Collaborating with a new operation to better handle needs in the area, the South Davis Sewer District has entered a public-private partnership with Opal Fuels.

“I am really impressed with Opal,” said Matt Myers, general manager of the South Davis Sewer District. “They’re sharp, they’re confident they know what they’re doing and that’s one of the big reasons that we went with them was that they clearly impressed us on a lot of different fronts.”

Opal Fuels – who describes themselves as “a fully integrated, nationwide leader” in the renewable gas sector – signed an agreement in March that gave them a controlling interest over food waste management projects. The shares purchased were from a former partner of the district, who was looking to sell.

According to Myers, though Opal Fuels has engaged in multiple endeavors such as generating renewable natural gas from manure anaerobic digesters, this collaboration will mark their first food waste aerobic digester project. The district is eager to see how the organization’s focus on renewable natural gas will benefit overall operations. 

“We are totally happy to have them come and take that operating decision-making burden off of the district,” said Myers. “Now we can just focus back on what we do really well, which is provide excellent public service in the sewer collection and treatment space.”

Part of Opal Fuel’s strategy involves trading on the natural gas markets – maximizing on what they yield from each project. Opening selling opportunities for the organization and sewer district, the partnership could lead to Davis County becoming an established generator of renewable fuel.

Though they enter the partnership with a controlling interest, Opal Fuel’s agreement allows them to earn additional shares for high performance, potentially turning the sewer district into a minority owner of the food waste management project.

“Even if our shares reduce overtime, we’re still in a great position because that will mean that they are succeeding very well and we are getting another revenue stream that we didn’t initially rely on,” said Myers.

According to Myers, South Davis Sewer District first began work on food waste management projects between 2016 and 2017 during the tenure of the former district manager and board of trustees. The previous partner, a local operation and subsidiary of a larger organization, decided two years ago to sell their share of the 50-50 partnership they’d agreed to.

Though the previous partner had control over who and how their shares would be sold, the signer had to be approved by the sewer district.

In addition to upgrading food waste management operations within the area, South Davis Sewer District is currently overseeing construction on a 12.66-acre property they purchased in May of last year. Their goal is to future-proof their capabilities and ensure they can stay ahead of their facility’s aging.