Beaumont, Texas - The City Council today moved forward with a plan to turn over a portion of the city's solid waste to a private company for conversion to commercial grade liquid diesel fuel.
Under the terms of the contract, the city will divert an average 1,400 tons of solid waste per week from the City's landfill to a facility owned and operated by Fair Energy Operations-Beaumont, LLC. The conversion facility will be built, owned and operated by the company. It will be located on land owned by the company and adjacent to the landfill.
In exchange for the solid waste, FEO will pay the city $400,000 per year, paid in two installments. The agreement is expected to increase the life of the landfill by five years. Payments to the city will increase by three percent each year starting on the fourth anniversary of the contract.
As part of the process, materials including paper, plastics and metals will be separated and recycled. The remaining waste will be converted to fuel. The company estimates it will spend $30 million on the land and facility, and projects it will create 50 permanent jobs.
"Moving forward with this agreement will make Beaumont the first City in Texas to engage in such an operation. The project will benefit the citizens by generating revenue, extending the life of the landfill, starting a bulk recycling program, and implementing green technologies," said Hani Tohme, Director of Water Utilities and Solid Waste.
Tohme said the landfill takes in about 700 tons of solid waste per day. Neither the city nor FEO are able to project when the new facility will be in operation.