Under the contract, PHGE will develop a downdraft gasification plant capable of converting up to 64 tons a day of blended waste wood, scrap tires and sewer sludge into a fuel gas to generate up to 300Kw of electricity.
The downdraft gasification plant is scheduled to be commissioned in early 2016.
Lebanon Mayor Philip Craighead said: "The feedstock material is broken down at very high temperatures in a sealed vessel, and about 95% of what goes into the gasifier comes out as the fuel gas."
Power generated from the waste-to-energy plant will be used for its internal power needs and also be supplied to the wastewater treatment plant on the premises.
PHGE president Tom Stanzione said: "This is the same basic technology we utilized in all our previous designs, and we have upgraded capacity and power density to accomplish a lot more gasification in what is not a lot more space."
The $3.5m plant is expected to help avoid 8,000t of landfills each year.
"We see keeping our garbage out of the landfill and using it to make energy as major goals for Lebanon in coming years. This is a problem that is coming straight at all of us, and we are going to make sure our city is ready with answers," Craighead added.
