An electric deal that "ticks all the boxes" has been celebrated by Napier and Hastings councils.
Electricity from the Omarunui landfill, jointly run by Hastings District Council and Napier City Council, has been generated since October.
Using gas produced by Napier and Hastings it produces enough electricity to supply 1000 homes.
At a celebration of the successful scheme at Havelock North Community Centre yesterday Mr Yule said harmful gases that once escaped to the atmosphere, then later flared, were finally being used efficiently.
Hastings District Council was also in partnership with the power scheme operator, Pioneer Generation.
"Hastings District Council exercising its option to take a 40 per cent stake in this was a bit of a novel exercise for us, but it actually ticks all the boxes," he said.
"It allows us to show best practice, to reduce methane emissions and greenhouse gases, get a commercial product out at the end and make some money at the same time, which is great."
The landfill takes 72,000 tonnes of waste per annum from the two councils and compacts it.
The gas it produces is about 50 per cent methane with the remainder mostly carbon dioxide.
There are 36 wells throughout the landfill which provide a combined 600cu m of landfill gas per hour.
The flaring tower will continue to stand, to be used during maintenance periods.