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HomeMy WebLinkAbout0459 (9 EarthRenew, Power to Renew the Earth EarthRenew Soil Amendment Organic Matter FertilizerTM Product Use at the i Pleasant Harbor Resort & Golf Course Don Dabbs EarthRenew Corporation July 7, 2010 C • EarthRenew and the Pleasant Harbor Resort & Golf Course Table of Contents Introduction.............................................................................................................................. 3 ProductManufacturing......................................................................................................... 4 Functionin the Environment...............................................................................................4 ProductCharacteristics......................................................................................................... 5 ProductResearch.................................................................................................................... 6 ProductUser Experience...................................................................................................... 8 Useof Organic Matter Fertilizer at Pleasant Harbor .................................................... 8 ProductDelivery and Storage.......................................................................................... 10 GreenhouseGas Reduction............................................................................................... 10 OrganicRegistration........................................................................................................... 11 APPENDIXA............................................................................................................................ 12 • • Introduction n U • EarthRenew Corporation has developed, patented and commercialized a new organic matter fertilizer/soil amendment product that can be made from a variety of organic wastes. The "first -of -its -kind" plant is built on a cattle feedlot east of Calgary, Alberta (Canada) as shown in Figure 1. The next plant is planned for the San Joaquin Valley in California. An EarthRenew facility processes about 75,000 tons of manure annually to produce a pelleted Organic Matter Fertilizer. Figure 1: EarthRenew's Plant on a large cattle feedlot east of Calgary, Alberta. Statesman Corporation, proponent of the Pleasant Harbor Golf Resort, has an objective to have minimal impacts to the environment in the developed condition of the project. To this end, several innovative facilities and procedures are proposed. With regard to golf course Best Management Practices, Statesman would prefer to avoid the use of synthetic fertilizers. EarthRenew's Organic Matter Fertilizer is proposed as the source of fertility and organic matter to build the root zone blend for the golf course and landscaping within the development. Its continued use as a top -dressing is also proposed for long-term maintenance of the established turf. • Product Manufacturing • EarthRenew's unique Organic Matter Fertilizer is manufactured by heat -treating cattle manure at temperatures up to 1000° Fahrenheit without burning or degrading the nutrients or the organic matter (Figure 2). The process that achieves this unique result is proprietary technology and is protected under seven U.S. Patents, including No. 7,024,796 and under five Canadian Patents, including No. 2,534,691. The treated and dried organic matter from the manure is pelletized into hard, safe and easy to handle, organic granules. The patented process: i) stabilizes and prevents decomposition of the organic matter and nutrients found in cattle manure; ii) concentrates the organic matter and nutrients; iii) reduces the water content in the final product to less than 8 percent; and iv) eliminates pathogens, renders weed seeds nonviable and inactivates hormones and other chemical compounds. Costs Products Up to 4 MWh per Hour 85% Power Generated Sold ei 4, Figure 2: Simplified Process Diagram. Function in the Environment EarthRenew's organic matter soil amendment/fertilizer is ideal for use at the Pleasant Harbor Resort as there is limited topsoil to be salvaged, and in addition, nutrient management to prevent leaching into groundwater is a high priority. The development plans call for the preparation of sand and other aggregates by crushing rock available within the project development footprint. Utilizing the limited organic matter and fine-grained soil on site, together with the manufactured sand, a productive, sustainable soil mix will be prepared by blending EarthRenew with these available mineral materials (Table 1). The new soil blend created using the EarthRenew product will replace the need for and use of synthetic fertilizer on the golf course as the nutrients required to support 4 • a strong, healthy turf and other landscaping applications is contained within the pellets in the form of organic nutrients. The organic matter and nutrients are closely bound in the EarthRenew pellets. This ensures a slow-release of nutrients to support plant growth with little or no leaching or loss of nitrates to the subsurface aquifers or surface waters. The Organic Matter Fertilizer is expected to reduce irrigation requirements for the proposed golf course, as well, due to its water absorption and water retention characteristics (Appendix A). Product Characteristics With LEED Platinum as the standard to be used for development of the Pleasant Harbor Resort, high environmental standards will be implemented as part of the golf course development for the protection of air, land and water resources. The environmental challenges associated with constructing a root zone mix for the golf course and other landscape plantings within the development will be addressed as follows: EarthRenew Organic Matter Fertilizer • The high organic content ensures that nutrients are held in the rooting zone, slowly releasing the organic nutrients to make them available for plant uptake throughout the growing season. • The high organic content and nutrients promotes rapid development of the soil microbial biomass for the development and stabilization of the constructed soil blend. • The presence of the EarthRenew product in the soil blend results in improved water retention and availability over the dry summer months, resulting in an expected 15 to 20 percent reduction in irrigation requirements. • The natural slow release and utilization of nutrients results in plant uptake and utilization two or three times more effective than synthetic fertilizers due to the high rate of nutrient leaching and volatilization of chemical fertilizer. • The high organic content and water retention characteristics of the EarthRenew product promotes root development and increased root penetration to support a strong turf -matt required for a premier golf course. • A strong healthy turf contributes to weed control where the grass is able to effectively compete with invasive weed species. This in turn contributes to a reduced need for the use of herbicides. By providing improved water retention, the high organic matter content will limit the transport and 9 Sleaching of herbicides that are applied for weed control, providing a measure of protection to groundwater and local aquifers. 11 0 • High temperature processing eliminates weed seeds, chemical compounds, and potential pathogenic risks associated with manure and compost by destroying pathogens (E. Coli, Salmonella, Mycobacterium, Paratuberculosis, Cryptosporidia and Giardia among others). • There is no risk of "burning" the grass during maintenance top -dressing, even if there is a spill of product as the pH is neutral and there is no free ammonia in the product to damage tender shoots or roots. • As a result of the high temperature treatment, the product (picture below) is safe to handle and poses no risk to children, pets or wildlife. Product Research EarthRenew's Organic Matter FertilizerTM has been subjected to research evaluation for a wide range of applications in agriculture and land reclamation. The research has been conducted at the University of Arizona, California State University - Fresno, Alberta Agriculture and Rural Development -Research, Canada -Saskatchewan Irrigation Diversification Research Centre, and the University of Alberta. Summaries of the research are contained in Appendix A of EarthRenew's Prospectus filed with Securities Regulators and available at: http://www.sedar.com/DisplayCompanyDocuments.do?fang=EN&issuerNo=00029860. Some findings of these research projects include the moisture retention through the growing season using instrumentation to measure soil moisture tension. This result is of considerable interest in irrigated agriculture as it represents a potential • reduction in water input for crop production of as much as 15 to 20 percent. The finding has direct applicability to the Pleasant Harbor Golf Course, as there is a desire to limit the use of irrigation water, and a similar type of instrumentation used in the research trials will be deployed to measure soil moisture in fairways and greens. The sensors will transmit the data to a computer that will control the timing and amount of irrigation water applied to the golf course. Several studies have examined the extent of synthetic fertilizer replacement that can be achieved using EarthRenew's product. Conventional agricultural producers are able to reduce the amount and frequency of fertilizer application (intensive vegetable producers apply chemical fertilizer four to six times during one crop rotation). Organic vegetable growers can expect yields equivalent to, and in some cases better (i.e. broccoli), than conventional producers. Greenhouse and field research has demonstrated the value of Organic Matter Fertilizer as an amendment of mine tailings, both sand and quarried limestone; to reconstruct a rooting medium and build a sustainable soil for revegetation and reforestation of mined lands. EarthRenew Corporation is part of a large research and field demonstration project funded by Sustainable Development Technology Canada in association with the University of Saskatchewan, Alberta Ingenuity Fund plus corporate sponsors such as TransCanada (North America's largest pipeline company) to evaluate EarthRenew's Organic Matter Fertilizer in conjunction with equipment developed by Paragon Soil & Environmental Consulting in land reclamation and subsoil compaction mitigation. After two years of field trials on forty demonstration sites over a wide range of soil and climatic conditions from forested lands in northeastern British Columbia to the cultivated prairies of southern Alberta the results have been exceptionally positive for treating industrial compacted soil. The equipment delivers the organic pellets to various depths (as deep as 18 inches) with minimal surface disturbance. Benefits of the technology have been reported to the project sponsors by the lead researcher as: • Mitigation of soil compaction is significant as determined from improved soil structure, hydraulic conductivity, bulk density and rooting depth, • Measurable increase in nutrient pool — a significant increase in nitrogen, phosphorus and organic content that persisted over the two seasons, • Increase in yield and biomass production: - 30 to 45 percent increase in barley and wheat yield, - 50 to 100 percent increase in yield and biomass of canola and forage grasses, and • Net reduction and removal of 19 tonnes of CO2 per hectare of application (reported to Sustainable Development Technology Canada by their consultant). LJ • Product User Experience 0 In addition to the scientific research conducted by government and university scientists, EarthRenew staff and customers have several years of experience using the product in a wide array of applications from horticulture, landscaping, turf maintenance and restoration, gardening and land reclamation. Recommendations for the use and application of the Organic Matter Fertilizer at Pleasant Harbor Resort are based on both the research highlighted above, and the years of experience of the company's professional staff working with the product. Use of Organic Matter Fertilizer at Pleasant Harbor EarthRenew's Organic Matter Fertilizer is proposed for use as a soil amendment and soil organic additive in the following applications: 1) building of all golf course tees, greens and fairways; 2) long-term course maintenance; 3) site landscaping including the entrances, the golf practice facilities, around the tennis courts and other public landscaping that is not planned for native xeriscaping; 4) erosion control stabilization with grass cover on topsoil stockpiles, drainage ways, drainage control basins and other similar areas to supplement the erosion/sedimentation control Best Management Practices plan at Pleasant Harbor. The United States Golf Association (USGA) provides guidelines for all aspects of golf course design and construction (http://www.usga.org/search.aspx?q=Construction). Statesman Corporation has selected EarthRenew's product as the organic additive in the root zone mix for the reasons and benefits presented above. Table 1 presents initial guidelines for use of Organic Matter Fertilizer; specific details will be developed during the final design stage of the project. Table 1: Guidelines for use of Organic Matter Fertilizer (OMF) at Pleasant Harbor. Facility Rate of OMFApplication Application Considerations Tee Box and 5 - 10% by volume mixed with Sand from on-site crushing, salvaged Putting Green crushed, screened & graded sand. This soil and EarthRenew pellets will be Construction is 25 to 50% of the USGA specs due to blended at a preparation site adjacent the water absorption (500%) and to the crushing operation. expansion (300%) characteristics of the product (Appendix A). The homogeneous root zone mix will be hauled and spread to the specified depth of 12 inches over the pre - constructed drainage system and gravel layers. The seed -bed (top 2 inches) may contain a higher percentage of EarthRenew pellets (10 - 12%) to support the germination and establishment of newly seeded grass. • • 0 Fairway Construction Long-term Maintenance (top - dressing) General landscaping Construction erosion control 2 - 4 tons OMF per acre depending on the amount and quality of topsoil available. If a rooting zone mix must be prepared from low-grade material or glacial till plus crushed sand, the rate of application may be as high as 8 - 10 tons per acre. 1 - 2 tons OMF per acre depending on the stage of turf development. There will be little requirement for top - dressing in the first and possibly the second year following establishment. Soil nutrient analysis should guide the maintenance program, but 1 - 2 tons OMF per acre is expected to be adequate to maintain a healthy turf. As the turf matures and annual soil aeration is implemented, the soil plugs should be removed and the holes filled with EarthRenew pellets to maintain the organic matter content in the root zone. 1- 3 tons OMF per acre depending on the amount and quality of topsoil available. 0.5 to 2 tons OMF per acre depending on the urgency to achieve rapid grass growth to control erosion. The root zone blend will be prepared with blending equipment, but the amount of EarthRenew pellets may be reduced and the depth to be spread will not exceed 7 inches. Fairways will be designed to include swales and water traps, which will not require root zone mix. The EarthRenew pellets can be spread using a cyclone spreader attached to, or towed by light four-wheel drive golf course maintenance equipment. The EarthRenew pellets should be swept into the aeration holes to ensure that the holes are filled to benefit the root zone and keep the playing surface smooth. EarthRenew pellets can be added and incorporated into the landscaping soil using small rototilling equipment or by hand in constrained locations. The OMF product should be worked into the top 4 to 6 inches for most planting, and a thin layer should be placed in the hole just before trees and shrubs are planted. Low rates of EarthRenew product can be applied by hydroseeding on low - gradient terrain. The seed and organic matter are applied in one action. Fiber -mulch can be added to provide additional holding capability. EarthRenew product should be incorporated into the top 2 inches of graded material that will remain in storage piles and must be stabilized, or newly graded areas requiring an erosion controlling grass cover. Note: These application rates are provided as guidelines and may vary depending on site-specific and weather conditions at the time of application. . Product Delivery and Storage The dry, pelletized Organic Matter Fertilizer will be delivered to the Pleasant Harbor construction site using grain bulk -carrier trucks. Highway regulations in Washington State restrict the size of each truck to a single, covered trailer unit with a maximum load of approximately 25 tons of product. The product will be delivered to site and stored in standard farm hopper -bottom grain bins. A grain auger will be used to fill the bins from the belly dump trucks. Steel hopper -bottom bins will keep the product dry during all seasons of the year, they can be easily positioned as required on site, and provide convenient access, without spillage, to the product during blending operations. Up to four months supply, to meet the anticipated construction schedule, will be stored on site, which means that there will be modest truck traffic (less than two trucks per week over a three year construction period) on Highway 101 to maintain a reasonable inventory of product on site. Greenhouse Gas Reduction The principal attribute of the EarthRenew patented Direct Duel Use process technology is the high-energy efficiency achieved with the direct application of hot exhaust gases from an industrial natural gas turbine in high heat processing of the manure, while simultaneously generating electricity for use in the plant and for sale to the electrical grid. About 85 percent of the electricity generated by the EarthRenew manufacturing process is sold, which offsets much of the cost of the natural gas used to operate the plant (Figure 2). The process utilizes more than 75 percent of the Btu energy in the fuel compared to 30 percent average in each of the heat processing and power generation industries, because the heat from the natural gas is used to both generate electricity and process the manure in a single pass. An independent audit will be undertaken when nationally recognized protocols are developed to quantify carbon emission credits. Credits will be recognized for the EarthRenew processes because: 1. Every kilowatt of power produced by EarthRenew's technology replaces a kilowatt of power from a coal-fired power plant (the most common method of power generation in North America), reducing by half the carbon dioxide per kilowatt of electricity compared to a conventional coal-fired plant. • 10 2. Credit is given for EarthRenew's distributed electrical generation (eliminates electricity line losses associated with long transmission lines from large generating plants and remote hydroelectric generators). 3. Manure is processed by EarthRenew as fresh as possible, preventing decomposition and eliminating composting that would otherwise produce carbon dioxide, methane and ammonia emissions. 4. Up to 2,500 truck trips per year for off-site manure transportation and land spreading are eliminated at the Alberta facility. S. Carbon and nitrogen normally lost to the atmosphere when manure decomposes are retained in the EarthRenew pellets and are sequestered in soils through the application and incorporation of the product. 6. Use of chemical fertilizers is reduced, with resulting benefits to air, land and water resources. Chemical fertilizers produce carbon emissions in the manufacturing process and a significant loss to the atmosphere (particularly nitrogen) when applied to lands. Chemical fertilizers also leach into surface and groundwater supplies, with potential water quality impacts. 7. Replacing multiple applications of chemical fertilizers with one application of EarthRenew product for equivalent or better crop yields, further reduces carbon emissions. Organic Registration The EarthRenew product meets Organic Standards in both the United States and Canada as determined by the Washington State Department of Agriculture Organic Program and the Organic Crop Improvement Association in Canada, respectively. EarthRenew is authorized to display the WSDA "Registered Material" logo on its products. Prepared by: Don L. Dabbs, P.Ag., P.Biol. Vice President EarthRenew Corporation • �G\S�tBED Mq;P,6 Q q! IFor Use In Organic Agriculture Washington State Dept. of Agriculture V;� �= 11 • APPENDIX A r� u • 12 0 0 EarthRenew Organic Matter Fertilizer Moisture Absorption and Expansion Data and Graphs Total % Increase from Original Expansion Measured (cm) 0 05 10 15 :0 25 16 35 40 45 5.0 53 60 65 710 Torre f1wd 0 d-....-...,.- 11--.--l— —', " _ - --, — — — 0 as to to to 11 5.0 53 4.0 ts to 13 " 4's 70 "Woop"d 13 P*117 Fap— Tav" m Aqueosea Sd— - Time as Ep— Fq.—DW-- Exp.—Wf— WT—ft—{—1 %P.T—interval i5fx 0 Expansion Difference 1Y. Per Time Interval --— — — — — 05 lo 1.3 ZO 25 3.0 35 10 5,5 60 65 10 Th-m—d- 0 06 010 0A 0 05 16 2667 1.0 2667 10 22 36b.7 0.6 1000 4157 03 50.-0 —5 20 7 7 4500 02 33.3 2S 2 466.7 01 167 1 6 -1 30 85 475-0 () 1 8.3 i , — 35 29 40 29 4839 UA 00 45 29 4933 00 Do SO 29 4133 0.0 GO 5-5 29 4833 0-0 ov 6o 29 4833 0.0 00 65 224&33 220 70 4933 50 t.o Total % Increase from Original Expansion Measured (cm) 0 05 10 15 :0 25 16 35 40 45 5.0 53 60 65 710 Torre f1wd 0 d-....-...,.- 11--.--l— —', " _ - --, — — — 0 as to to to 11 5.0 53 4.0 ts to 13 " 4's 70 "Woop"d 13 David W. Johnson From: Don Dabbs [d.dabbs@EarthRenew.com] 0ent: Wednesday, July 07, 2010 12:52 PM o: Garth Mann; Vicki Morris Subject: EarthRenew Report Attachments: EarthRenew—PleasantHarbor July 7_10.pdf Garth & Vicki I am pleased to submit our report for Pleasant Harbor Resort & Golf Course. I have provided guidelines (Table 1) for the use and application of the product in the construction of five basic facilities or site -types, and defer specifications to the 'detailed design phase'. At our meeting on June 21/10, we reviewed the points in Vicki's Feb. 28/10 email. I agreed to address as many of the points as possible. 1. Moisture -Holding Capacity — I address this by relating it to the research results of last summer. There can be no definitive calculation with respect to Irrigation Demand and/or Irrigation Efficiency. Under instrumented field trials we are advised that we can expect a 15 to 20% reduction in irrigation input to maintain optimum soil moisture conditions. This can not be expressed in a reduction of X gallons per day or per acre as the irrigation requirements will be different every year. It is reasonable to assume that there will be a 15% reduction in irrigation requirement. Garth indicated his intention of using a John Deere golf course irrigation monitoring/control system. I refer to this system (no brand name used) as the combination of the our product and a sophisticated irrigation control system will ensure minimum water utilization for golf course maintenance. 2. Evaporation rate — as discussed, this is a function of humidity and evapotranspiration and I have no basis for assessing this parameter. •3. Rate of Application — this is addressed in Table 1. 4. Staging of Product and Super Bee Transport — these are addressed in the section Product Delivery and Storage. Garth decided that we would stay with trucking and not introduce other options for product delivery. 5. Reduction in Requirement for Fertilizers — The report states the intention to replace synthetic fertilizers with Organic Matter Fertilizer. The benefits of the OMF are presented and no more discussion should be required. 6. Amount of Irrigated Turf — I have not specified an area as this appears to be subject to change. Therefore, it would be unwise to lock in a specific area in my report (this information may be in another report). 7. Carbon Emission Credits — It is my opinion that it is premature to attempt to quantify credits as there is no recognized protocol for use in a carbon credit audit for our facility and product. I have addressed the topic by titling it Greenhouse Gas Reduction and provide an explanation and a listing of reasons why credits will be recognized. 8. Studies and References — I provide an overview of the key findings from our research that I feel are relevant to the Pleasant Harbor application. There is no reference or bibliography section as the reports are not available to State or County Agencies at this time. However, they are included in EarthRenew's Prospectus filed with Securities Regulators and the web link is provided. The degree of review and scrutiny that goes into a Securities Commission due diligence assessment far exceeds the peer review of many scientific journals. I trust that this will meet your needs for your meeting with County staff next week, and look forward to receiving your comments. Don 0