Rialto Bioenergy Enters Chapter 11

by Bob Gaetjens (Waste Today) ... As a result of a lack of feedstock available to the facility, RBF has been unable to produce sufficient revenue to cover its costs and debt service. Anaergia says the feedstock shortfall is due to a delay in the implementation and enforcement of laws requiring organic waste diversion from landfills by the city of Los Angeles as required under its contracts with private waste management companies, as well under California’s SB 1383. The company says feedstock ramp-up is slow industry-wide.

Anaergia says Los Angeles is operating under a corrective action plan stemming from its delayed efforts to adopt and enforce the law’s waste diversion requirements. SB 1383’s implementation was previously delayed because of the effects of the pandemic. Los Angeles adopted an implementation ordinance in late 2022, which is fully enforceable in January 2024, according to the company.

Anaergia Spokesperson Melissa Bailey says the company is not sure exactly when Rialto will exit restructuring, but it’s tied to feedstock.

“This is directly related to the rate of the roll-out of organics collection by commercial and multi-family generators in Los Angeles, and the faster LA will get compliant, the faster we can be operating in full as was planned by us and the state for the facility,” she says.

Recycling Today Media Group has reached out to the city of Los Angeles and CalRecycle for comment.

The League of California Cities sent a letter to the state legislature and Gov. Gavin Newsome to "honor the $345 million allocated for organic waste recycling grants in recent state budgets."

The organization representing California cities says the bill cannot implemented without state support, adding that the California Department of Recycling and Recovery (CalRecycle) has estimated putting SB 1383 into action could cost local governments up to $20 billion over the 10 years.

Anaergia Chief Operating Officer Yanic Scherson, who also serves on the RBF board and as a vice president of the subsidiary, says the facility is needed by the state to help SB 1383 succeed. READ MORE

Excerpt from Anaergia/Business Wire: Anaergia Inc. (“Anaergia”, the “Company”, “we”, “us”, or “our”) (TSX: ANRG) announced today (November 15, 2024) that its subsidiary, Anaergia Services LLC (“Anaergia Services”), has entered into a long-term Operations and Maintenance (“O&M”) contract with Rialto Bioenergy Solutions LLC (“RBS”), an affiliate of Sevana Bioenergy LLC. The RBS facility (“Facility”) is the largest landfill diverted organic waste-to-renewable natural gas facility in North America.

Under the terms of the contract, Anaergia Services expects to operate the Facility for the next 10 years.

The Facility is designed to convert up to 1,000 tons per day of municipal wastewater biosolids and landfill-diverted, organic waste into up to 985,000 MMBtu per year of renewable natural gas (“RNG”) and fertilizer. The Facility processes organic waste that was extracted from mixed municipal solid waste using Anaergia’s proprietary OREX™ technology and produces RNG with large-scale, advanced anaerobic digester technology. The Facility supports California’s landfill diversion regulation Senate Bill 1383 aimed at reducing greenhouse gas methane emissions from landfills.

“The RBS is a critical asset serving the organic waste diversion needs of Los Angeles’ RecycLA franchise and the broader Southern California region. We are making capital and operational improvements to ensure we provide a reliable organics processing solution,” said Steve Compton, President of Sevana Bioenergy.

“We are pleased and proud to be entrusted in operating the RBS facility, that is playing a critical role in organic waste recycling in the heart of California,” said Assaf Onn, CEO of Anaergia.

Founded in 2017, Sevana Bioenergy is a Boise, Idaho-based company with a proven track record of developing and upgrading large-scale biogas projects. The company utilizes state-of-the-art technology and engineering practices to transform organic waste into clean Renewable Natural Gas (RNG). Sevana has assembled a senior management team with a great depth of experience in the development and management of organic waste bioenergy facilities, both in Europe and the U.S. Sevana Bioenergy is committed to reducing greenhouse gas (GHG) emissions and fostering a sustainable future through the production of RNG for transportation fuel, electricity generation, and other clean energy applications.

Anaergia was created to eliminate a major source of greenhouse gases (“GHGs”) by cost-effectively turning organic waste into RNG, fertilizer and water through the use of proprietary technologies. With a track record of delivering innovative projects, Anaergia is uniquely positioned to provide solutions to today’s most pressing resource recovery challenges using a broad portfolio of proven technologies and multiple project delivery methods. Anaergia is one of the world’s only companies with a proprietary portfolio of end-to-end solutions that integrate solid waste processing as well as wastewater treatment with organics recovery, high efficiency anaerobic digestion, RNG production, and recovery of fertilizer and water from organic residuals. The combination of these technologies enhances carbon-negative biogas, clean water and natural fertilizer production, utilizes a minimized footprint and lowers waste and wastewater treatment costs and GHG emissions.