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os-03-012-11-os
May 6, 2009
Mr. BillWhite, CAO
OWEN SOUND, ON
N4K 5N5
Re:
Anaerobic Treatment of Septage, Biosolids and Corn Stover to Produce Biogas, Electrical
Power and Treated Biosolids
Dear Mr. White:
Please find the following attached with regard to the Building Canada Fund Application for Grant for the
above noted project:
1.
2.
3.
Copy of the completed Application for lntake ll for the Building Canada Fund submitled on May 1,
2009.
Business Plan which includes cash flow statement and letters of support.
Tables 1,2, 3 and 4 regarding detailed cost estimates, operating costs, cost benefit analysis and
cash flow.
4.
5.
6.
7.
lf you should have any questions with regard to the application, please contact me at this office.
Yours truly,
GENIVAR Consultants LP
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Page
I of 13
I oVoltff>ontarfo
C^anad
Building Canada Fund - Communities Component
Application Report
Prolect Number:
27686
I.
(addltlonal):
R.R. #3
Iown/Clty:
Provlnce:
Postal Code:
Jwen Sound
)ntario
N4K 5N5
R3
lown/Clty:
)wen Sound
l'elephone No.:
s19\ 376-2729
Fax No.:
is19) 372-1620
Provlnce:
Postal Code:
Ontario
!4K 5N5
EmallAddreee:
white
oeoroianblutfs.on.ca
fown/Clty:
)wen Sound
felephone No.:
:519) 376-7612
Provlnce:
Fax No.:
i519) 376-8008
Poetal Code:
Ontario
\4K 2K8
Emall Addrese:
oss.slauohter@ oen ivar.com
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Number:
'ou will be requlred to provlde a copy ol a Local Government Reeolutlon
supportlng thle
Township of Georgian Bluffs has approximately 4,540 septic systems and holding tanks in the
ty. The existing wastewater treatment plant treats septage and hauled sewage but is not
to treat allseptage within the Township of Georgian Bluffs. The Township of Chatsworth is
to have approximately 2,7$ septic systems and holding tanks and does not have a
treatment plant for treating septage. lf this project is not approved, spreading of untreated
on agricultural land willcontinue. Also, treated biosolids will be spread on agricultural land
have odours and bacteria in this waste. lf the biosolids go through thE anaerobic digester
is being proposed for the Township of Georgian Blutfs and the Township of Chatsworth, this will
/ remove the odours, have 99.5% inactivation of pathogens and will have a significant
in tonnes of carbon (CO2) through the burning of methane gas (biogas) to produce
. lf this project is not approved, less electricity will be produced from a green source (i.e.
The project is to construct an anaerobic digestion system to treat septage, biosolids and
agriculturalproducts to produce biogas, electricalpower (using a 100 kW gas generator) and
I biosolids at a project cost of $2,500,000. The project is to service the Township of Georgian
and the Township of Chatsworth and surrounding municipalities for treatment of biosolids and
This project will be a good example for other municipalities for treatment of their septage
biosolids. There will be a transfer of information to other municipalitles and the agriculture
. lt is expected that completion of the final design drawings, specifications and approvals can
td out by September 15,2009 and the project can be tendered at this time. Construction
start on October 22,2009 with Substantial
on June 30, 2010.
of
New Construction
No
lntend to
Yes
a buelness olan wlth
Yes
Prolect Locatlon
Do you lntend
to upload an eleclronlc copy of the Prolect Slte Map wlth vour appllcatlon? Yes
Profect Street Address Llne 1:
Prolect Street Addrese Llne 2:
Prolect Town/Clty:
Prolect Provlnce:
fownshio of Georoian Blutfs
Jntario
Prolect Neareet lnterscllon or Legal Land Locatlon:
South half of Lot 4, Concession Vl (former Township of Derby),
lownship of Georoian Blufls
Provlnclal Zonez
Prolect Latltude:
Prolect Lonqltude:
Jont Prolect Appllcant Informatlon (#1)
Appllcant Name:
fownshio of Chatsworth
Street AddresdP.O. Box No.:
116837 Hiqhwav 6
R1
bwn/Clty:
t/VillMoore
Street AddresdP.O. Box No. (addltlonal):
Code:
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ct Fax No.:
794-4r',99
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Olt}stzCf,lg
' ls the prolect conslstnt wlth all appllcable land-use and resource management plans?
Page 4
Yes
No
No
No
'Wlll tho prolect be planned, constructed and operated ln a manner lhat takos lnto accounl
,lsks related to oxtremo natural events and/or cllmato chanqe?
SECTION
rroct Sub-Cateqorv?:
of 13
Yes
t4.2
enewable electricity generalion facilities (less than 1MW)
15.8
\l/A
ll thc prolect lnvolves the uge ol chlorfne dlslnfsctlon procoeaos, pleaee afflrm that lt lncorporatee chlorlne rernoval
rocese?
\/A
lfthepro|ect-lnvolvegthocon9tfuctlonolnewormaterlalrehabllltatlonorexpanery
lrealmont and management facllltle, please afllrm that lt wlll meet appllcable provlnclaUfederal regulatlons and
lcenslng requlrementl.
fe9
Wlll.an lnlegrated watersh_od management plan be lmptomentod wlthln two yearo of prolecl approval, that lncludeg,
It mlnlmum, a Sewer Uso Conlrol Program , supported by approprlate compllance and inlorcb'menl pollcles,
ncludlng munlclpal sewer uso by-lawe, demand managomont (lncludlng meterlng and prlclng, wher approprlate),
,rocels optlmlzatlon straleglss, and enorqy manaqement?
fes
Wlll full llts cyclc cost accountlng ln reepect of wsstewator lntrastructure assstg that taieC tnto account resourcos
'equlred,for ongolng operatlon, malntenance, upgrades and replacement bo lmplemonted wllhln two yeara of profect
rpproval?
Yes
How wlll cost recovery bo pursued and how wlll capltal and operatlng and malntenancc shortlalls, lf any, be
ddressed?
xplan4on: Cost recovery will be pursued by obtaining $106,600 in electrical sales per year and
)ping fees for septage and biosolids of $45/m3. The annualestimated operating cosi is
227,1001yar including engine maintenance, purchase of com stalks, piiot oilad disposalof
,ated soptage/biosolids. The annual net revenue from tipping fees and electricalpower sales
inus operating fees is expected to be $339,400. However, in the first few years tlie revenue may
I somewhat less due to less septage. The operating shortfalls willbe made up from the expected
It revenue from selling electricity and tippng fees for septage and biosolds. Ths revenue will be
ilized for any shortfall on capital to complete this facility and put together a reserve fund to ensure
at adequate improvements are made over the years for this project to last 20 to 30 years. Payback
the capital costs is estimated to be approximately 9 years with no grant provided aequate
ptage and bosolids are received at the facility. lf inadequate septage is received in the first few
ars then more corn stalks or waste agricultural products can be purchasd. There may also be
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waste products such as grease that eventually may not be able to be received at this facility
there would be a tipping fee. The payback period for the capital costs for the Townships of
n Bluffs and Chatsworth will be significantly reduced if 1/3 funding is received from lhe
Govemment and 1/3 funding is received from the Provincial Government for this project.
funding from provincialand federalgovernments, this proiect would not proceed.
Plaso llst any other wator demand management meaaures ln place or to bo lmplemented (e.9. educallon,
lor qrev watr svstems. meterlno. lull coet
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Appllcable
Benellt?
lncreased
of clean-enerEy technolosies in Canada
lncreased nstallation of clean energy technologies, improving air quality and
rc
T
rc
rr
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|TheTownship.ofGeorgianBlutfshasapproximatelya,saoseptrcsystery
The
existing wastewater treatment plant treats septage and hauled sewge but is not
lmunicipality.
treat
all septage within the Township of Georgian Blutfs. The Township ol Chatsworth is
ladequate.to
have
to
approximately 2,790 septic systems and holding tanks and doed not have a
lestimated
lsewage treatment plant for treating septage.
lf this project is not approved, spreading of untreated septage on agricultural land will continue. Also,
treated biosolids will be spread on agricultural land that willhave odours and bacteria in this waste. lf
thetiosolids go through the^anaerobic dlgester that is being proposed for the Township of Georglan
Blutfs and the Township of Chatsworth, this will essentlallyiemove the odours, have 9b.5%
inactivatlon of pathogens and willhave a significant reduclion in tonnes ol carbon (CO2) through the
bu.rning of methane gas (biogas) to produce electricity. lf this project is not approvd, lebs electricity
f_Qeptage Management Plan for the Member Municipalities of Grey County was prepared in March
2004. However, as an overall pJoiect for the County of Grey, this did not go fonrard nd thus the
ownships of Chatsworth and Georgian Bluffs are interested in being proctive with regard to
lreatment of septage and biosolids using an anaeroblc digestion sys[em to produce biogas
- and
aleclricalpower.
l.
proposed
enclosed.
This section should indicate how the project would improve or fix the probtem stated in ttre 'eroea
Rationale'section. lt should explain why Federal - Provincialfunding is required to enabte the
oroct to praceed, increase its scope (size) or allow it to proceed erlier than originatly plannad.
lnclude a briel explanation ot a) how the project supports the local devetopmenttan ior tne
community and b) how the project willaffect the social, economic and/or natural'environment of the
nunicipality.
tis project will proyide for the trealment of septage so that treated septage which is basically
lourless and has 99.5% inactivated pathogens will be spread on agri.cultural land after treating
ther than untreated septage This project will also reduce the toneJof carbon (CO2) being emitted
m untreated septage by producing biogas and burning this gas to produce electricity. Sice
raerobic treatment of septage to produce electricity has not been carried out in the Province of
Itario then this is an innovative project and requires Federal/Provincial funding to enable the
oject to proceed.
tis.project will be an example for other municipalities in Ontario. Without the funding the
lnicipalities cannot afford to enginee construct, commission and monitor this projct.
is project supports the local development plan by providing adequately treatecj setage and
solids, local residents will have less odours and pathogens that could-atfect the sireams and
ies and the enjoyment of lheir properties. This project will provide added value to waste from farm
duce in the localfarming communty.
is project will reduce odours from septage and biosolids which are spread in agricultural land in
I community. This wll provide for a more friendly social and natural environmet. This project will
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ove lhe natural environment by burning biogas and reducing significant tonnes of carbon (CO2)
would be released to the environment. The economic environmenl will be improved for local
ers by adding value to the agricultural waste products.
t.
iosolids.
l.
i.
Descrle any lnnovallvo technoloqv thal wlll be emoloved durlno the reallzatlon ol the orolec't.
Provide details on the technology to be incorporated in to the proposed projeot. Focus on new
approaches, best practices and whether the project uses the best available technologies (that are
economically feasible) or innovation to address the problem.
The following technologies are incorporated into this proposed projec.t.
1. Anaerobic digestion of organic matter from septage, sludge and waste products from agriculture
(such as corn stover).
2. Burning of biogas in a gas generator to produce electrlcity.
3. Removlng the odours and inactivalion of 99.5olo of the palhogens by treating the septage.
Ihe anaerobic treatment of septage to produce electricity is a new and innovative approach which
las not been carried out in Ontario. This project will bE a good example for other municipalities in
Cntario and Canada for treatment of septage and producing electrlcity. This general technology has
een used in Europe for approxlmately 3000 to 4000 facilities to treat animalmanure and corn silage
o produce electricitv.
l.
What aro thc slgnlllcant prolect rlsk and what ls vou stratoov to mltlqate those rlskg?
Risks are uncertainties or constraints that may prevent the project from completing on time, on
budget, or in its original scope. Few projects are completely without risk, however, most successful
oroiects manage or mitigate their risks through good planning and on going management. lndlcate
any known risks (such as shott construction season, possible uncertainties in building site that might
influence cost, etc) and specify how those uncertainties may impac:t the performance of the project,
gither in duration, cost, or meeting the requirements. Then indicate what actions ara possible in
advance or durino the proiect to reduce the efect of the risk hitioatioil.
We do not envision any significant project risks regarding this project Some minor risks which we will
develop strategies to mitigate are as follows:
1. Continuing Approval for a Standard Offer Contract with the Ontario Power Authority - Since we
are in the orange zone Hydro One will still accept projects up to 250 kW from biodlgesters that utilize
uploTo/o or more of agriculturalwaste products We have already shown how this project is viable
using over 75o/o agricultural waste material Alternatively, more septage and biosolids could be
treated when adequate electricalpower transmission lines are construcled and this area is removed
from the orange zone.
2. Approximately 3,000 to 4,000 of these types of projects have been completed in Europe utilizing
manure and agricultural products Since this has been utilized throughout Europe the risk should be
minimaland can be mitigated by good management of the waste going into the biodigester and
proper operation of the biodigester
3. Construction of the biodigesters are similar to facilities that have been constructed at wastewater
ireatment plants for 50 to 80 years in Ontario Therefore, construction of the concrete biodigesters as
r significant part of lhis project should be carried out reasonably with experienced contractors.
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lblo Cogte:
rffmlD
f#t{ffif't
l!]lrrFtill
rEEm,rfin
lblc Costs:
I
I
IIIEFEIN
Irnrrr
-EEr,r,lmrfil
rr
I*rfiilll
IIIT
Irrl
rilrTt
fftilfin
I{Flilf'n
fnff'lilf'fil
Ef'?ll.lv.ir
f'nfrrmfml
rilTt
Effilf'l
Taxes (or HST)
ITTT
Ef,ff'filf"!
EfiTff'7'TT!
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lotal
/o
of Coste
Provincla
Federal (BCF-CC
Other Federa
Other
833.333.3r
lBcF-cc
833.333.
833.333.3f
0.0c
0.0c
33.330/,
33.3301
33.3301
oo/,
001
Tota
2.500.000.0(
10001
re
lndlcatc thc person who ha verllled that tho prolect cod esllmato! alo accuratc, a woll ae the datc
:unds?
'ther
Other
thl a multl-stagc prolect? lf so, pleaec lndlcatc whlch stagc. Pleagc notc that each phaec
usl bc able to bo consldered a stand-alonc prolect.: No
the prolect requlrc thc borrowlng of lunds?: Yes
Townshlp of Georgian Bluffs and Township of Chatsworth will have to formalize financing
ch for the protect. For ineligible costs incurred to date the two municipalities have split costs
Georgian Blutfs will likely fund its 50% share with a short term debenture paid baclifrom
the prolect aorvc commorclal operatlone?: Yes
projegt would service commerclal operations within the municpalities of the Township of
sworth and the Township of Georgian Bluffs, and possiblv facilities in the surroundln area.
thc appllcant havc a plan to fund, operatc, and malntaln thc assot ovor ltr lllecycle?:
applicant plans to fund, operate and maintain the asset over its 20year lifecycle from revenue
electrical power and tiopino fees for seotaoe.
nse afflrm that thc conlract award procoss wlll bc compotltlvc, falr, and transperont (e.g.,
eole-eourcc contract, no unlon-only proceesee) and consletent wlth thc Agreemento
Tradc and Canada's lnternatlonal tradc obllgatlone.: Yes
stete who wlllown the aeget ln whlch the lnlrastructurc lnvestment le belng madc.:
rip of Georqlan Bluffs
Documents Uoloaded
Descrlptlve Tltle
Fllsname
Feasability_Study_Aug 2008.PDF
3C
losts
m un
Dato
Uoloaded
2009-0s01
2009-0s)1
2009-0501
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ffi
m
m
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torage?
)oes the project involve electric vehicle refueling stations?
I )oes the roiect involve biofuels distribution or sloraoe?
c )oes the project involve
thermal heaUcoolinq, includino district enerov svstems?
f( Doos the proiect involve clean coal facilities?
11 Does the projed involve municipalrenewable electricig generation such as wind energy,
olar enerov?
12 lf the project is for the purpose of lmproving energy efficiency, does il involve construction
of a new or expansion of an existing municipal buildins or facility?
13 lf the project is for the purpose of improving energy etflclency, does it involve modiflcatlon
f an existins municipal buildino or facilitv?
14 )oes the projc't involve works or activities on, under, over, through or across a water body
uch as a wetland, stream. river or lake?
1t )oes the projsc,{ involve works or activities within 30 metres of a water bodv?
No
No
No
No
No
No
No
No
No
No
Yes
No
No
No
No
Please fill out the information for Environmental Assessment contact verificatlon.
Name of EA
Bill White
CAO
177964 Grey Road tg, RRg, Owen Sound, O N4K SNi
Phone Number of EA
(519) 976-2729
Contact:
Position:
Address:
Contact:
Email:
bwhite@georgianbluffs.on.ca
ANALYST CHECKLIST
1
l. Envlronmental Conslderatlons
ls the project located within 30 metrs of a water bodv or wetland?
Does the proiect involve phvsical works or activities in water?
s this project consistent with provincal legislative requirements and management plans for
ls a provincialenvironmentalassessment
rights?
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Application Report
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