LGP operates two power generating landfill sites including the five megawatt Tamala Park facility

north of Perth, the 4MW Red Hill east of Perth (4MW), and a 1MW diesel peaking station at Kalamunda, south of Perth.

The deal is expected to settle next month.

Tamala Park and Red Hill are underpinned by long-dated landfill gas agreements with Mindarie Regional Council and the Eastern Metropolitan Regional Council that provide exclusive rights to access gas.

Energy Developments said the acquisition was a bolt-on to its existing 84MW Australian landfill gas business which it has been operating for more than 25 years.

Further, the company has taken a final investment decision to build, own and operate a new 5MW landfill gas fuelled generation facility at the Brown County tip in Ohio, USA, following the signing of a 15 year agreement with Rumpke Waste that provides DUET with exclusive access to gas from the landfill until 2040.

It is DUET’s first project with Rumpke, one of the largest privately owned residential and commercial waste and recycling firms in the US and positions the company to potentially deploy additional capacity at other Rumpke-owned landfill sites.

Commencement of power station operations is targeted for the end of 2017.

“The acquisition of LGP consolidates EDL’s position as the leader in LFG generation in Australia,” Energy Development’s managing director Greg Pritchard said.

“EDL’s decision to build a new 5MW power station in Ohio backed by a long term offtake agreement is another illustration of our continuing success in the USA distributed generation market.”

EDL's landfill gas power stations around the world, and waste coal mine power stations in Australia abated and avoided some 13 million tonnes of carbon dioxide equivalent of GHG emissions, equivalent to removing 3.8 million cars from the road.