Answering the Call for. Class A

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1 Answering the Call for Class A

2 Filling a Need Through Innovation, Technology and a Public-Private Partnership in California

3 GREG BAATRUP, P.E. General Manager FAIRFIELD-SUISUN SEWER DISTRICT & JAMES DUNBAR, P.E. General Manager, Business Development Manager LYSTEK INTERNATIONAL BIOFEST 2017 BIOSOLIDS Beyond a Movement October 16, 2017 Portland, Oregon A PROGRESSIVE PARTNERSHIP FOR BIOSOLIDS & ORGANICS MANAGEMENT

4 OVERVIEW Northern California past practice The Coalition The Last 10 Years Fresh and False Starts California Pushes the Buttons (Regulations) Fairfield-Suisun Sewer District & Lystek Common Vision Shared Goals Lystek Technology overview Product Opportunities Future Developments

5 Northern California Past Practice Historically a diverse and secure practice of biosolids solutions: - Land application for agriculture - Composting - Direct land disposal - Incineration - Landfill (both ADC & disposal) 50% in Summer months 90% in Winter months

6 The COALITION Bay Area Biosolids to Energy (BAB2E) Coalition formed in 2006 (6 founding agencies) The agencies agreed to cooperate to plan, advocate, and analyze biosolids management solutions for the Bay Area. Early effort was focused on obtaining grants for energy generation from biosolids Coalition expanded to 19 agencies over the subsequent decade

7 The COALITION Mission Statement: The mission of the Bay Area Biosolids Coalition is to develop a diverse and robust portfolio of beneficial biosolids resource recovery projects for the San Francisco Bay Area.

8 The Last Decade Fresh and False Stats Early RFI s and RFQ s were requested to explore the available technologies Goal was to initiate a regional project for multiple agency participation Grant funding was secured from State of California for an initial demonstration project Real interest was shown from private companies But in the end, a project was not started and the grant funding was lost

9 But Time Marches On. Coalition maintained its role as a forum for agency collaboration and a potential incubator for emerging technologies In 2012, the Coalition allowed individual agencies to pursue biosolids management projects, including regional approaches But a changing energy and economic landscape made some technology pursuits a challenge

10 California Pushes the Buttons New Regulations California begins a series of new regulations focused on recycling and diversion from landfills Emphasis on green house gas reductions and better utilization of organic waste (biosolids included) Short and long-term goals; local agencies also add their own regulations Regulations look for private solutions but offer little in the way of incentives Lystek International enters the California market with a fresh look

11 Fairfield-Suisun Sewer District & Lystek International In 2013, Lystek International began business and market development in California FSSD also had its vision on alternative solutions (historical practice was landfill ADC) In 2014, Lystek opens its first US office in Fairfield A Public-Private Partnership was used as the framework for project development

12 PARTNERSHIP OVERVIEW Fairfield-Suisun Sewer District (FSSD),established in 1951,is a special district serving 135,000 people in Fairfield and Suisun City in Solano County Approximately 60 full-time employees Advanced Secondary treatment with a permitted ADWF capacity of 23.7 MGD, 510 miles of sewers 2015 ADWF was 9.8 MGD CWEA 2011 Medium PoY CWEA 2014 Large PoY

13 PARTNERSHIP OVERVIEW cont. Lystek International is a Canadian-based company; US office opened in Fairfield, California in 2014; office in Boston, MA in 2015 and Pittsburgh, PA in 2016 Ownership is private, with experience in waste, construction and technology Patented Lystek technology in US/Canada since operating sites + 2 under construction in Canada 1 operating site + 1 under construction in USA Business model is DBT & DBOO

14 FAIRFIELD-OMRC OVERVIEW Letter of Intent signed in year Lease Agreement in June 2015 Allows un-used assets and infrastructure for Lystek to design/build/own/operate processing facility called the Organic Materials Recovery Center (OMRC) Establishes a pricing structure with incentives for increasing WWTP efficiencies and profit sharing on end product sales Facility was operational in August Lightning Speed!!!

15 Lystek OMRC Fairfield-Suisun Sewer District Treatment Facilities

16 COMMON VISION SHARED GOALS Lystek Upgrade Biosolids Management Increase Energy Production Implement Technology in US Eliminate Dewatering FSSD Sustainable, Long-term Solution Long-term agreement Create and Sell Diverse & Marketable Products Regional Solution Expand technology to other organic streams Support local economy (jobs) Class A EQ Biofertilizer Regulatory Compliance

17 LYSTEK TECHNOLOGY OVERVIEW Low Temperature/Physical/Alkali/Hydrolysis Technology, typically installed after dewatering Produces multi-purpose products: - LysteGro: Nutrient-rich biofertilizer Class A EQ (US EPA) high organic matter & NPK; - LysteMize: Digester re-feed enhancement to increase gas production (30%+) and reduce biosolid volumes (20%+) - LysteCarb: A cost effective, alternative carbon source for Biological Nutrient Removal

18 LysteGro Overview Competitive / substitute to synthetic fertilizers Desire to improve soil health with an organic material that includes many micro-nutrients LYSTEK product is easy to transport and apply with minimal nuisances Class A-EQ designation meets the highest standards

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20 LysteGro Land Application Activity In 2017: +1,000 acres and 3.5 million gallons of LysteGRO were land applied in Solano County; farmers paid a competitive rate (but still less than the value of product)

21 LAND APPLICATION PROGRAM 2017 PICTURE: Lystek Land Application Injector and LysteGRO transport tanker (2017) "It's important that we look for ways to improve the health of our soils without a heavy reliance on synthetic fertilizers. In Solano County, bio-fertilizers are being manufactured in a resource recovery process from biosolids and organic waste. These final products can add needed organic matter and micro-nutrients to replenish soils for a better future....jim Allan, Solano County Agriculture Commissioner

22 PICTURE: Safflower field used with LYSTEGRO biofertilizer soil amendment (2017) As a no-till farmer, I found the LysteGro application process very compatible with my farming practices. The soil disturbance was minimal and did not interfere at all with my planting practice..neil Anderson, Solano County safflower farmer

23 MORE LAND APPLICATION PICTURE: LysteGRO Land Application Equipment on Solano County farmland (2017) The use of biosolids provides a valuable renewable source of nutrients and soil structure enhancement for the agricultural industry. Treatment of biosolids into a liquid fertilizer, with sub-surface application at computer system-controlled loading rates, allows for an additional level of management of nutrient loadings and for ensuring compliance with US EPA regulations. We support innovative technologies such as this which provide benefits to generators and enhance the quality of the product for end-users. -Lauren Fondahl, Biosolids Coordinator, USEPA, Region 9 San Francisco, California

24 LysteMize Overview A multi-purpose, hydrolyzed product for Anaerobic Digester Enhancement: Re-feed 30% (or more) of product into AD Improves efficiency of digester performance Increases biogas yields by 30% or more Reduces biosolid volumes by 20% or more

25 LysteCarb Overview BNR processes require specific COD:N:P ratios as organic matter is used for denitrification and enhanced biological phosphorus removal (EBPR) BNR processes requires availability of carbon and readily biodegradable COD (rbcod) i.e. short chain or volatile fatty acids (VFA) such as acetic, butyric, propionic acids, as well as simple sugars (glucose), and alcohols (methanol, ethanol, etc.) Lystek biosolids can provide a cost effective source of readily available and biodegradable carbon material which can substitute for methanol, glycerol, acetic acid

26 PRODUCT OPPORTUNITIES Synergistic with the Healthy Soil Initiative (CA) Builds organic matter; improves soil moisture retention; increases root growth in soil Increasing restrictions on current disposal methods (land application, landfills, etc.); greater diversion % Product sales to generate additional revenue stream Alternative / dry products to expand marketability (mulch, compost, soil additives, ground-cover, etc) Improves anaerobic digester performance & increase biogas for co-generation of electricity

27 FUTURE DEVELOPMENTS Utilization of excess capacity at FSSD will allow for additional/large-scale research on organics and high-strength material processing Modify technological process(es) to enhance product output; >solid content or nutrients Continue with R&D on alternative end-product development; blending and dry products for greater diversity of applications Market expansion in California and the US and beyond??

28 Thank you & discussion FSSD Greg Baatrup Lystek Jim Dunbar Nothing wasted. Everything to gain. Lystek International Ltd, Fairfield, California t: e: w: s:

29 Portland at Night