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 qualifica...
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