The City of Flint and Swedish Biogas International LLC have signed a 21-year agreement that will allow the company to build a biogas plant at the city’s wastewater treatment plant to produce energy from human waste, with the potential to save the city millions of dollars in energy costs over the life of the contract.
In addition, the renewable and sustainable biogas produced by the SBI plant eventually could be used to power automobiles while creating jobs in the local economy, improving energy security and reducing waste sent to landfills. SBI, a subsidiary of the Swedish company Tekniska Verken, will be headquartered on the campus of Kettering University in Flint, which will be the base for the company’s expansion in the North American market.
Acting Mayor Michael K. Brown and SBI CEO Thomas Guise signed operating and development agreements today in a brief ceremony at Flint City Hall. The agreements call for the city and SBI to share the plant energy savings and revenue 50-50, which could amount to substantial returns for the City of Flint within the first seven years of operation. It also includes provisions for both parties to terminate the contract if projected savings are not realized or if a better technology becomes available.
“Today marks the beginning of a new era in the City of Flint,” said Brown. “Since coming into office in February, I have talked about the importance of partnerships and leveraging our assets in moving this city forward. Our agreement with SBI is an excellent example of this approach. Moreover, this project involves an industry that holds tremendous promise for our region and state -- green energy technology.”
Guise called Flint the perfect location for establishing and expanding SBI’s presence in North America.
“Our goal is to create a complete demonstration model of biomethane production, upgrade, distribution and research,” he said. “We have the necessary components here to establish Flint as a Center for Energy Excellence for biomethane.”
Guise added that the production of renewable energy is a local process and provides great potential for jobs and economic growth.
The agreements are the culmination of a partnership between the City of Flint, SBI, the Michigan Economic Development Corp., Kettering University and the Swedish government. The Economic Development Department at the Genesee Regional Chamber of Commerce also provided assistance. The city’s Wastewater Treatment Plant is located in Flint Township and Township Supervisor Karyn Miller has been involved in the project discussions.
SBI is scheduled to begin construction on the biogas plant in August, with completion slated for June 2010. Biogas production would begin in the third quarter of 2010.
The biogas would be to generate electricity for sale to the local electrical grid. Phase two would entail upgrading the biogas to be used as a vehicle fuel.
Meanwhile, through research funded by the U.S. Department of Energy, Kettering University will work to improve the digestion process that converts human waste to biogas and modify vehicles to run on biomethane.
"We at Kettering University are delighted to partner in the Flint Center of Energy Excellence and to contribute to the economic and social well being of the city and the region,” said Michael Harris, Provost and Vice President for Academic Affairs at Kettering. “We are committed to advance applied knowledge as it relates to cutting-edge renewable energy and alternative-energy technology."
MEDC President and CEO Greg Main said the partnership is a big step for Michigan in leading the development of new energy and transportation technologies.
"The City of Flint is charting a bright, green future for itself," Main said. "The exciting new technologies taking hold here are poised to create new jobs and help Michigan become the state that ends our nation's dependence on foreign oil."
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