Construction on organic waste facility in South Surrey could begin in 2024

Artistic rendering of an example of an organic waste facility that produces renewable natural gas and compost. Not the actual design for the facility on the reserve of the Semiahmoo First Nation. (Andion Global)

More details on the Semiahmoo First Nation’s plan to build a regional-size organic waste recycling and processing facility on its reserve in South Surrey have been revealed.

This is a revenue-generating opportunity for the First Nation, jointly owned with Vancouver-based organic waste processing firm Andion Global.

It will have a capacity to process 70,000 tons of organic food waste and yard trimmings on an annual basis — effectively diverting such biodegradable waste from landfills or incinerators, and preventing methane emissions from being released into the atmosphere during the decomposition process.

It will eliminate about 55,000 tons of greenhouse gas emissions annually, equivalent to taking 11,800 cars off the road each year.

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This planned facility is just under half the size of the City of Burnaby’s proposed facility with an annual processing capacity of 150,000 tons, including 50,000 tons for the needs of Burnaby residents, businesses, and municipal operations, and 100,000 tons for the needs of the wider Metro Vancouver region as a revenue-generating opportunity. However, Burnaby’s $182 million project has stalled due to public opposition over the siting at a Fraser River park, with Burnaby City Council directing City staff to go back to the drawing board this past March.

In addition to the revenue generated from the organic waste recycling operations, the Semiahmoo facility will also create supplemental revenue from generating 3.5 million GJ of renewable natural gas for the FortisBC gas distribution network, which is enough to provide the energy needs for over 37,000 homes.

The organic waste byproduct from the renewable natural gas production process will be turned into nutrient-rich compost for sale to local agricultural businesses. This will further help avoid the use of 22,000 tons of chemical fertilizers annually and an avoidance of 26.4 million GJ of fossil fuels in the fertilizer production process.

Location of the Semiahmoo First Nation reserve. (Google Maps)

andion global organic waste facility renewable natural gas

Diagram of how a organic waste facility works, with anaerobic digestion leading to the production of renewable natural gas and compost. (Andion Global)

The Metro Vancouver region currently has limited processing capacity for organic waste, with just two privately owned and operated facilities licensed to accept organics, including GFL Environmental in Delta and Anaconda in South Vancouver.

The planned Semiahmoo facility will be more advanced than the existing GFL and Anacdona facilities, as it is not a composting facility, but instead uses anaerobic digestion to create renewable natural gas from organic waste. With FortisBC’s goal of transitioning to a 75% renewable natural gas supply over the coming decades, there is immense demand through the utility to tap into such facilities.

According to Andion, organic waste in Metro Vancouver accounts for up to 40% of municipal solid waste regionally, but there is less processing capacity in the region than organics that are collected.

The City of Burnaby indicated earlier this year it pays $122.45 per tonne to use the GFL facility, with such high tipping fees and repeated price increases due to the lack of capacity and options in the region.

This week, Vancouver City Council is expected to consider the City of Vancouver staff’s recommendation to approve a $31 million, five-year contract to GFL through 2028 to handle the organic waste processing needs of residents, businesses, and municipal operations in its jurisdiction.

GFL has been a supplier for the City of Vancouver since 2013, initially for a five-year term in a split contract with Harvest Power in Richmond. But Harvest Power suspended its operations in 2016 due to regulation changes requiring the company to improve its odour management, and in 2018 it permanently closed the facility, which significantly reduced overall regional capacity.

Ever since 2016, GFL, previously known as Enviro-Smart Organics, has been the sole supplier for the City of Vancouver. Its contract was renewed for another five-year term in 2018, which now necessitates the municipal government to renew the contract or seek a new supplier.

According to the City of Vancouver staff’s rationale for the contract award, GFL is the only facility that can meet the municipality’s processing needs of 50,000 tonnes per year, as its facility has a capacity of up to 150,000 tonnes annually. Anaconda’s 2017-built facility in South Vancouver can currently handle 12,000 tonnes annually, and it is looking to expand to 30,000 tonnes annually.

But the bidding process that led to City staff’s recommendation to retain GFL saw an unusual number of complaints with Anaconda, Emterra Group, Evergen Infrastructure, Recycling Alternative, and Andion filing complaints.

The City posted a notice on June 16 informing the private sector of its intention to award the contract to GFL for a five-year term. The 14-day process closed on June 30.

The complaints from the five companies included a desire to have an open and fair bidding process, a lack of awareness over the process, technical issues with the City’s website with filing an objection, and the lengthy five-year term that limits opportunities for potential new suppliers.

“We are opposed to the length of the exclusive contract with GFL because it limits our ability to enter the bid, and in our opinion, the City of Vancouver’s economic interests if we are able to make a more competitive offer,” Phillip Abrary, the CEO of Andion, told Daily Hive Urbanized.

If all goes as planned with financing and permitting, Andion’s Semiahmoo facility could begin construction in early 2024 for completion in early 2026. Earlier this summer, the federal government announced $14.4 million in funding for the construction of this facility.

The Semiahmoo facility would be able to handle the City of Vancouver’s 50,000 tonnes annually, plus 20,000 tonnes to spare per year for other customers. An average of 20 trucks daily would be expected to serve the facility at its maximum capacity.

The Semiahmoo facility would have air management systems to ensure there is no odour leakage, with all released air processed through scrubbing and biofiltration systems. There would also be little to no noise, with any noise drowned out by the adjacent Highway 99.

In its complaint, Anaconda says its forthcoming regulatory license approval to expand to a capacity of 30,000 tonnes annually would enable it to handle 60% of the City of Vancouver’s needs, suggesting a multi-entity, split contract.

Evergen stated in its complaint that its facilities outside Metro Vancouver have the capability to turn organic waste into renewable natural gas. It operates the three facilities of Sea to Sky Soils in Pemberton, Pacific Coast Renewables in Abbotsford, and Fraser Valley Biogas in Abbotsford, which have a combined total processing capacity of over 100,000 tonnes annually — more than enough to meet the needs of the City of Vancouver.

City staff states the feasibility of the logistics — extra trucks, equipment, and staffing — needed to support the operations of a supplier located further away is a consideration.

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