The gas-flaring project is a joint effort between Bathurst Regional Council, Transpacific Industries, Country Energy and local business Renewable Australia.
A $1.4 million electricity generator is expected to be installed at the site in March.
Central to the project is new technology known as the Strategic Well Location Procedure (SWLP), which was developed by Renewable Australia.
It claims SWLP will allow the capture of about 80% of the methane produced at the landfill, with gas collection bores to be strategically located at areas with the highest methane concentration.
When the second stage of the project goes ahead around March, some 0.5MW of electricity will be generated at the site. This will be used to power site operations and is expected to meet the energy needs of about 500 homes once connect to the energy grid.
Deriving power from the landfill gas will reduce greenhouse emissions by 10,000-15,000 tonnes of CO2 per annum.
Bathurst Council waste manager David Swan said the landfill is relatively small, receiving about 35,000 tonnes of waste a year, and it is rare for such a gas capture project to go ahead at a landfill of this size.
