offer is reserved for new and qualified returning subscribers, with the option to cancel at any time.

The city's ambitious plan to convert potent landfill gases into renewable energy took off in March 2022 when council directed staff to finalize a deal with Integrated Gas Recovery Services. The agreement would allow Winnipeg to serve as a raw landfill gas supplier, potentially generating millions of dollars in new revenue. However, the project has encountered various obstacles since its inception.

Michael Gordichuk, the city's manager of solid waste, acknowledged the numerous hurdles faced during the process. In July 2025, a finalized contract was anticipated by the end of that year or early in the current year. This deadline stemmed from an extensive process of obtaining provincial approvals, which city officials described as the first of its kind in Manitoba.

However, the project now faces a new delay as the city struggles to find a buyer for the significant amounts of renewable natural gas required to make the project viable.

Gordichuk highlighted the challenges in attracting a long-term buyer, noting that the United States government recently introduced incentives such as a 30% input tax credit and a production tax credit ranging from $6 to $8 per gigajoule for facilities generating this type of renewable fuel. Unfortunately, Canada lacks comparable subsidies, putting Canadian renewable natural gas at a disadvantage compared to its U.S. counterparts.

Gordichuk explained that this 10-fold increase in cost makes Canadian renewable natural gas less competitive in the market.

Although the landfill gas conversion plan remains a priority for the city, Gordichuk emphasized that it has not been ruled out and that the team is committed to making it happen. In 2022, the city projected potential earnings of approximately $10.5 million over 20 years by selling the gas. At that time, Integrated Gas Recovery Services was expected to cover the $22-million capital cost and $2.5 million per year in operating costs. However, no cost estimate was provided for the revenue the company would generate.

City Coun. Brian Mayes, a long-time supporter of the project, expressed frustration with the four-year delay, calling for a decision by the end of 2026 or the termination of negotiations and exploration of alternative options. Mayes stressed that the financial impact of the project may have changed, and he believed councillors should have been adequately informed of this development.