I'll conclude the presentation. There are three slides left with respect to what's left in our plan.
We are about to embark on a request for qualification process to attract a partner to develop the biofuel facility. The city is very grateful to have received funding from the P3 Canada Fund, late in 2012. P3 Canada will provide up to 25% of the capital cost of the facility. The facility's cost is estimated to be $68 million, so that's approximately a $17-million contribution from the federal government in that regard.
Following the request for qualification, there will be a request for proposals in mid-2013, the selection of a partner late this year, and then move toward construction of the facility, which we expect to be operational by 2015.
As far as the system-wide benefits are concerned, I'll refer you to slide 13. The environmental benefits are that 80,000 tonnes of organic waste will be diverted from landfill annually. Currently much of the waste within this region is trucked on a daily basis to a landfill that is 350 kilometres northeast of the region. This will effectively cut off the transition of that waste from this region to a distant landfill. The future facility is estimated to produce approximately 320,000 gigajoules of natural gas, which equates to approximately 6.9 million litres of diesel annually. It's quite significant. We estimate that would fuel approximately four times the fleet size that it takes to collect waste in the city of Surrey. That gas will not only be used by the city, but it will be placed on the market. It's a carbon neutral gas, given that it's stemming from organic waste—food waste and yard waste—versus a gas stemming from the grid.
The CO2 equivalent reduction is estimated to be approximately 23,000 tonnes.The significance is that it will offset the City of Surrey's corporate emissions, which are estimated to be 16,000 tonnes per year. As far as the economic benefits are concerned, as I mentioned earlier, our annual saving in waste collection is approximately $3 million per year. Annual fuel savings, alone, are $1.2 million, which is incorporated within that $3 million savings.
The cost of the CNG vehicles is approximately 20% higher than traditional diesel vehicles, but the return on investment is very fast, at two years. The typical life of these vehicles is approximately 10 years. Annual savings of organic waste versus garbage disposal will be approximately $600,000 per year. The sale of the renewable gas is estimated to be between $4 million and $5 million.
What's very important is that there's a real made-in-Canada story here. The CNG trucks used by the city are comprised of Cummins Westport CNG engines. The head office for research and development for that engine is in Vancouver, B.C. The bodies of the trucks are from Mack, which is a U.S.-based production, but the truck is assembled in Quebec, in the city of Saint-Nicolas.
With that, we thank you again for allowing us to provide our presentation, and we look forward to your questions.