Do You Have a Sales Strategy to Target Biosolids Projects?
Wastewater residuals are the unsung heroes of economic and environmental initiatives across the United States and beyond. When processed right, the organic material from sewage treatment plants can be used as fertilizer and can even provide heat or electricity by capturing produced methane. Resource recovery of wastewater biosolids saves cities money, improves efficiency and reduces waste. Municipalities all over the country are investing millions of dollars into new residual infrastructure, driven by a number of different motivators.
For biosolids industry leaders to understand what motivates municipalities decisions leading up to the RFP stage, we can examine the path from issues and needs to infrastructure upgrades. By constructing a timeline of the typical steps leading to these decisions, we can begin to answer some of the biosolids industry leaders’ most burning questions, including:
• What leads a utility to choose alternative biosolids technology?
• When do these indicators typically surface?
• How can biosolids industry leaders locate these opportunities earlier?
Through investigating these questions, we have identified 4 major indicators:
1. Green Initiatives
With the right infrastructure, sewage can be transformed into fertilizer that can be used in everything from agricultural practices to mine reclamation to reforestation. Facilities also have the power to turn waste into fuel with help from biogas-generating microorganisms, that can be captured to produce heat and electricity.
Due to these benefits, cities that are seeking to become more environmentally friendly have demonstrated an interest in alternative biosolids processioning. In 2017, for example, the City of Palo Alto initiated work on an infrastructure upgrade that would remove it from a list of only two cities in California still burning their sludge. (Biosolids processing is just one of the ways cities are going green. See WatrHub’s recent spotlight on emerging Smart City infrastructure initiatives for more green initiatives.)
The time between discussions on green initiatives and infrastructure changes varies widely, but they commonly reveal themselves in capital improvement plans and long term budgets that typically outline the upcoming 5 years. Palo Alto has been planning its biosolids infrastructure upgrade since 2011. Significant expenditures for infrastructure upgrades generally require years of detailed planning, so this is the first step of our timeline.
2. Changing Biosolids Regulation
Municipalities are getting a significant legal push for advanced biosolids projects too. In 1993, the Environmental Protection Agency introduced standards for the use or disposal of sewage sludge nationwide. Further, state regulations can cumulatively influence utilities, with many states writing their own regulations on Class A and Class B biosolid use. In January, Cartersville, Georgia felt the sting of new regulations with their new wastewater discharge permit. New guidelines mandate that they change their biosolids treatment plan, upgrading their aeration equipment and tackling other nutrient removal measures totaling $37 million dollars.
This is the second step on our timeline because generally, regulatory agencies give utilities ample time to get in compliance. The 1993 EPA Biosolids Rule, for example, gave utilities two years to get into full compliance with the new rules. Cartersville will be given 3 years to complete construction and get their wastewater plant up to the new state standards.
Federal and state pressure will continue to affect all states as laws evolve with technology and education, and it is critical for municipalities and infrastructure companies to understand the changing regulatory atmosphere of a potential project.
3. Increasing Sludge Handling Costs
Between sludge hauling contracts and storage fees, dealing with biosolids can get expensive and complicated. Costs for transporting and storing residuals tend to climb over time, and the bottom line is an enticing long-term motivator for municipalities. Ukiah, California’s most recent budget shows initiative for a recycled water system as a result of rising sludge disposal costs. The cost-savings from disposal fees combined with the revenue potential of selling fertilizer and producing biogas create a compelling incentive for utilities. As one operator in Ithica, New York put it during biogas upgrades in 2014, “it’s about investing money to save money”. A high initial capital cost for biosolids infrastructure yields to future operational savings.
This indicator comes with a higher sense of urgency than environmental or regulatory changes, but infrastructure changes may still come a couple of years after initial conversations about rising sludge handling costs, especially if a municipality is in a long term contract for sludge hauling.
4. Failing Treatment Equipment
Equipment that has broken down or reached the end of its useful life pushes utilities to upgrade their biosolids infrastructure. RFPs can pop up with little warning, with just months or even weeks to prepare, but there are clues that help hint at a utility’s plan to upgrade earlier. Rome, New York made plans to expand aerobic digestion as part of an upgrade to their aging facility in August of 2018. But back in June of 2017, the City hired CDM Smith to evaluate solids options, an indication that they are serious about taking action.
This driver can be more urgent than the first three indicators, especially if a plant relies on the failing equipment for day to day operations. It is important to note that critical infrastructure purchases may bypass traditional budget planning and be supported by contingency funds, making them a much faster process. Most upgrades, however, come with ample warning, especially if the right indicators are being searched. (By monitoring the consultant activity of a utility considering biosolids, Rome revealed intentions to change their infrastructure in meeting minutes over a year before pre-design plans.)
There’s no one dominant reason municipalities get involved with new biosolids initiatives, and companies must tailor their strategies accordingly. Finding indicators for these projects isn’t a static endeavor. Evolving technology, costs, regulations and public opinion will all continue to affect the future of residuals processing.
If you are a biosolids industry leader and would like to learn more about how WatrHub can help you identify utilities that exhibit these indicators, email Karen Sabich to learn what insights we can uncover for you.
