Hitachi Zosen Corp. (HZC), Osaka, Japan, is to start its first Kompogas anaerobic digestion project in the U.S. jointly with Hitachi Zosen Inova, its wholly-owned subsidiary that’s an engineering, procurement and construction contractor that specializes in energy from waste (EfW) projects based in Zurich, Switzerland.
The project’s special purpose company (SPC), established by HZ group companies, will construct a Kompogas plant in San Luis Obispo County, California, and will operate the plant generating electricity with compost sale for 20 years.
In order to promote the company’s Kompogas business in the U.S., Hitachi Zosen started the Kompogas SLO LLC for the project SPC through capital contribution of HZC group companies to start the construction, operation and maintenance of the plant. The investment will be recovered by the sale of electricity generated by the gas engine and biogas produced from the plant and the sale of compost as a by-product of the process. For HZC group companies, it is the first Kompogas business, as well as the first waste treatment plant as a design, build, finance, own and operate project (DBFOO), in the U.S.
The plant will handle around 30,000 tons of green waste and source separated municipal organic waste from the county and produce 2,907,000 cubic meters of biogas by Kompogas technology every year. Electricity generated with biogas and gas engine will be sold to a local electric company, which will be supply electricity for up to 600 homes. Compost produced as residue will be sold separately. The plant will be maintained and operated by the HZC group companies for 20 years.
The project in financed through a syndicated bank loan from the Japan Bank for International Cooperation (JBIC) and a private commercial bank. For JBIC, this is the first financing related to a waste processing project.
The U.S. Department of Agriculture (USDA) and Environmental Protection Agency (EPA) are calling for 50 percent reduction of food waste by 2030. In California, the state set a 75 percent reduction goal by 2020.