Project Update: Local Energy Company Becomes Latest Stumbling Block for Dynamis

Entering Hidden Hollow County's
Sanitary Landfill. Courtesy:
Ada County.

 Hidden Hollow Energy is the latest group in a string that includes citizens and some country officials to try to stop the construction of a $70 million waste-to-energy plant in Ada County, Idaho.

The alternative energy company captures methane gas from decomposing trash at the Hidden Hollow landfill to generate 3.2 MW of power, which it then sells to Idaho Power. Hidden Hollow Energy LLC and Hidden Hollow Energy 2 LLC filed a $30 million claim on Tuesday, July 24^th, accusing Ada County officials of breach of contract.

Hidden Hollow Energy says that the county’s contract with Dynamis to provide 408 tons of trash per day that would otherwise go to the landfill undercuts promises Ada County made to them. The local company has been in operation since 2006 at the landfill and could lose approximately one-third of its daily landfill stream if the Dynamis project is completed.

While Hidden Hollow Energy 2’s motivation for action is likely a financial one since the company is currently trying to expand its operations by building on the existing pipeline structure, what concerns us is that some citizens back landfilling over a waste-to-energy project because only one side of the story has been told.

We have always supported transparency from companies in terms of technology and emissions and have repeatedly called on Dynamis to be more proactive in educating the public. But the fact remains that the alternative to a waste-to-energy project is far more damaging.

North Ravine Landfill at Hidden Hollow County Landfill.
Courtesy: Ada County.

Waste-to-energy projects heat up the trash at very high temperatures, which turns it into ash. The concern comes from the dioxins it creates in the process, which were a problem in the early days of the technology and could be toxic if ingested. However, advancements in technology mean that today’s plants have advanced emissions control systems, which are capable of delivering a very clean solution. The trace amounts of dioxins it emits can be regulated and closely monitored.

Landfilling, by contrast, leaks methane and other greenhouses as it decomposes. The EPA estimates that the best landfill gas collection systems collect only 75% of the gas and most systems hover between 47-50%. Additionally it reports that burning landfill gas for energy releases 20-40% more greenhouse gas pollution than flaring.

In fact, in June 2011 it came to Idaho DEQ’s attention that “certain contaminant levels had increased to a level such that Ada County was no longer in compliance with its existing air quality permit.” Ada County, Idaho DEQ and Hidden Hollow Energy have worked to find a solution but have not been successful. Idaho Power severed its power purchase agreement with Hidden Hollow Energy as a result of the company failing to meet its operation deadline of Feb. 28, 2012.

Both Dynamis and Hidden Hollow Energy have applied for air permits from the Idaho DEQ. Dynamis will have a three-month wait followed by a time of public comment. Ada County has 90 days to answer Hidden Hollow Energy’s tort claim before a civil lawsuit can be filed. While we have not seen the agreement between Hidden Hollow Energy and Ada County, it would be highly unlikely that the county would have entered into an agreement with Dynamis to provide trash it knew it couldn’t deliver.

Let the circus continue.

Energy Company Files Claim Against Ada County – CNBC (July 26, 2012)

Dynamis Faces Long Process – By Sean Olson, Idaho Business Review (July 27, 2012)

20120713 Formal Complaint – Hidden Hollow Energy 2 LLC vs. Idaho Power Company (July 13, 2012)

Fact Sheet: Landfill Gas – Energy Justice.net 

Project Update: Turning Up the Heat in Ada County

Problems continue to arise for Dynamis Energy as its efforts to push forward with plans for a $70 million gasification facility on the site of the Ada County landfill near Boise, Idaho begin to look more like a daytime drama than a serious discussion.

A newly-formed organization called the Idaho Citizens for a Safe Environment and a Transparent Government sent a formal letter on Monday to Dynamis listing 20 questions it would like to have addressed in the presentation to the Hidden Springs Town Association on June 21^st. Drafted by the Law Office of Andrew T. Schoppe, the questions cover the gamut of issues ranging from the RFP timeline to traffic patterns and intellectual property rights.

Local government officials debate over Dynamis Energy's
proposed project. (KSAW-TV). 

While many of the questions are valid, the tactic of peppering an opponent with questions to put him on the defensive is one taken straight from the pages of the Sierra Club playbook. The lengthy list of questions, some of which have already been answered by Commissioner Sharon Ullman, creates perceptional damage and steals focus away from the main issues.

This effective strategy puts Dynamis between a rock and a hard place. Opponents ask for confidential data knowing it won’t be released but hoping it will make the company look as if its hiding something. The waste-to-energy company hasn’t been the only victim of these attacks: outgoing Commissioner Ullman lost last month’s election amid accusations that resulted because of her support of the project.

But before you pull out the Kleenex for Dynamis, realize that the company has brought some of this on itself. While most projects that use the first commercial installation of a technology face opposition from activists, Dynamis’s disregard for the thoughts and feelings of the surrounding community make it an easy target.  Little has been done by the company to educate the general population on the project and the technology, giving its opponents a chance to swoop in with altered facts and misinformation. Top executives have had brusque encounters with the community at public hearings, almost inviting people to vilify them.

While Dynamis is correct that it’s the government officials and environmental agencies like the DEQ that will ultimately decide if the project moves forward, its attitude could prove to be its Achilles Heel. We remind you of the project at the University of Montana (see A Tale of Two Cities) and offer the story as a warning to Dynamis of how effective a mob of angry citizens can be.

BETTER BTU: Both sides have behaved so badly we’d like to send them back to kindergarten for a refresher on playing nice. Dynamis better get its act together and make an effort to get the people of Ada County on board. On the other hand, we can’t help but notice the irony of an organization that uses the phrase “transparent government” in its title and creates smoke and mirrors itself to detract from the key issues. 

Further Reading:

Comissioner Sharon Ullman answers some of the questions that were directed to Dynamis in her blog entry, dated Apr. 30: Sharon Ullman's Blog

Idaho DEQ Resumes Review of Permit for Dynamis – Idaho Statesman, June 14, 2012

Other Better BTU Blog Posts on Dynamis: 
Project Update: Local Energy Company Becomes Latest Stumbling Block for Dynamis (July 31, 2012)
Better BTU Project Update: Dynamis Energy (May 14, 2012)
Dynamis Energy:Oh the Places You'll Go (Mar. 29, 2012)

Better BTU Project Update: Dynamis Energy

No one ever said that breaking into the renewable energy industry was easy and Dynamis Energy has faced obstacles on several fronts in the last month.

We first reported on the Eagle, Idaho company in a Mar. 29, 2012 entry entitled Dynamis Energy: Oh The Places You'll Go. We discussed the company’s strategy of partnering with local firms on several continents to find projects. We examined projects in the various stages of proposal in the U.S., Puerto Rico, Italy and South America.

Politics have been heating up in Ada County, Idaho as the proposed project at the county-owned Hidden Hollow landfill moves closer to construction. Ada County agreed to lease the land to Dynamis in 2010 for $1/year for 20 years in return for the company building and operating a gasification facility that would generate 20 MW of electricity. Idaho Power has signed a purchase power agreement.

Residents of Hidden Springs listen to Dynamis Energy at
the public forum on Apr. 26. Courtesy: Idaho Statesman.

Dynamis filed for an air permit on Apr. 25^th to the Idaho Department of Environmental Quality. The DEQ has 90 days to respond, but as several of us in the industry know, that timeline can be stretched since the clock doesn’t start until the DEQ deems the application “complete.”

In the meantime, public forums have been held at Hidden Springs (Apr. 26) and Rivergien Junior High (May 3) where several critics have voiced outrage at the county’s $2 million investment in the project. Ada County paid the fee for project designs in effort to jumpstart the project. County Commissioner Sharon Ullman defends the decision by explaining that Dynamis will not be granted a building permit until it has repaid the money. She assures skeptics that there are other provisions in place in case the project falls through.

But the controversy of the project has become a central issue in the primary race for two commissioner seats. Of the five candidates running, two are opposed to the project and a change in government leadership could spell trouble for Dynamis. Additionally, the company is in a race against the clock as it must by operating by Dec. 31, 2013 in order to qualify for a federal grant that will cover up to 30% of the cost. The facility must be supplying power by Feb. 14, 2014 in order to satisfy the agreement with Idaho Power. Dynamis CEO C. Lloyd Mahaffey says that the plant will take 15 months to build and construction will start in July.

To complicate matters, several Dynamis executives have had personal financial and legal problems hit the press in the last month. The Idaho Statesman reported that Mahaffey and Senior Vice President of Corporate Development John A. Johnston owe almost $400,000 in back property taxes for 124 parcels of land in their Eagle Springs/Southfork Landing development located in Garden Valley. The pair have until July 23^rd to resolve the issue. Meanwhile, Senior Vice President of Legal and Finance Wade Devin Thomas currently has a federal tax lien of $318,370.10 that was filed in January 2011 for four years of IRS assessments. Additionally, he has a $5,679.99 state tax lien for unpaid 2009 taxes that was filed in Nov. 2010.

The most recent blow to Dynamis came last Thursday when Judy Shelton of Synergy Renewables announced that the company had legally dissolved its cooperative agreement with Dynamis last month. Dynamis had signed the agreement with Synergy and Primoris Renewables to build two waste-to-energy facilities in Puerto Rico. Primoris CFO Peter J. Moerbeek confirmed that the agreement had been dissolved but no one has offered an explanation why.

BETTER BTU TAKE: If you can’t take the heat, get out of the gasification industry. The company appears to still be on track for its facility in Ada County despite obvious concerns by citizens. It’s pretty unusual to see a municipality invest in a technology and its received lots of criticism by some residents for it. Based on the website and reported conversations from Idaho Statesman writer Cynthia Sewell, the company isn’t concerned with its public image and that may be a mistake. Executives obviously haven’t made friends with the reporter and depending on the outcome of the election, things could only get harder. Thomas is right when he says that his personal financial welfare doesn’t affect the company, but it doesn’t look great when three of your top executives owe the government large sums of back taxes…especially when you are trying to convince financers to write large checks. We’ll be interested to see how things progress.

For More Information:

Hidden Springs Residents Want to Know More About Waste-to-Energy Plant, The Idaho Statesman, 4/19/2012

County Candidates, Critics Take On Ada County Garbage-to-Gas Plan, The Idaho Statesman, 5/3/2012

Eagle Company No Longer Part of Puerto Rico Waste-to-Energy Project, The Idaho Statesman, 5/12/2012

Other Better BTU Blog Posts on Dynamis: 

Project Update: Local Energy Company Becomes Latest Stumbling Block for Dynamis (July 31, 2012)

Project Update: Turning Up the Heat in Ada County (June 21, 2012)

Dynamis Energy:Oh the Places You'll Go (Mar. 29, 2012)

Dynamis Energy: Oh The Places You’ll Go

For most companies, securing the first commercial contract can be a long and tedious process. It can take years to refine the technology, find a way to lower production costs and find the right client. While Dynamis Energy hasn’t yet crossed the finish line with a completed commercial project, its making moves on several continents.

Dynamis Energy is the creator of the 3.0 Waste-to-Energy Technology, a waste-to-energy system that is similar in some regards to the TOS Plant that has been operating in Barrow, Alaska since 1996. The Eagle, Idaho company’s simple design makes it easy to operate and relatively low-cost; something investors can get on board with.

In the last two years, Dynamis has announced plans to build several facilities on three different continents. The first, and most promising, projects began in its home state of Idaho. Hired by Ada County in June 2010, Dynamis signed on to build a facility at the Hidden Hollow Landfill in Boise. The company will lease the landfill for $1/year for 20 years and build a facility that will process 250 tons of solid waste per day in exchange. On Feb. 24, the Idaho Public Utilities Commission announced that it had approved the rate contract and that Idaho Power will sign a 20-year sales agreement. Operation is currently set to begin on Feb. 14, 2014.

Dynamis Energy's 3.0 Waste-to-Energy Technology

Eight months later, Clark County followed suit. After establishing the Eastern Idaho Regional Solid Waste District and completing a feasibility study, the county hired Dynamis to build 120,000 ton per year facility that will generate 13.5 MW of electricity. Rocky Mountain Power will purchase the power from Dynamis. The plant will be built in the Centennial Energy Park located East of Dubois. Construction will begin this summer and hopes to be finished within 15 months.

In February, Dynamis received good news on a project it has in the words in Puerto Rico. Dallas-based contractors Primoris Renewables announced it signed a $40 million contract to build two waste-to-energy facilties, working alongside Synergy Renewables and Dynamis. The plants will each process 180,000 tons annually to produce 10 MW of power.

In June 2011, the Idaho company announced it had entered a joint venture with All Way for the construction and management of a facility that will be integrated with an existing waste management plant in Lombardo, Italy. Permits have already been secured and construction was scheduled to start in late 2011, although we haven’t been able to find confirmation that it has started. The facility is currently scheduled to go online in fall 2012.

As if it wasn’t busy enough, Dynamis Energy announced in October 2011 that it was partnering with Planova, a Sao Paulo-based development firm, to pursue opportunities in South America. The pair will focus primarily on possibilities in Argentina, Brazil and Peru.

Better BTU Take: This company is on the move! We love that Dynamis is partnering with local firms to tap into foreign markets. It should keep the small company from becoming overextended. The question will be how many of these projects come to fruition – the announcement to completion ratio isn’t favorable and the more public projects that fail to cross the finish line, the harder it is for our industry to convince others of its legitimacy. Still, the projects seem headed in the right direction and the one in Boise has sparked interest for other counties in Idaho and Wyoming. This is a difficult company to keep up with due to the fact that their website is tragically out of date, but we’ll do our best to bring you the updates here!

Idaho Public Utilities Commission Press Release (Feb. 24, 2012) - PUC Approves Idaho Power Contract with Landfill Waste-to-Energy Project

Waste Management World (Feb. 1, 2012) - $40 Million Waste to Energy Gasificaation Contract for Dallas Firm

Dynamis Press Release (Nov. 11, 2011) - Dynamis Energy and Planova Sign Agreement to Construct Waste-to-Energy Plants in Brazil

Dynamis Press Release (June 9, 2011) - Dynamis Energy and All Way Sign Agreement to Construct Waste-to-Energy Plant in Lombardy, Italy

Waste Management World (Feb. 18, 2011) - 120,000 Ton Waste to Energy Gasification Facility Planned in Eastern Idaho

Other Better BTU Blog Posts on Dynamis: 

Project Update: Local Energy Company Becomes Latest Stumbling Block for Dynamis (July 31, 2012)

Project Update: Turning Up the Heat in Ada County (June 21, 2012)

Better BTU Project Update: Dynamis Energy (May 14, 2012)