PHASE ONE AGREEMENT WASTE CONVERSION DEMONSTRATION PROJECT. Thomas Smith Prince William County Solid Waste Division February 11, 2014

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1 PHASE ONE AGREEMENT WASTE CONVERSION DEMONSTRATION PROJECT Thomas Smith Prince William County Solid Waste Division February 11, 2014

2 Landfill Eco-Park Unique Opportunities Award winning 1000 acre landfill with extensive environmental controls receiving 900 tons/day of refuse. 350 acres of buffer, mostly forested with a number of species of plants, trees and wildlife. Wetlands on site with a large wetlands mitigation project underway. Large open space of landfill closed areas. Supportive community and County commitment. Phase One Agreement Waste Conversion Demonstration Project February 11,

3 Eco-Park Concepts Environment Energy Education Phase One Agreement Waste Conversion Demonstration Project February 11,

4 Energy (Renewable) Landfill Gas Landfill Gas to Energy Project (6.7 MW). Heat County Fleet Shop and Fuel Animal Shelter Incinerator. Heat School Bus Garage (March 2014). Solar Power RFP issued and responses received. Beginning negotiations with company to install solar panels on closed areas of landfill. Phase One Agreement Waste Conversion Demonstration Project February 11,

5 Waste Conversion Host a demonstration project of an innovative municipal solid waste (MSW) conversion technology. On the landfill site, or Balls Ford Road site No additional cost to County rate payers. Identify qualified technology companies to design, build, finance, own and operate the demonstration plant. Select the one with the best proposal to provide and operate such a facility. RFP was developed and issued on June 20, Phase One Agreement Waste Conversion Demonstration Project February 11,

6 Waste Conversion - Eligible Technologies Technologies on the verge of commercialization and that need to be proven at throughputs of 50 to 200 tons per day (TPD) on a continuous basis. Pyrolysis, gasification, anaerobic digestion, plasma torch or other conversion method producing a fuel or energy product, such as electricity, syngas, synfuel, steam, useable heat and/or other commercial energy outputs. Preference given to technologies whose primary output is not electricity. Phase One Agreement Waste Conversion Demonstration Project February 11,

7 Ineligible Technologies Traditional incineration with waste heat recovery technologies, of either MSW or refuse-derived fuel, such as stoker-fired, waterwall, fluidized bed or modular incineration (even two-stage starved-air incineration). Mixed-waste composting technologies that use open-air curing processes. Phase One Agreement Waste Conversion Demonstration Project February 11,

8 Landfill Site Waste Conversion Site Phase One Agreement Waste Conversion Demonstration Project February 11,

9 Proposal Review Three Proposals were received on October 17, LEEP Holdings, LCC selected for further negotiations. Local Virginia Company ( Process/Sort mixed solid waste into various useable components. Recyclables (Metals etc) Sold to markets Organics - Fuel Pellet (erdf) Plastic - Lightweight Aggregate (Balkrete) Residue Landfill Phase One Agreement to implement project in a phased approach to minimize risk has been negotiated. Phase One Agreement Waste Conversion Demonstration Project February 11,

10 LEEP Phase One Agreement LEEP Project Team including independent engineering review by Cornerstone Environmental Group to provide the following: Project Schedule (45 days) Site Plan and Facility Description (90 days) Capital Cost Breakdown (120 days) Alternative Use Analysis and Review of above documents by Cornerstone (135 days) Financing Plan (150 days) Final Service Agreement Execution (240 days) Phase One Agreement Waste Conversion Demonstration Project February 11,

11 LEEP Phase One Agreement Final Service Agreement Term 13 years with option to extend for one 10 year period. Processing Throughput. Years 1 and tons/day. Years tons/day. Years 4 to tons/day. Phase One Agreement Waste Conversion Demonstration Project February 11,

12 LEEP Phase One Agreement County Financial Commitment Provide site at landfill. Pay LEEP for Processed Waste (Landfill Avoided Cost). $25.00 per ton year 1 to 4. $20.00 per ton starting in year 5. Provide 40% up to $5 million maximum of capital costs to be paid back by LEEP from project revenues. County will directly purchase capital assets (Building, Site Improvements, Select Equipment). Lease back these capital assets to LEEP for term of Agreement. LEEP to pay County for lease from project revenues over contract term (e.g. processing fees, sales of products). LEEP to finance remaining total estimated capital cost of $12.3 million. Phase One Agreement Waste Conversion Demonstration Project February 11,

13 Project Benefits Extend the life of the County landfill (4-7+ years over term of agreement). Increased recycling. Produce reusable products from solid waste. erdf sold for energy off site. Balkrete sold as lightweight concrete aggregate off site. Revenue/Cost neutral (no increase in fees). County to receive 3% of gross revenues beginning in year 5 ($260,000 per year). Prove/test new technology for future. Phase One Agreement Waste Conversion Demonstration Project February 11,

14 Project Risks Project Failure County would revert to landfilling solid waste. LEEP would remove its equipment - LEEP required to post removal bond for first 5-years of operation. Payments for County share of capital assets (maximum of $5 million) would be County responsibility. County would own assets. County assets could be reused/leased for other private recycling or waste conversion project (as previously determined). Worst case, County would be responsible for approximately $500,000 per year in debt service for 13-year term ($3.00 increase in solid waste fee). Phase One Agreement Waste Conversion Demonstration Project February 11,