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The Delaware Department of Natural Resources and Environmental Control announced today that DNREC Secretary Shawn M. Garvin has approved permits associated with the expansion of Bioenergy Devco, LLC’s Seaford facility – an expansion which will enable the company to produce biogas at the company’s organic waste composting operation at the site. A DNREC Secretary’s Order issued today authorizes Bioenergy Devco (BDC) to construct an anaerobic digestion system, a wastewater pre-treatment system and a biogas upgrading plant. BDC currently accepts organic waste from poultry industry sources for composting.

The DNREC Secretary’s Order approves five new permits for BDC, including:

The permits are published at the DNREC website at de.gov/biodevco. The permitting process for BDC’s biogas production “included a significant amount of outreach to and from the community,” Secretary Garvin said in the DNREC order. “The permits being issued to BDC are reflective of the applications submitted to DNREC, the comments provided by the public on this matter during the public comment period and the Oct. 26, 2022 public hearing, as well as being consistent with our mission to protect human health and the environment.”

Once the permits are issued by the impacted DNREC divisions, BDC will be authorized by the State of Delaware to initiate the construction phase of the Seaford facility’s expansion. When construction has been completed and certified by DNREC, BDC will begin operating the anaerobic digester in addition to the existing composting facility. The anaerobic digester will produce cleaner gas and digestate. Composting operations at BDC’s Seaford facility have continued throughout the permitting process.

Once BDC’s expanded Seaford operations reaches full capacity, it will process an expected 250,000 tons of organic wastes from the poultry industry annually into stable compost which can be used regionally to replace chemical fertilizers – along with the biogas – renewable natural gas – to be produced and injected into Chesapeake Utilities’ pipelines for use by the utility’s Sussex County customers. BDC’s processing of poultry waste is expected to lessen the nutrient burden on local watersheds, helping to reduce pollution and nutrient runoff within Delaware and the Chesapeake Bay.

About DNREC The Delaware Department of Natural Resources and Environmental Control protects and manages the state’s natural resources, protects public health, provides outdoor recreational opportunities, and educates Delawareans about the environment. The DNREC Division of Air Quality monitors and regulates all emissions to the air. The DNREC Division of Water manages and protects Delaware’s water resources. The DNREC Division of Waste and Hazardous Substances ensures Delaware’s wastes are managed to protect human life, health, safety and the environment. For more information, visit the website and connect with @DelawareDNREC on Facebook, Instagram, Twitter or LinkedIn.

Media Contacts: Nikki Lavoie, [email protected]; Michael Globetti, [email protected]

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Related Topics: air quality, Bioenergy Devco, permitting and regulation, water quality

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SEAFORD — NAI Coastal has signed a deal to become the exclusive broker of the rising Nylon Capital Shopping Center developed by 9th Street Development Company.

Under the arrangement, NAI Coastal has started marketing between 60,000 and 80,000 square feet of the redeveloped shopping center, specifically the northern end facing Stein Highway. The developer already has anchor tenants, The Mill, Delaware Technical Community College and Bright Bloom, an early education Montessori school, signed up for the southern end of the property.

Principal Chris Davis and Associate Advisor Shelby Gillis will exclusively offer for lease all commercial availability within the redeveloped site.

“With this project, we’ve never jumped at the first prospect to come to us, whether it’s architects and construction management teams. It’s the same with our brokers,” 9th Street Development Company developer Rob Herrera said. “The reason why we landed with NAI Coastal is they’re local to the market and there’s a real strategy to that.”

NAI Coastal is the Delmarva Peninsula affiliate of NAI Global, a worldwide network of commercial real estate firms. Headquartered out of Salisbury, Md., the firm has been dealing in warehouse and retail space in Sussex County for years, and notably brokered the deal on Amazon’s Seaford warehouse at the end of 2022. Established in 2019, the brokerage firm works in partnership with Gillis Gilkerson to capitalize on the rising growth in the Delmarva region.

Both Davis and Gillis lobbied to work with 9th Street Development Company within weeks of the first announcement of the redevelopment project in Seaford. Back in December 2022, Herrera announced that his firm would be reviving the almost-empty shopping center with a $5.4 million grant from Seaford and state funding.

“When they first put out that press release, we started talking from there. After we met up in February, we just continued to stay in touch,” Gillis said. “I think part of what made it work was our bond to the area. Chris and I both are locals, and we have strong ties here. We’re able to help local businesses and show them there’s an opportunity in Seaford for this redevelopment.”

With NAI Coastal’s reach on national platforms, the firm also has the ability to tap into national chains. But notably, Herrera and his company are also taking cues from the community in what they want to see come or stay in Seaford. He confirmed that Rite Aid has renewed its lease for 15 years. The Dollar Tree and Sal’s Italian Pizza would stay, and neighbors want to see a bowling alley return to the space. Herrera has interviewed several prospective tenants for the spot.

“We do need a balance, and I don’t think I would be happy if there was only chain retail here. It’s not the right fit,” Herrera said. “This is a project very much inspired by the community. It wouldn’t send the right message of not having a single local community vendor.”

Davis noted that NAI Coastal has relationships with the local business leaders in Sussex County and Maryland lower shore, from the health care sector to recreational and restaurant concepts from the beach.

“What we typically try to do is quietly secure big users so we have commitments in and then you build the community around that and we can backfill the entertainment components,” Davis said. “Now that that’s done, we’re in a position to help pick and choose what’s in the smaller spots. We’re reaching out to restaurants along the beach, breweries and ice cream shops as well.”

Seaford is one of the major towns in western Sussex County, but with 8,500 people it’s still a rural area. But Davis added that with other towns, Sussex’s development continuing to push west and 45-minute drive from Cambridge, Easton, and Salisbury in Maryland, that market can hit up to 250,000 people.

“With the cost-of-living on the east end, people are living on the western side of Sussex County – and there’s still a pretty big service component Seaford serves,” Davis said. “I do think there is a void in the western side for entertainment, health care, education and more. We think this will be an exciting project.”

As for 9th Street Development Company, Herrera said there’s already been a lot of retail interest in the Nylon Capital Shopping Center even before the demolition has properly started.

“It’s mostly word of mouth at this point, and I’ve been blown away with the response. We’re actually in a place we can afford to be a little picky, as crazy as that sounds,” he said.

Seaford’s city council is considering whether to allow businesses — also known as artificial entities — the right to vote in municipal elections, making the western Sussex County city the largest municipality in the state to consider such a measure.

Delaware is one of only three states that allow municipalities to give nonresident property owners voting rights in local elections. When Rehoboth attempted to extend that right to artificial entities — including Limited Liability Corporations — in 2017, the ACLU and government transparency advocates joined residents opposing the measure, prompting Rehoboth’s mayor to withdraw the proposal.

Seaford’s proposal draws from the only two towns in Delaware that allow artificial entities to vote in municipal elections: Henlopen Acres and Fenwick Island. Seaford already allows nonresident individuals who own property in the city to vote in municipal elections.

The current draft proposal would allow non-resident property owners to vote through a designee with power of attorney; a person owning multiple properties could only vote once. In contrast, business owners who rent space in Seaford could not vote.

Seaford Mayor David Genshaw says the proposal emerged from requests from business owners seeking a say in city decision-making that can impact their utilities payments, revenues and investments.

“The genesis is that there are people who have invested a ton of money in our town – in businesses – and then wonder why they can’t vote, but their employees can, just because they live outside of city limits," he said. "They have a valid point.”

Some council members took issue with excluding business owners who rent space in Seaford, arguing that they are impacted by the council's decisions no less than business owners who own their properties. But others raised concerns that allowing businesses who rent properties to vote would open the door for large corporations like Walmart, which rents property along Route 13, to vote in local elections. Councilman James King argues council needs to be consistent when granting voting powers.

“We can’t pick and choose and say, ‘he’s a small business owner that doesn’t own the building but is renting the property and living outside Seaford – he can vote,'" he said. "And when it’s a large corporation, we say, ‘ah, well.’”

The council opted to table the proposal to clarify details. If adopted, the charter amendment would require the approval of the General Assembly before taking effect.

Delaware is receiving almost 66 million dollars in federal funding to help communities hardest hit during the pandemic.

Delaware is receiving $65.9 million in American Rescue Plan Act Capital Projects Fund money for construction and renovation of 29 nonprofit community facilities in all three counties.

The facilities will provide services or activities that directly enable work, education, and health monitoring in areas with unmet needs.

Sen. Chris Coons says the funding will help a variety of organizations.

"This is a great investment in the capital needs of nonprofits up-and-down our state. Youth centers, community centers, senior centers, homeless shelters,” said Coons. “The types of organizations like St. Patrick's that we've known for decades and others that are relatively new."

Almost a third of the funding - $20 million - will go to the Community Education Center South to redevelop the former Nylon Capital Shopping Center in Seaford.

Delaware State University and Delaware Tech are slated to establish campuses there. A medical facility, early learning center, and a co-working space for start-up companies are also planned at the site.

The Food Bank of Delaware will get over $7 million for a new facility in Milford and to expand its Newark facility.

The Forum to Advance Minorities in Engineering gets $7 million for a new Wilmington headquarters, West End Neighborhood House receives over $2.7 million, and Code Purple Kent County will receive $550,000.

Gov. John Carney says these projects are ready to move forward.

"These applications were put in some time ago. A lot of them have to do with HVAC improvements, all of which were very important during COVID, and in many cases enables these community centers to serve more people, more children. It does also include new facilities and expanding service areas. So that's an important part of it too," said Carney.

The projects cover three categories - those focusing on children, those investing in communities, and those focused on safer housing and a stronger economy.

Delaware submitted its plan to the U.S. Treasury in January 2022, and it was approved May 1, 2023.

Below is how the funding is being allocated:

FOCUS ON OUR CHILDREN

INVESTING IN OUR COMMUNITIES

SAFER HOUSING, STRONGER ECONOMY

SEAFORD — Two years after Bioenergy Devco announced plans for an anaerobic digestion system in Sussex County, the Delaware Department of Natural Resources and Environmental Control has approved permits for the project.

Bioenergy Devco, a Maryland-based company, has proposed the state’s first digester system that would break down poultry waste into biogas, an organic-based relation of natural gas, and other products like soil. The $50 million digester would be an addition to the company’s 220-acre campus in Seaford, where it already composts 30,000 tons of chicken litter per year into fertilizer for companies like Scott’s and Coast of Maine.

With the approval from DNREC, Bioenergy Devco can move forward with a digester system that aims to handle 250,000 tons of feedstock per year. Bioenergy officials claim that the Seaford digester will generate 410,000 one million British thermal units (MMBTUs) per year — and reduce greenhouse gas emissions equivalent to 11,545 homes’ electricity use or 18,800 cars per year.

“Organics recycling is a game-changer in our collective fight to protect our climate and prevent pollution in the Chesapeake Bay,” Bioenergy Devco CEO Shawn Kreloff said in a prepared statement. “By preventing organic waste from ending up in landfills, incinerators or being land-applied raw, anaerobic digestion reduces greenhouse emissions for cleaner air, averts runoff that endangers the ecosystems of our waterways and generates a source of clean, renewable energy.”

DNREC Secretary Shawn Garvin approved five permits: a resource recovery permit, two air quality permits and two wastewater facility construction permits. The project includes four digesters with air pollution control equipment and a wastewater pretreatment system that turns poultry waste into digestate, or a slurry. Bioenergy Devco plans on using the slurry in its compost facility.

DNREC Secretary Shawn Garvin said the agency looked at the technology Bioenergy Devco proposed, specifically the mechanical pieces of the process and how potential emissions and waste would be handled.

“I don’t know that I would consider this new technology in a sense of looking at it from a permitting standpoint. There are some things that wouldn’t be waste – either from an air standpoint or land standpoint that’s being turned into byproducts,” Garvin said. “Overall, that lowers the kind of footprint for waste.

“There’s been a lot of conversation over the years about byproducts of the poultry industry, and it’s the same thing with food waste,” he added. “It doesn’t become waste if it can be a product, and so this process [proposed by Bioenergy Devco] takes those pieces and puts them back into beneficial use.”

Bioenergy Devco has a 20-year history of building facilities and digesters in seven countries, aided by acquiring longtime Italian digestor developer BTS Biogas. As the global conversation turns to renewable energy resources, anaerobic digestion has become a viable option in several European countries, notably in the United Kingdom, Germany and Denmark.

The company’s first American digester was constructed in Jessup, Md., but that handles food waste compared to poultry waste. However, more and more digesters are appearing throughout America. The U.S. The Department of Agriculture reports that there are 322 on-farm systems in operation as of 2021, with 50 that launched in that year.

The USDA also reports that anaerobic digesters slowed in use after 2013, with closures outnumbering new facilities 10-to-4 three years later. Reasons cited in 2016 for closures, if reported, included “include high operational costs, odor complaints, and mechanical issues.”

One supporter of the rise of digesters is U.S. Senator Tom Carper (D-Del.) who is the chairman of the U.S. Senate Environment and Public Works Committee. He toured Bioenergy Devco’s Maryland facility with Senator Ben Cardin (D-Md.) to understand the process.

“This is welcomed news in our efforts to address Delaware’s poultry waste by turning it into renewable energy. Not only will this reduce greenhouse gas emissions and pollution in surrounding communities, but it also promotes job creation and supports one of Delaware’s most important industries,” Carper said in a prepared statement.

Bioenergy Devco has agreements in place with Delaware companies like Perdue and Chesapeake Utilities to work in tandem with these operations. In 2019, Bioenergy Devco officials signed a 20-year deal to take over the composting operation in Seaford.

Then in 2020, Chesapeake Utilities inked a deal with the company for the biogas. Earlier plans had that Chesapeake Utilities would truck the natural gas away for processing and eventually entry into its Eastern Shore Natural Gas pipeline.

Delaware is also pursuing reducing net emissions by 50% by 2030 and 100% by 2050, per the recently signed Climate Change Solutions Act, which codifies a plan set in place by Gov. John Carney’s administration. The permit issued by DNREC for air quality is based on the potential to emit and emission limitations based on worst-case scenarios and a combination of federal guidance, among other factors.

“It’s consistent with some of the pieces in the Climate Action Plan, looking at natural ways to address energy as well as capturing potential impacts to greenhouse gasses,” Garvin said. “There is a recognition of the ability for more ways to capture greenhouse gasses – and the more beneficial it is, at least to our responsibility on the mitigation side.”

For years, the Bioenergy Devco proposal has been controversial in Sussex County and has seen consistent opposition from the U.S. Food and Water Watch, an environmental advocacy group. At the crux of the opposition is that it will draw more “factory farms” to come to the Delmarva region, which is already known as a top chicken producer in the country.

Other concerns, highlighted at a three-hour meeting last fall, focused on the potential for gas leaks or worse for the western Sussex County.

U.S. Food and Water Watch attorney Tyler Lobdell issued a statement that called Gov. John Carney’s role in the permit approval, “without necessary environmental review or oversight… a dereliction of duty.”

“Factory farm gas is not welcome in Delaware,” Lobdell said. “Bioenergy Devco’s proposed methane refinery threatens to cause further harm to Delaware’s environment and vulnerable residents. Yet, DNREC has allowed this developer to shortcut much needed protections. The decision to allow the company to proceed in Sussex County runs afoul of the state’s responsibility to safeguard the health of Delaware’s climate, environment and people.”

Bioenergy Devco is planning to form an advisory committee for the project, aiming to incorporate feedback from community stakeholders.