Title
Nutrient Harvesting Fertilizer Sale
Action
Action:
A. Approve a contract with Ostara, Inc. for the sale of fertilizer from the Nutrient Harvesting Facility at the McAlpine Creek Water Resource Recovery Facility project for a term of three years, and
B. Authorize the City Manager to renew the contract for additional three-year terms and to amend the contract consistent with the purpose for which the contract was approved.
Body
Staff Resource(s):
Angela Charles, Charlotte Water
Ron Hargrove, Charlotte Water
Thomas Powers, City Attorney’s Office
Explanation
§ The wastewater treatment process creates a by-product of water containing phosphorous. Specialized equipment is needed to purify the water and remove phosphorus and other impurities.
§ Charlotte Water is building a Nutrient Harvesting facility at its McAlpine Creek Water Resource Recovery Facility that is capable of purifying the water and creating a marketable fertilizer from the wastewater by-product.
§ Charlotte Water is licensing propriety Ostara technology and has purchased the Ostara equipment to produce the fertilizer. Ostara was selected by the Design-Build team because it was the only technology and equipment provider available at the time of the Request For Qualifications (RFQ) in 2021.
§ Under this contract, Ostara will purchase the marketable fertilizer from Charlotte Water that was produced using Ostara’s propriety equipment and technology.
§ Annual revenues from the sale of the fertilizer are estimated to be $500,000. Additionally, the production of fertilizer is estimated to save Charlotte Water $2,000,000 annually in chemical expenses.
§ This project also supports the city’s Strategic Energy Action Plan by helping to create a circular economy and reduce waste.
Background
§ On March 2, 2021, the city issued an RFQ; four responses were received. MEB General Contractors, Inc. was the best qualified firm to meet the city’s needs on the basis of demonstrated competence and qualifications of professional services in response to the RFQ requirements.
§ On October 11, 2021, City Council approved a $2 million contract with MEB General Contractors, Inc. for Design-Build design services for the Nutrient Harvesting facility.
§ On April 28, 2025, City Council approved a $30 million contract with MEB General Contractors, Inc. for Design-Build construction services for the Nutrient Harvesting facility.
§ The project is anticipated to be complete by the third quarter of 2027.
Charlotte Business INClusion
Contract goals were not established for this contract because the scope of work or goods does not present viable subcontracting opportunities. Ostara, Inc. will be responsible 100% of the work or goods, and there are no opportunities to include subcontractors. This assessment was confirmed by CBI and the respective department after reviewing the project’s scope and potential for division into subcontracting opportunities.
Fiscal Note
Funding: Revenues will be deposited into the Charlotte Water Operating Fund