Grimsby's distinction of having a biodigester is concluded. Its difficult operations and financial losses have also come to a conclusion - the facility has been sold.
It is a story of mis-steps, poor steps, set-backs, failure to carry out the needed activities, and more. It took seven years to get it up and running mid-December 2016. The hope wasannual revenue from power generated ito be $1.4 million. It was to pay for itself in eight years. Here's a sample quote:
"I would hope to see several hundred thousand (dollars) going back to the town" on an annual basis, he said. "This project should double the revenue stream coming to the town from hydro assets."
Fast forward to 2018 municipal elections, and a new town council and mayor swept into power. They made the biodigester the main subject. The past mayor and town council had refused to reveal the costs of the biodigestor. The debt in January 2019 was determined to be $15 million. It costs $100,000 a month to operate it.
It isn't surprising that there is a lawsuit against the three major players, and that includes the past mayor. The lawsuit claims that the two players, with the mayor's support, appointed themselves as contractors and project managers and received substantial money while serving as company directors. It also claims they suppressed information that the project was not producing profit, along with the losses from the biodigester. There was irregular accounting practices and missing information as well.
The resolution of the biodigester was difficult but it got accomplished. Grimsby is a little town - almost 30,000. It can look forward to a being town focused on town services again. And the new owner, White Owl, is in the waste diversion and processing facility business, so can expect to see a profitable operation.
These Sago Palm leaves were beside yesterday's pool in Sacramento.
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