SYNAGRO CAWPCA October 27, 2011

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1 SYNAGRO CAWPCA October 27, 2011

2 SNAPSHOT: Synagro Synagro is the nation s leading natural waste recycling company

3 WHAT WE DO We execute smart, efficient and integrated solutions to unique waste treatment and conversion needs. Because Guarding our natural resources means not just treating waste challenges, but transforming them into robust, state-of-the-art, sustainable solutions with practical applications for people and planet. CLEANING TRANSFORMING PRODUCING REUSING RENEWABLE ENERGY page 3

4 SYNAGRO S AWARDS & RECOGNITIONS Throughout our more than quarter century of services to the wastewater industry, Synagro has won numerous awards in partnership with our clients, including: EPA National, 1 st Place; Exemplary Biosolids Management Award with Anne Arundel County, MD EPA Region 4; Beneficial Use of Biosolids Award with Charlotte-Mecklenburg Utility Department, NC EPA Region 5, 1 st Place; Beneficial Use of Biosolids Award with City of Wyoming, MI EPA National, 2 nd Place; Beneficial Use of Biosolids Award with City of Gastonia, NC EPA National, 3 rd Place; Beneficial Use of Biosolids Award with Knoxville, TN Utilities Board GWPCA s Gold Award for Complete & Consistent Permit Compliance GWPCA s Industrial Land Application Award with Anheuser-Busch, Inc. EPA Special Recognition Award for Efforts in Educating the Nation about EPA 503 Rule EPA Award for Public Acceptance Programs WPA Award for Longevity & Contributions to the Field of Sludge & Biosolids Recycling page 4

5 SYNAGRO S FACILITY EXPERIENCE Designed, built and operate more than 60 biosolids dewatering / processing facilities which is more than any other U.S. company. Facility Customers Include: Waterbury, CT (Thermal Processing Facility) New Haven, CT (Thermal Processing Facility) Woonsocket, RI (Thermal Processing Facility) Stamford, CT (Dryer) Baltimore, MD (2 facilities - Dryers) Hagerstown, MD (Dryer) Honolulu, HI (Dryer) Sacramento, CA (Dryer) Pinellas County, FL (Dryer) CCMUA Camden County, NJ (Dryer) Philadelphia, PA (Dryer) South Kern, CA (Compost) Central Valley, CA (Compost) AZ Soils (Compost) page 5

6 Overview of FOG, Biodiesel Offerings FOG to ENERGY 6

7 In CT, restaurants, hotels, hospitals, schools, and other businesses required to install grease traps to remove/reduce the amount of fats, oils and greases (FOG) that enter the sewer lines. New Legislation requires appropriate cleaning and disposal of the FOG (beginning July 2011).

8 FOG NEW HAVEN CT DEP needed a disposal option for haulers in the region. Synagro began FOG receiving in 2000 as pilot program with GNHWPCA. Utilized existing equipment and grant from CWF to set up system. Initial capital cost was relatively small. In 2002, GNHWPCA modified sewer ordinance to charge for FOG discharge and stepped up enforcement. Tip fees were set at $.10/gallon. In 2005, CT issued General Permit for discharge of WW for FPE. Rules took effect July

9 9

10 Use of FOG to Displace Fossil Fuels Fats, oils, greases: a natural by-product of wastewater treatment Obvious opportunity for renewable fuel for biosolids processing on or near WWTPs Heating 16,000 18,000 btu/lb (New Haven tested at 16,600 btu/lb at 95% solids) Can be used as sole source of fuel or blended with other fuels In addition to biosolids industry, FOG is produced in large quantities in food processing and animal processing industries High Strength return flow is a great food source for BNR (Good C, N).

11 FOG NEW HAVEN Currently receiving ~400,000 gallons per month of FOG. Generally same haulers as septic Raw FOG 1-3% concentration Produces about 150K gallons per year of fuel (concentrated FOG). Provides Win-Win-Win Situation! Provides proper outlet for generators and haulers. Provides revenue source for GNHWPCA. Minimizes FOG through sewers and plant! Valuable Renewable Fuel for Synagro Synagro mixes FOG with biosolids for improved burn and reduction of fossil fuel usage Helps achieve renewable fuel goals for Synagro and GNHWPCA. Keeps biosolids processing rates lower for generators. Upgrade planned with funding by GNHWPCA and CWF. Additional capacity Improved odor control 11 11

12 FOG Handling Process Electricity Grease Trap Wastes FUEL CELL Natural Gas WESP CENTRIFUGE DEWATERING Heat Exchanger FOG Fuel Subcant to Influent FOG FRAC TANK MULTIPLE HEARTH FURNACE RTO

13 SYNAGRO: New Haven, Connecticut Synagro owned and operated facility Took over facility in need of significant capital upgrades Includes dewatering and incineration Processes approximately 40 dry tons per day In operation since 1996 page 13

14 FOG Current projects - Waterbury Currently accepting and utilizing concentrated FOG from regional receiving facility in Torrington. Synagro in discussions with City to construct and operate FOG receiving facility. Thermal processing facility can utilize 150,000 gal/year of concentrated FOG

15 SYNAGRO: Waterbury, Connecticut Owned and operated by Synagro Regional facility processing 65 dry tons of biosolids per day Biosolids dewatering and fluid bed incineration In operation since 1996 page 15

16 FOG Current/Future Project Woonsocket, RI Permit modifications made to accept FOG/glycerin. Thermal processing facility can utilize 350,000 gal/year of concentrated FOG. Synagro working with City for installation of system

17 OTHER FOG OPTIONS? BIODIESEL

18 Biodiesel Federal and State mandates are requiring use of biodiesel in heating and transportation fuels. Alternative Fuel Credit of $1/gallon continued renewals??? RINS trading can be significant but fluctuates wildly! Small plants being established that utilize local collection of Yellow Grease as feedstock. Conversion of Yellow Grease simple mature. Conversion of Trap Grease more complex and emerging

19 Biodiesel Process 19 19

20 Synagro BIODIESEL study results Fractured market with many players. Large capital investment required! Tax incentives critical to success and the future of the credits is uncertain. It is difficult to achieve appropriate returns for the investments required to produce biodiesel.

21 SUMMARY: Solution Based Action Energy/revenue options with waste exist. FOG capture/use provides win/win situation: Keeps FOG out of sewers/plants. Provides revenues. Provides outlet to meet state requirements. Keeps biosolids processing costs lower. Additional FOG receiving facilities needed. Opportunities exist for interested WWTP s! page 21

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