May 26, 2015

Fairfield-Suisun Sewer District to Develop Organic Materials Recovery Center

Lystek organic materials recovery center biosolids management

Staff of the Fairfield-Suisun Sewer District (FSSD) recommended, and the board of directors accepted, the approval of a resolution to execute a 20-year lease agreement (with an additional 10-year optional renewal) between the FSSD and Lystek Intl. Inc. for the development of an Organic Materials Recovery Center (OMRC) at its Chadbourne Road facility in Fairfield, Calif. The major terms and conditions of the agreement are effectively complete.

"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."

Lystek is a biosolids and organics management firm that is playing a role in the diversion of organic materials from landfills. The firm provides solutions that help municipalities and other generators harness waste as an economic resource thereby converting wastewater treatment plants into resource recovery centers. The OMRC will be built under a design-build-finance-own-operate model by Lystek.

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 material back into its digesters to enhance biogas production for and through reduction in the overall volume of output.

Under the terms of the agreement, 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. Letters of Interest (LOIs) have been secured from several agencies in the Bay Area. Additional LOIs are forthcoming. These LOIs are expected to transition into multi-year contracts as the project moves forward.