HomeMy WebLinkAbout04.a. Discuss a request from Anaergia to lease a portion of the Kiewit property to develop a bio-energy project Page 1 of 3
Item 4.a.
CENTRAL SAN
February 22, 2021
TO: REAL ESTATE, ENVIRONMENTAL AND PLANNING COMMITTEE
FROM: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES
MANAGER
REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL
SERVICES
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: DISCUSS A REQUEST RECEIVED FROMANAERGIA SERVICES TO
LEASE A PORTION OF THE KIEWIT PROPERTYTO DEVELOPA BIO-
ENERGY PROJECT
Central San has received a request (Attachment 1)to lease a portion of the Kiewit property to develop an
Anaergia Bio-Energy project that could benefit both Central San and the region. As proposed, the project
would be completely independent from Central San with no commitment of inputs and would be a lease
only endeavor at this time, but could be interconnected with treatment plant operations. Anaergia has
requested a commitment for the land after a one-year period, so they can perform a feasibility study to
build a financial model and to secure other partners. Anaergia is hesitant to dedicate resources to the study
unless Central San can assure them that the land will be available for lease at the conclusion of the study.
Anaergia has provided a high concept process flow diagram (Attachment 2)that could provide benefits
beyond a typical lease arrangement. The dotted lines represent interconnections that could potentially be
achieved. Staff would need to perform its own feasibility study, utilizing the On-Call Agreement, to see if
these interconnections have merit for Central San. Staff will provide a verbal report to the Real Estate,
Environmental and Planning Committee regarding Anaergia's request to lease a portion of the Kiewit
property and possible benefits for Central San.
Strategic Plan Tie-In
GOAL THREE: Fiscal Responsibility
Strategy 2—Ensure integrity and transparency in financial management
ATTACHMENTS:
1. Letter from Anaergia dated February 9, 2021
2. Proposed Process Flow Diagram
February 22, 2021 Special REEP Committee Meeting Agenda Packet- Page 3 of 5
Page 2 of 3
ATTACHMENT 1
e Anaergia Anaergia Services
5780 Fleet Street,Suite 310
Carlsbad,CA 92008 USA
+1.760.436.8870
www.anaergia.com
Mr. Roger S. Bailey, General Manager
Central Contra Costa Sanitary District
5019 Imhoff Place
Martinez, CA 94553
February 9, 2021
Dear Mr. Bailey,
Anaergia hereby expresses interest in building and operating a Bio-Energy facility on vacant land to
the east of Central Contra Costa Sanitary District's wastewater treatment plant. This is the 3.56
acre parcel currently vacant plus the 5 acres currently leased by the Highway 4 contractor.
In order to determine the volume and value of inputs and outputs, a feasibility study is required.
Anaergia requests a twelve-month window in order to conduct this study at our own expense. In
exchange, we request that the described acreage be made available for our use, in its current
condition, at the end of the study period, in case the feasibility study proves favorable. If the project
is not found to be feasible, Anaergia will relinquish its option to lease the land.
In general, the potential facility would receive wet fraction of municipal solid waste and convert it to
biogas, fertilizer, and clean water.
Economic benefits of this facility to Central San might include the following:
• Rental revenue
• Biogas to replace Landfill Gas for the furnace
• Biogas to replace Natural Gas for the CHP unit
• Electricity
Non-economic benefits might include the following:
• Regional solution for compliance with SB1383
• Buffer capacity for managing WWTP residuals
• Energy resilience via nearby source of renewable natural gas
• Recycled water could be supplied to the Water Exchange program
I look forward to discussing this request, and to arranging the necessary details.
Best Regards,
Andrew Benedek
CEO
February 22, 2021 Special REEP Committee Meeting Agenda Packet- Page 4 of 5
ATTACHMENT 2
CCCSD
worOil �y Dewatering
Wastewater
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Heat and
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— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —
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Anaerobic Digester
Ammonia
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"�11.01 Lb F Thickening
Gas Conditioning 1
Biological
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CHP Feedstock Storage
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,� �� Slurry Receiving
Draft , � nrk Flow Diagram Anaergia
February 22, 2021 Special REEP Committee Meeting Agenda Packet- Page 5 of 5