With an upgrade project estimated at $3.5 million in the works, Nanaimo Organic Waste is seeking to extend a waste processing deal with Regional District of Nanaimo for 20 years.
Nanaimo Organic Waste accepts organic food waste from the regional district and a variety of commercial haulers at its Maughan Road facility and according to Dave Hammond, Nanaimo Organic Waste co-owner, its current technology is outdated.
The upgrades would see the facility convert current rotary drum composting to tunnel technology and replace a bio-filter. Hammond said the aim is to produce higher-quality compost, reduce on-site and off-site odours, and increase capacity for future requirements.
The plant upgrade project is subject to the approval of the contract extension, Hammond said.
“In order to afford that, we need a longer-term contract to be able to amortize the costs and so that’s the whole point, is looking to do a 20-year contract,” said Hammond.
The regional district board directed staff to work on the deal and report back with terms. Larry Gardner, regional district manager of solid waste services, doesn’t have a timeline for when it will be complete.
“I do believe the proponents are motivated, so it’s something we’ll be acting on right away,” said Gardner.
Hammond said the technology can be adapted to create biofuels and produce electricity for the grid, however, there would need to be significantly more volume to amortize the additional capital cost.
The board has also set aside $50,000 from the 2017 solid waste services budget for legal, financial and other matters related to completion of the deal.