Synagro awarded $4.5 million manure-to-energy digester contract

Inland Empire Utilities Agency awarded to Synagro a $4.5 million contract to design and build an anaerobic digester pilot facility that will process the daily manure generated by approximately 3,750 dairy cows.

HOUSTON, Aug. 10, 2001 — Synagro Technologies Inc., an independent, full service provider of residuals management services, announced today that the Inland Empire Utilities Agency (IEUA), a wastewater treatment and wholesale water agency serving over 700,000 people in San Bernardino County in Southern California, awarded to Synagro a $4.5 million contract to design and build an anaerobic digester pilot facility that will process the daily manure generated by approximately 3,750 dairy cows.

IEUA will use a portion of the biogas (methane) produced from the digester as supplementary fuel to run two generators powering the Chino Basin Desalter Facility. The remaining methane gas will be used to run four Capstone microturbines for the demonstration of electricity generation on site.

Synagro has contracted with AnAerobics Wastewater Treatment Company Inc. ("AnAerobics"), an emerging waste stream technology and services company based in Aurora, N.Y., to provide the anaerobic digestion technology for the project and Tilden-Coil Constructors Inc., a prominent Southern California general contractor, to provide construction services. AnAerobics generates renewable fuel through its delivery of cost-effective waste treatment solutions using proprietary technologies and a complete management system.

The company has successfully applied its unique approach to waste treatment in a wide range of market sectors, including the food and beverage industry, municipal waste and livestock waste. Ed Heslop, AnAerobics' president and COO, stated, "We are thrilled by the opportunity to expand the application of our technology to the California livestock market, where the need for both clean water and useable energy is particularly acute. We firmly believe that this project, and others like it, will revolutionize the manure management industry."

According to Richard Atwater, IEUA's general manager, "IEUA is excited to be working with Synagro and AnAerobics on this project that will convert methane gas from the region's dairy manure into new, clean, renewable electricity. These two nationally recognized companies will combine their noteworthy capabilities to provide revolutionary solutions to the manure management issues facing our region."

Continuing, Atwater stated, "IEUA is at the forefront of testing processes and technologies that provide a clean, renewable source of energy using manure generated daily at local dairies. We are pleased to move forward with these projects that have attracted over $15 million in State and Federal grant funding."

According to Traci Stewart, chief of Watermaster Services for the Chino Basin, "The generation of energy using the methane gas produced from dairy manure will help make the region's water supply more reliable in the future by providing electricity to the Chino Basin Desalters."

Robert Feenstra, executive director of the Milk Producers Council, noted, "Milk Producers Council is in full support of the IEUA/Synagro/AnAerobics dairy manure digester project. Innovative technologies, such as the digestion of dairy manure, are essential if the dairy community is to continue to operate in an environmentally sound manner."

Synagro's Chief Executive Officer Ross M. Patten stated, "We are very excited to be part of this important project. This project will demonstrate the enormous opportunities that exist in the area of manure management. Not only will we be able to better protect the air quality and groundwater in the region, we will also demonstrate how AnAerobics' technology can cost effectively convert methane gas into a clean, renewable energy source. Through a marketing arrangement with AnAerobics, we look forward to marketing the AnAerobics technology to other livestock manure generators."

According to Paul Sellew, executive vice president and leader of Synagro's newly formed Agribusiness Group, "This facility will serve as a demonstration of Synagro's package of technology and services for the livestock industry in the United States."

Synagro is focused on organic residuals management services, and has operations located throughout the country. In addition to pursuing acquisitions in key markets, the company is positioning itself as the national provider of biosolids services to municipalities and wastewater privatization projects throughout North America.

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