Council hears M2X Energy pitch to capture landfill gas for sale; company offers $50,000 signing bonus and 10% royalty

TJ McLaclin presented a non-binding term sheet from M2X Energy proposing a long-term partnership to capture landfill gas at the regional landfill and convert it to a sellable product (the company cited methanol today and said renewable natural gas could be an option later). McLaclin said the company would build, own and operate a modular system, fully fund the project and provide the city a $50,000 signing bonus plus 10% of net revenues for the term of the agreement in exchange for gas-rights to the landfill.

Council members and staff questioned the volume assumptions and timeline. McLaclin said the firm typically sees roughly 400–500 standard cubic feet per minute (SCFM) on comparable sites but cautioned that projections would be refined only after a wellfield and measurement system were installed; he estimated 12–18 months to mobilize and suggested six to eight years as a rough payback window to recover the initial wellfield buildout from royalties. He also said typical on-site staffing would include two full-time operators and additional personnel during commissioning, and that the company’s first project is in Effingham, Illinois.

City staff and the landfill engineer, Philip Fields of Fields and Associates, explained regulatory drivers: as landfill gas production grows the state may require a gas-collection system, which creates an opportunity to capture and monetize methane rather than allowing it to vent. Fields told the council the landfill has about four to eight years of permitted life under current plans and that planned expansion and permitting activity make a gas-collection solution timely.

Councilors repeatedly asked for more precise financial projections and for documentation of the company’s references, local hiring commitments and contract terms. McLaclin acknowledged the packet did not include a full revenue model and offered to provide more detailed cash-flow and sales estimates to the council. The administration said the next step would be time for staff and councilors to review the term sheet and bring any ordinance or formal gas-rights agreement back for consideration.

The record contains an inconsistency: during the presentation McLaclin identified himself and the company as M2X Energy, but at one point the transcript records him saying “Ben Energy.” That discrepancy appears to be a transcript or verbal inconsistency and staff said they would clarify company identity in the materials provided to council members before any formal action.