Chevron, Fuel Cell Energy to Turn Wasetewater Sludge and Kitchen Grease into Renewable Power

Chevron Energy Solutions, a Chevron (NYSE: CVX) subsidiary, today announced that it has begun engineering and construction of a system at the City of Rialto’s (California) wastewater treatment facility that will transform wastewater sludge and kitchen grease from local restaurants into clean, renewable power.

The new system will provide a beneficial use for the thousands of gallons of fats, oils and grease (FOG) that are washed daily from restaurant grills and pans, which is collected by grease hauling companies. At the Rialto facility, a FOG-receiving station will provide an effective disposal alternative to landfills, where FOG is often disposed, creating methane - a greenhouse gas - as it decomposes, releasing it directly into the atmosphere. It also will provide a revenue stream to the city through “tipping fees” paid by grease haulers for each disposal.

The system includes a 900-kilowatt fuel cell power plant, manufactured by FuelCell Energy (NasdaqNM: FCEL), that will generate electricity without combustion using methane, a biogas produced on site from the digesters that treat the wastewater sludge and FOG. Three 300-kilowatt Direct FuelCell® units will convert the methane into hydrogen and then use the hydrogen to generate power electrochemically, without combustion. The residual waste heat from the fuel cells will be used to warm the digesters to stimulate further methane production.

The environmentally friendly system will increase municipal revenues, reduce landfill wastes and lower greenhouse emissions by nearly 5.5 million tons annually, while decreasing the city’s energy costs by about $800,000 a year.

The project, which will cost $15.1 million, is eligible for a $4.05 million rebate on the fuel cell plant cost from California’s Self-Generation Incentive Program. The remaining cost will be self-funded through energy cost savings and FOG station revenues, without any impact on local taxpayers.