Financing Soil Remediation: Exploring the use of financing instruments to blend public and private capital

The International Institute for Sustainable Development (IISD) recently released a report entitled Financing Soil Remediation: Exploring the use of financing instruments to blend public and private capital.

The report makes the statement that governments around the world are looking at opportunities to attract private capital participation in both land remediation and its productive use and redevelopment thereafter. The business case is intrinsically the value capture in the increase in retail price of land and related business opportunities once the remediation is complete. However, where land value capture is lower and related revenue streams remain uncertain, the case for private capital participation is much less compelling. Governments, in this case, have to fund the remediation through public budgets and thereafter seek opportunities to partner with private counter-parties to use the land as “fit for purpose.”

The IISD report presents 17 case studies on a variety of financing instruments that blend public and private capital. Each case study includes a short discussion on the extent to which each instrument could be used to finance the remediation of contaminated soil. The case studies in thereport demonstrate a variety of financing strategies, from index-linked bonds to savings accounts and from peer-to-peer lending platforms to debt-for-nature swaps. Find out more about Loanpad by reading this review, if peer-to-peer lending is something you have been considering to do for your business.

This report is a part of a series of outputs of a four-year project, Financing Models for Soil Remediation. The overall objective of the project is to harness the full range of green finance approaches and vehicles to manage the associated risk and fund the remediation of contaminated soils.

The series of reports focuses on the financial vehicles available to attract investment to environmental rehabilitation of degraded land and the financial reforms needed to make these vehicles a viable and desirable means of investing in land rehabilitation. The IISD draws on best practices worldwide in funding environmental rehabilitation, with a special focus on the design and use of financial mechanisms to attract private investors, share the risk and offer a clear benefit for the rehabilitated land. If you would like to make some investments, with regards to personal investment then you may want to check out some mutual funds.

Several lessons emerge from these case studies described in the report in the context of financing the remediation of contaminated land, including the following:

  1. As with all financial arrangements, the risk appetite of different investors has to match the risk profile of
    the investment. It is difficult to crowd in private and institutional investors when projects remain below
    investment grade.
  2. Money follows a good deal. When legal, technological, revenue and other risks are understood and are
    transparent, feasible ways to reduce these uncertainties can be planned and financing strategies can be
    worked upon.
  3. When there is reasonable certainty that the value of the land will increase after remediation and will
    subsequently generate stable and predictable revenues, there is a strong case for blending public and
    private financing.
  4. When, on the other hand, projects have less attractive revenue potential, governments have to step in to
    finance the remediation, or at least a larger part of it.

About the IISD

The International Institute for Sustainable Development (IISD), headquartered in Winnipeg, Manitoba, is an independent think tank championing sustainable solutions to 21st–century problems. The mission of the IISD is to promote human development and environmental sustainability. IISD focuses on research, analysis, and knowledge products that support sound policy making.

Kitchener, Ontario’s Largest Brownfield Redevelopment

Kitchener, Ontario’s biggest abandoned industrial site is well on its way into being redeveloped into a 50,000-square-foot facility for a tool and die company and a 3,150-square-metre medical office building.

The 78-acres industrial site is located on the southeast corner of Bleams Road and Homer Watson Boulevard in Kitchener, approximately 100 km west of Toronto.  It was developed with a 1.2 million square foot manufacturing facility that was constructed in several phases beginning in 1967.  The facility had been used by Budd Canada to manufacture auto parts, ThyssenKrupp Budd Canada, and eventually by Kitchener Frame.  The land has sat idle since 2009.

2010 Photo of fhe former Kitchener Frame Building (Photo Credit: Philip Walker/Record staff

In 2010, a group of investors purchased the property with the vision of redeveloping it.  It has taken eight years for the redevelopment to reach its current state – a series of approvals from various levels of government and a plan to start construction in early 2019.

The site is still waiting approval of the Record of Site Condition (RSC) from the Ontario Ministry of the Environment, Conservation and Parks (MOECP). It was filed in January of 2018.  An RSC is typically required by on Ontario Municipality if a property is being redevelopment for a more sensitive land use (i.e., from industrial to commercial or residential).  It is filed by an environmental consultant following the clean-up of a property.  It summarizes the environmental condition of a property based on the completion of environmental site assessments (i.e., Phase I & II ESAs).

Site Clean-up

Demolition work and subsequent site cleanup got underway in November 2011. The environmental remediation cost an estimated $8.5 million.

A soil remediation program was conducted at the property between April and June 2016 in an attempt to reduce the
concentrations of the contaminants of concern s in soil identified at the property. The remediation activity at the site included the excavation of approximately 9,360 cubic metres (5,200 tonnes) of contaminated soil for disposal at a licensed non-hazardous waste landfill.  No sediment or groundwater was remediated or removed for the purpose of remediation.

The clean-up of the site included the preparation of a Streamlined Tier 3 Risk Assessment Report.   A risk assessment provides an approach for developing property specific standards (PSS) under Ontario Regulation 153/04 (Records of Site Condition (RSC) – Part XV.1 of the Act), made under the Environmental Protection Act (the Regulation). A Tier 3 Risk Assessment goes beyond the generic approach of a Tier 2 risk assessment and involves a longer and more detailed review by the MOECP. According to the filed RSC, the MOECP has approved of the Streamlined Tier 3 Risk Assessment.

As reported in the Kitchener Post, a total of $7,787,000 in direct remediation costs are eligible to be reimbursed by the city and region under a joint tax increment grant application. The total estimated post redevelopment assessment value is estimated at more than $111 million.

Redevelopment

In an interview with the Daily Commercial News, Janinen Oosterveld, manager of site development and customer service in Kitchener-Waterloo’s planning division stated: “Approvals to finalize the subdivision of the lands into development parcels is currently underway.”

As of mid-October, the city had received site plan applications for two developments — a 50,000-square-foot facility for a tool and die company and a 3,150-square-metre medical office building.

Plans for the redevelopment envisage nine industrial parcels, totaling approximately 39 acres.

Future redevelopment of the former industrial property on Homer Watson Boulevard, Kitchener, Ontario (Photo Credit: Bill Jackson/Metroland)

 

Business Opportunities for Environmental Research and Development

The United States Department of Defense’s Strategic Environmental Research and Development Program (SERDP) is seeking environmental research and development proposals for funding beginning in FY 2020. Projects will be selected through a competitive process. The Core Solicitation provides funding opportunities for basic and applied research and advanced technology development. Core projects vary in cost and duration consistent with the scope of the work proposed.

The Statements of Need (SON) referenced by this solicitation request proposals related to the SERDP program areas of Environmental Restoration (ER), Munitions Response (MR), Resource Conservation and Resiliency (RC), and Weapons Systems and Platforms (WP).

The SERDP Exploratory Development (SEED) Solicitation provides funding opportunities for work that will investigate innovative environmental approaches that entail high technical risk or require supporting data to provide proof of concept.

Funding is limited to not more than $200,000 and projects are approximately one year in duration. This year, SERDP is requesting SEED proposals for the Munitions Response and Weapons Systems and Platforms program areas. All Core pre-proposals are due January 8, 2019. SEED proposals are due March 5, 2019. For more information and application instructions, see https://www.serdp-estcp.org/Funding-Opportunities/SERDP-Solicitations.

Market Report on VOC Detectors

VOC Detector Market

QY Research recently published the Global Market Study VOC Detector Market Provide Forecast Report 2018 – 2025.  The report presents a detailed analysis of the VOC Detector market which researched industry situations, market Size, growth and demands, VOC Detector market outlook, business strategies utilized, competitive analysis by VOC Detector Market Players, Deployment Models, Opportunities, Future Roadmap, Value Chain, and Major Player Profiles. The report also presents forecasts for VOC Detector investments from 2018 till 2025.

United States is the largest Manufaturer of VOC Detector Market and consumption region in the world, Europe also play important roles in global VOC Detector market while China is fastest growing region. The 126 page VOC Detector report provides tables and figures and analysis the VOC Detector market. The report gives a visual, one-stop breakdown of the leading products, submarkets and market leader’s market revenue forecast as well as analysis and prediction of the VOC Detector market to 2025.

Geographically, this report splits the global market into several key Regions, with sales (K Units), revenue (Million USD), market share and growth rate of VOC Detector for these regions, from 2013 to 2025 (forecast), covering United States, China, Europe, Japan, Southeast Asia, and India.

The report provides an analysis of the global VOC Detector market competition by top manufacturers/players, with VOC Detector sales volume, Price (USD/Unit), revenue (Million USD) and market share for each manufacturer/player.  The top players include the following: REA Systems; Ion Science; Thermo Fisher; Skyeaglee; Omega; and E Instruments.

The report provides an overview of the global market on the basis of product.  This report displays the production, revenue, price, market share and growth rate of each type, primarily split into the following types of detectors:
PID and Metal-oxide Semiconductor.   The report also breaks down the global market based on application as follows:  Environmental Site Surveying; Industrial Hygiene; and HazMat/Homeland Security.

RAE Systems Gas Detector

Environmental Industry M&A in 2018

Environmental Business International, Inc. (EBJ) recently published the 2018 Environmental Industry Mergers and Acquisitions.  The book provides an in-depth analysis of the mergers and acquisitions (M&A’s) that have occurred in the environmental industry in 2018.  Included in the publication are discussions on Stantec’s additions in the UK, Australia and New Zealand along with cultural fit in employee-ownership model at Golder.

The publication states that experts are calling 2018 as the “strongest year we have seen in this decade” with respect to M&A’s in the environment industry. According to the findings in the publication, M&A activity is at record levels and is up 20% over 2017. Some experts assert that Merger & Acquisition activity may be cresting in 2018, but many experts and deal-makers see scope for continued pace. Generally optimistic outlooks drive investment strategies of companies, private equity firms and corporate acquirers, but acquirers and sellers keep their correction contingency plans close at hand.

According the findings in the report, analysts, management consultants and investment bankers report that multiple factors are aligned to continue the strong pace of M&A and high valuations,

Exhibits in this 2018 Environmental Industry Mergers and Acquisitions edition of EBJ include:

  • Consolidation of U.S. C&E Industry 1990-2017
  • Top 10 U.S. Remediation Firms 2000-2016 (Gross Revenues in $mil)
  • Share of Top Companies in U.S. C&E Industry 2000-2017
  • Top 5 & 10 U.S. Environmental C&E Firms 1995-2017(Gross Environmental C&E Revenues in $mil)
  • A Decade of US M&A Activity in the AEC Industry
  • 2007-2018 Interstate M&A Deal Flow in AEC
  • 2018 Year-to-Date Heat Map of Regional AEC M&A Activity
  • Influence of Publicly-Traded Buyers in AEC M&A, 2007-2018
  • Influence of Private Equity in AEC M&A, 2013-2018
  • Most Prolific Buyers (2011 – YTD 2018)
  • Several revenue history and acquisition lists for profiled companies
  • Levels of Interest That Help Determine Value in AE Firms
  • U.S. M&A Activity in Environmental and Industrial Services: 2009-2018
  • M&A Activity in Environmental Services: Special Waste & Environmental Engineering & Consulting

For more information on the environmental C&E industry, visit Reports & DataPacks page.

Chemical hazard training using Simulator Detectors

by Steven Pike, Argon Electronics

The ability to deliver consistent, engaging and true-to-life chemical hazard detection training scenarios relies on regular access to realistic, hands-on equipment.

What’s vital is that these training tools replicate not only the readings and the responsiveness of real detectors, but that they also provide trainees with an authentic experience that recreates the potential challenges that they will face in actual incidents.

Training for CBRNe and HazMat threats

Planning exercises for modern-day CBRNe and HazMat threats has never been more complex, with the need to respond to anything from clandestine laboratory searches to major industrial incidents, chemical improvised explosive devices or terrorist threats.

And key to the success of any training scenario is the capacity for instructors to be able to create compelling training experiences that are straight-forward to set up and easy to repeat.

While training with Live Agents (LAT) can still have a role to play, it introduces a substantial degree of risk to instructors, students, their equipment and the environment – not to mention incurring greater cost, increased administrative effort and a heavier regulatory burden.

Simulant training is often viewed as presenting a safer “middle ground” for CBRNe and HazMat exercises, bringing with it the advantages of a more credible, real-life experience but at the same time reducing risk through the use of smaller, controlled quantities of substances.

But even in the most carefully managed of exercises, the use of simulants brings with it certain disadvantages. It can often restrict the breadth and variety of scenarios – for example, when they are required to be used in confined spaces, or where wind, temperature or training location can impact negatively on the learning experience.

It is also increasingly common for modern detectors to provide limited response to simulant sources, due to their highly developed interference rejection (IR) capabilities.

The good news though is that safe, high-quality and easily repeatable CBRNe/HazMat training needn’t be so complicated.

Simulator detectors for CBRNe and HazMat training

One solution that has revolutionized modern approaches to chemical detection training is the adoption of innovative and safe detector training aids that replicate the functionality of real devices.

These intelligent, electronic training tools place instructors in control, they are environmentally friendly, they can be set up in an unlimited variety of indoor and outdoor locations and they offer powerful after action review features.

Let’s now take a closer look at one specific example of a chemical hazard detector – the Smiths Detection LCD3.3 – and its simulator equivalent – the LCD3.3-SIM, also known in the USA as the M4A1 JCAD and M4A1 JCAD-SIM respectively.

The Smiths Detection LCD3.3

The Smiths Detection LCD3.3 is a person-worn device which is reported to be the most widely deployed chemical detector in use today.

It is used for the detection of Chemical Warfare Agents (CWAs) – including nerve, blood, blister and choking agents – as well as for the identification of a selected library of Toxic Industrial Chemicals(TICs). The detector also incorporates different operating modes ensuring optimal detection capability.

The detector is simple to operate, requires no calibration or routine maintenance and can log up to 72 hours of mission data for further analysis while user replaceable sieve packs reduce the need for factory based overhaul. A key benefit of this detector is its ability to specifically identify CWAs, however this advanced selectivity and makes simulant based training challenging.

The Argon LCD3.3-SIM

The LCD3.3-SIM is a training device that has been designed replicate the features and functionality of the actual LCD3.3.

The simulation detector responds to electronic sources that imitate the effects of chemical vapors, toxic substances and false positives and that realistically replicate the effects of wind direction and temperature, the depletion of sieve packs and batteries, confidence testing and the use of a survey nozzle.

With no requirement for simulants as part of training, there is zero possibility of environmental contamination or health and safety risk to instructors or students.

The device is compatible with a wide variety of other simulators (including simulators for the AP2C, AP4C, CAM, LCD3.2 and the RAID-M100) which means that multi-detector and multi-substance training can take place within the same scenario.

The inclusion of a remote control feature provides CBRNe and HazMat instructors with complete management of the exercise – from deciding on the effectiveness of decontamination drills, to simulating the effects of wind, temperature and persistency and the ability to instantly reset a scenario in readiness for a new exercise.

After Action Review (AAR) enables instructors to confirm that their students have set up and used the detector in accordance with the procedures for the real-life device. In the event of student error, the student performance reporting feature provides a detailed breakdown of their actions to assist with learning.

The use of innovative simulator detector training systems significantly increases personnel safety, as well as enhancing learning and easing regulatory pressures.

Such devices also place the instructor firmly in control of the exercise to ensure you’re delivering consistent, verifiable and measurable CBRNe/HazMat training outcomes.

This article was first published as a blog on the Argon Electronics website.

__________________________

About the Author

Steven Pike is the Founder and Managing Director of Argon Electronics, a world leader in the development and manufacture of Chemical, Biological, Radiological and Nuclear (CBRN) and hazardous material (HazMat) detector simulators.

When Oil and Water Mix: Understanding the Environmental Impacts of Fracking

Dan Soeder, director of the Energy Resources Initiative  at the South Dakota School of Mines & Technology, has co-authored the cover article titled “When oil and water mix: Understanding the environmental impacts of shale development,” in the recent issue of GSA Today, a magazine published by the Geological Society of America.

The article explores what is known and not known about the environmental risks of fracking with the intent of fostering informed discussions within the geoscience community on the topic of hydraulic fracturing, says Soeder. Soeder’s co-author is Douglas B. Kent of the United States Geological Survey.

In this paper, Soeder and Kent bridge the gap in consensus regarding fracking, providing current information about the environmental impacts of shale development. The article is open access and adheres to science and policy, presenting a complicated and controversial topic in a manner more easily understood by the lay person.

“Geoscientists from dinosaur experts to the people studying the surface of Mars are often asked by the public to weigh-in with their opinions on fracking. We wanted the broader geoscience community to be aware of what is known and not known about the impacts of this technology on air, water, ecosystems and human health.  A great deal has been learned in the past decade, but there are still critical unknowns where we don’t yet have answers,” Soeder says.

Development of shale gas and tight oil, or unconventional oil and gas (UOG), has dramatically increased domestic energy production in the United States and Canada.  UOG resources are typically developed through the use of hydraulic fracturing, which creates high-permeability flow paths into large volumes of tight rocks to provide a means for hydrocarbons to move to a wellbore. This process uses significant volumes of water, sand, and chemicals, raising concerns about risks to the environment and to human health.

In the article, Soeder and Kent address the various potential impacts of fracking and how those impacts are being addressed.  Risks to air include releases of methane, carbon dioxide, volatile organic compounds, and particulate matter. Water-resource risks include excessive withdrawals, stray gas in drinking-water aquifers, and surface spills of fluids or chemicals. Landscapes can be significantly altered by the infrastructure installed to support large drilling platforms and associated equipment. Exposure routes, fate and transport, and toxicology of chemicals used in the hydraulic fracturing process are poorly understood, as are the potential effects on terrestrial and aquatic ecosystems and human health.

Schematic diagram illustrating unconventional oil and gas (UOG) development activities relevant to research on human-health and environmental impacts (not to scale): well-pad construction (1); drilling (2); completion/stimulation (3, 4); production of natural gas (5) and oil (6) with well casings designed to protect drinking-water aquifers; ultimate closure (plug and abandon), illustrating legacy well with leaking casing (7); wastewater disposal (8); induced seismicity (9); landscape disturbance (10); and potential for transport pathways from deep to shallow formations (11). Also represented are water supply wells in shallow and deep aquifers (12). Photographs by Dan Soeder.

 

Access Hazmat Management Magazine via Twitter

Follow us on twitter at @hazmatmag for the latest news on contaminated sites, brownfields, spills and spill response, hazmat, and dangerous goods in Canada, North America and the world.

Did the City of Hamilton overpay for a Brownfield Site

As reported by the CBC, the City of Hamilton recently paid $1.75 million for a brownfield site that once sold for $2.  The property, located at 350 Wenworth Street North, sold for $2 a decade ago and then for $266,000 two years ago.

In the property was purchased in 2013 for $266,000, hundreds of barrels of toxic waste were discovered behind a fake wall.  The barrels contained coal tar byproducts and industrial solvents, and roof tar.  The new owner arranged for the proper disposal of the barrels.  The Ontario Environment Ministry confirmed  in  an e-mail to CBC that the waste had been from the building and it was decontaminated by the fall of 2017.  It also confirmed that the clean-up included the removal of approximately 200,000 litres of liquid waste.

The cleanup of the toxic property has been going on intermittently since 2010 (Photo Credit: Hamilton Spectator) photo

It is not known how much the clean-up of the 800 barrels of toxic waste cost, but the Hamilton Spectator quoted the owner  in 2017 that the clean-up would cost $650,000.

Property records for the building stretch all the way back to 1988, when Currie Products Limited spent a million dollars for 350 Wentworth. Currie ran a tar facility that went out of business there in the late 1990s, and was considered by many to be the company that originally polluted the site. Owner John Currie died in 2013.

Through the years, the building has changed hands multiple times for a wide swath of prices, ranging from that original million dollars, to $610,000 in 2007, to $2 in 2008, to the tax sale in 2016 and now, for $1.75 million. Over that time, building owners fought with each other and the province over who was actually responsible for cleaning up the site, in some cases heading to court in search of a resolution. For each sale, the price of the property reflected what buyers knew about the site at the time.

The city’s purchase of the property is all part of a reshuffling of buildings in the area to create a transit hub for the lower city like the Mountain Transit Centre at 2200 Upper James.

While it appears the city could have saved money by taking over the property when it was up for tax sale, that’s not really the case, officials say. The city does sometimes take carriage of properties after a failed tax sale, but woudn’t do so on a property like this one with environmental issues, Hamilton City Councillor Matthew Green told the CBC.  He added, “The city won’t take on the liability by policy.  The liability is way too big, because you don’t know what you’re buying … you have no idea what could be found or buried.”

The city bought 350 Wentworth St. N., which has required much cleanup over the years. Most recently, 200,000 litres of liquid waste was removed from the site in 2017 (Credit: The Hamilton Spectator)

 

 

 

Brantford Showcases its Brownfield Projects

Known as the Telephone City, Brantford may also become famous as one of the first municipalities in Canada to proudly showcase its brownfield projects.

Instead of hiding from its industrial past, the city is showcasing several brownfield projects and is encouraging residents and visitors to take the self-guided tour.  Eight projects in various stages of remediation or redevelopment are highlighted in the  tour.

Highlights of the the tour are the Greenwich Mohawk Site, Sydenham-Pear Site and Edward Gould Park.  The Greenwich Mohawk Site alone is over 50 acres and was remediated over the course of two years, starting in 2014.

 

 

 

The City is investing $5,000 per year to promote the tour and hopes to attract interested individuals, school groups, and others.  The tour itself provides participants with access to historical photos, newspaper articles and other project details through the tour website.

Users can access the Brownfields Discovery Tour online at Brantford.ca/BrownfieldsTour where they can follow along digitally or print a hard copy of the tour.

“The City of Brantford has become widely recognized as a leader for remediation, redevelopment and public education of brownfields,” said Amy Meloch, chair of the brownfields community advisory committee in an interview with the Brantford Expositor. “The tour is an exciting continuation of the work of the committee to raise awareness to both residents and visitors of the extensive work already accomplished in the city.”

The sites on the tour include those that are municipally and privately owned.  They are:

  • 186 Pearl St. – a 0.38-hectare site located in a residential area, this site was home to Brantford Emery Wheel Co. (1910-1920) and the Brantford Grinding Wheel Co. (1920-1939). Bay State Abrasives was involved in similar manufacturing operations there. The city removed an underground storage tank, removed the existing structures, cleaned the contaminated soil and planted sod at a cost of about $175,000. The property has been converted into a park.
  • 347 Greenwich St. and 22 and 66 Mohawk St. – Referred to collectively as the Greenwich Mohawk Brownfield Site, the companies and industry formerly housed on these properties are a significant part of the city’s history. The 27.9-acre 347 Greenwich property is the former site of Massey-Harris Co., established in 1891. It employed thousands of Brantford employees over the years. A 2005 fire destroyed most of the buildings and the city acquired the property in 2007.
  • 22 Mohawk St. – This 7.25-acre property has been home to Adam’s Wagon Co. and Brantford Coach and Body, later Canada Coach and Body, where military vehicles were manufactured during the Second World War. Later, Sternson Group was there.
  • 66 Mohawk St – The Brantford Plow Works, later Cockshutt Plow Co., was established here in 1877, making high-quality farm implements. The farm division was sold to White Farm Equipment in 1962. That company went bankrupt in 1985. The city acquired all three properties by 2007 and a two-year remediation started in 2014 at a cost of $40.5 million.
  • Sydenham Pearl site – Consists of two properties: 17 Sydenham St., the former Crown Electric, and 22 Sydenham, the former Domtar (Northern Globe) site. The sites served as the main locations for mass industry for almost a century. The city took over the properties 2004 and 2006. Remediation was done in 2015 and 2016 and a soil cap was installed. The site will be green space until next steps are explored by the city.
  • 85 Morrell St. – The city sold the property, once occupied by Harding Carpets Limited, to King and Benton Development Corporation, which cleaned and renovated the 10-acre property to include warehouses and offices for industrial use.
  • 168 Colborne St. West – This 11.5-acre property was the site of the former Stelco Fastners manufacturing plant. In 1999, it was purchased by King and Benton. Work is underway to redevelop the site for mixed uses, including multi-storey residential buildings.
  • 111 Sherwood St. – Home to Brantford Cordage Co. during the early 1900s. At its peak, the twine producer employed 700. It has remained active with a variety of commercial and industrial uses, including a brewery and fitness studio.
  • 232-254 Grand River Ave. – In 1891, this 4.87-acre site was developed as a cotton mill by Craven Cotton Mills Co. It then became Dominion Textiles Co. and then Penman’s Manufacturing Co. Textile manufacturing continued on the site for almost 100 years until it was sold to a land developer in 1984. It is now being remediated for a mix of affordable housing and market-rate townhouses.
  • 180 Dalhousie St. – The 0.52-acre site is a consolidation of four properties, which, over the years, housed various residential and commercial operations, including Castelli Bakery, which closed in 2011. Today, a four-storey student apartment building is there.

Greenwich-Mohawk Brownfield Site circa 2013