EDL managing director Mr Paul Whiteman said that although the company still had to finalise the commercial terms and negotiate contract documentation, the project was a positive step forward in its USA development plans.

"The Cedar Hills project will utilise combined cycle gas turbine technology rather than our standard modular engine type approach," Whiteman said.

"The technology solution proposed is similar to that already used at EDL's existing Pine Greek plant (Northern Territory). We also have experience in operating gas turbines in our UK operations.

"While gas turbines have been utilised in landfill gas projects before, their commercial viability is maximised in projects of this large scale."

Mr Whiteman said the bidding process had taken approximately six months and EDL had budgeted a further six months to complete the outstanding administrative matters before commencing the project development program. This timetable would see the plant operational in early to mid 2004.

Electricity is generated from landfills (ie rubbish tips) by anaerobic microbes converting rubbish into gas, which is then collected by a network of drill holes and pipes.