GSI Environment Inc., a wholly owned subsidiary of Burlington, Ontario-based Environmental Management Solutions Inc. (EMS-TSX) announced on July 27, 2006 that it has entered into a three-year contract with the City of Toronto to manage a portion of the biosolid waste material generated by the city’s wastewater treatment operations. Toronto generates arrpoximately 140,000 tonnes per year of biosolids (a.k.a., sewage sludge) that has recently been hauled to a landfill in Michigan. The company that landfilled the material indicated that it will no longer take the material after August 1, 2006.
The biosolid contract with GSI is effective August 1, 2006. Toronto is negotiating with Ontario landfills (e.g., GreenLane near London) to receive the remainder of the material until its pelletization plant is approved for startup sometime in 2007. At that time, all or most of Toronto’s biosolids will be managed by a combination of GSI Environment’s organics processing and Toronto’s pelletization plant, with little or none remaining for landfill.
The new contract is expected to add approximately $13.5-million to the company’s revenue over the next three years. It builds on EMS’ five-year biosolid waste management contract with the City of Ottawa announced in July 2005.
The City of Toronto contract is in addition to the three-year contract with GSI Environment to manage the city’s source separated organic waste that was announced in September 2005. That composting contract from the city added approximately $8 million to the company’s annual revenue.
With its operations in other jurisdicitons, GSI Environment Inc. is the largest organics composting company in Canada. GSI operates seven composting plants in Quebec. In 2005 the company received 700,000 metric tonnes of organic waste comprised of material from the industrial, commercial and institutional (IC&I) sector (e.g., food processors) and municipalities (e.g., source-separated organics, biosolids, leaf & yard waste, etc.).
According to Tony Busseri, president and CEO of GSI/EMS, the change in legislation in Michigan that created this opportunity should send a strong signal to the Ontario government that municipal waste generators need a provincial framework that will allow them to address their waste management needs in an environmentally, socially and economically acceptable way.
“By definition, sustainable development needs permanent, Ontario-based solutions,” Busseri said.
The term of the contract may be extended at the company’s option for an additional two years if the company meets certain conditions.
For further information, contact Tony Busseri, President and CEO, GSI/EMS at 905-335-2100 x22