An approval of a resolution was accepted to execute a 20-year lease agreement, with an additional 10-year optional renewal, between the FSSD and Lystek for the development of an Organic Materials Recovery Center at its Chadbourne Road facility in Fairfield, California. The major terms and conditions of the Agreement are effectively complete and both parties look forward to proceeding with project implementation.
“This is an exciting day for all stakeholders”, said Rick Mosher, President of Lystek. “Approval by the Board to move this project forward is the culmination of months of positive discussion and careful consideration of the many, mutual benefits that will be realized by everyone involved in this development. This includes the FSSD, all surrounding communities looking for advanced and proven, Class A quality biosolids and organics management solutions, growers that want/need good, affordable, nutrient rich, bio-fertilizer products as well as those looking for good-paying jobs in the area “, he adds.
It is widely acknowledged that “waste” diversion and resource recovery generate substantial economic and environmental benefits while supporting and expanding the evolution towards a circular economy.
FSSD currently produces approximately 12,000 tons of biosolids per year. Under this agreement, the district will have long-term control over its biosolids management expenses. Revenue and expenses will be proportional to the volume of material processed at the OMRC, which will have a maximum operating capacity of approximately 150,000 tons per year. FSSD biosolids management expenses will effectively be capped (except for growth and small, consumer price index increases) with revenues growing as more material is brought into the new facility. Indirect benefits will also be realized by FSSD through the process of re-feeding “LysteMized” material back into its digesters to enhance biogas production for “green energy”) and through reduction in the overall volume of output.
Lystek will be responsible for soliciting third party materials to be processed at the new facility as well as all marketing and sales of the LysteGro bio-fertilizer product. As of the issuance of this release, Letters of Interest (LOI’s) have already been secured from several agencies in the Bay Area. Additional LOI’s are forthcoming. These LOI’s are expected to transition into multi-year contracts as the project moves forward.