California’s Orange County has starting a $60 million landfill gas-to-energy operation near Irvine.

The facility, which should be operational by early 2016, is being established at the 725-acre Frank R. Bowerman landfill east of Irvine. It will capture gas at the landfill, one of the largest on the West Coast, and covert it to about 160,000-megawatt hours of electricity, which will serve about 18,500 homes, according to a news release.

Bowerman Power, a subsidiary of Pittsburgh-based Montauk Energy, is building and will operate the 113,000-sq.-ft. facility. Caterpillar Financial Services provided the financing.

The electricity will be sold under a 20-year agreement with the city of Anaheim through Anaheim Public Utilities to power residents, schools and businesses in the city.

The plant’s Caterpillar reciprocating engines will feature gas cleanup and emissions reduction technologies to meet all government air quality requirements.

Orange County will receive an average royalty payment of about $1.62 million annually. It will be the county’s fourth gas-to-energy facility, which together produce 400,000 megawatts of electricity.