The Making of a Monster: the Greasezilla, BP story

Imagine if you will a gigantic beast made entirely from trap grease, woken from its slumber by climate change, who wreaks vengeance on the wasteful wasters of western civilization. I can hear its terrible, terrifying cries:

I ZAP your waste grease. I POWER the world on your leave-behinds. Your trash is my UNSTOPPABLE ENERGY SOURCE. BOW BEFORE ME, you who are wedded to the culture of dumping grease into sewers and landfills. 

That’s how I imagine the film GREASEZILLA, if ever one was made. 

For now, we have the company Greasezilla, known to mere mortals as Downey Ridge Environmental, which has snagged a massive partnership with BP and is well on the way to revolutionize brown grease collection and its availability as a renewable energy feedstock. It’s only a shocker if you have not been working in an economic development capacity in places like Virginia, Florida, Louisiana, Texas, and New England, where Greasezilla sites have been popping up faster than, well, than pop-ups. 

The monster tech is all Greasezilla, but it’s been pushed through that well-known but little-used particle accelerator known as BP strategic investment, and the company is growing as fast as Gojira. 

Last year was purty darn good, too

In 2023 we reported on new projects in Albany and at HRSD in Virginia, and a system in Wareham, MA. Plus, the creation of Greasezilla Fuel to manage the sale of brown grease on behalf of Greasezilla clients. 

We last looked at Greasezilla in depth in 2022. Then, the company had doubled the number of sites in a year. They were completing plans for a public-private joint venture in Texas and installations at several wastewater treatment facilities, including sites in Maryland and upstate New York. 

In addition to Greasezilla’s 2022 announcements, they had quite a few notable achievements in 2021 which included new Installations in Los Angeles, Cincinnati, Jacksonville, New Orleans, and Chicago. Plus, $8 million in investment support from Sheltowee Cleantech Fund to finance ten new Greasezilla FOG receiving stations across the country.

OK, so why Greasezilla, why now?

At the heart is the growing crisis of FOG Waste: Fats, oils, and grease waste from commercial kitchens is a growing problem, especially in densely populated areas. Landfills are increasingly refusing this waste, and traditional disposal methods like land application are becoming restricted.

The Scale of the Problem

Each person in the US generates approximately 5 gallons of brown grease annually, resulting in over a billion gallons of brown grease nationwide. 

The haulers who are running around with vac trucks emptying these grease traps sometimes have to drive hours just to discharge their vehicles,” Greasezilla EVP Brian Levine told us. “If you’re not picking it up from the restaurants, it’s going down the drain and it’s hitting you right into the head works of your plant.” 

The Tech

If you aren’t already familiar with the tech, it passes what you might call the East Test for Growing a Bioeconomy. The technology is eco-friendly, affordable, scalable and turn-key. Specifically, Greasezilla’s patented technology can be used for complete separation and dewatering of brown grease, providing a purely ecological sound alternative to chemically treating, lagooning, landfilling, incineration or dumping FOG waste.

It’s the Water, and a Lot More

One of the big problems that separates the world of brown grease from yellow grease, it’s de=-watering. “Our objective is to remove 99% of the water from the brown grease and remove 99% of the grease from the water,” Greasezilla EVP Brian Levine told The Digest.

The BP Partnership

BP’s capital infusion has significantly bolstered Greasezilla’s capacity to expand its operations. Before the partnership, Greasezilla primarily focused on selling equipment. With BP’s investment, they can now build and operate their own FOG processing facilities. This financial support enables Greasezilla to undertake projects with a capital expenditure of approximately $5 million per site, a scale they likely couldn’t achieve independently.

“The big boys are entrenched in our society, they’re entrenched in our renewable strategies, and really, we’re lucky in some ways, that brown grease being a waste product, carries the incentives that make it so lucrative and appealing to the energy giants,” Levine added.

Outline of a typical Greasezilla project

Capex. Greasezilla is able to build sites in the neighborhood of $5 million of CapEx.

Size and Infrastructure. When looking for potential sites for Greasezilla, the sources mention that the ideal size is around 20 to 40,000 square feet,  the location should be on the outskirts of major cities, near major arteries, and in heavy industrial zones with access to the city. In describing projects to the Digest, Greasezilla highlighted the importance of access to 480 3-phase power, a sewer connection, and the option to use natural gas as essential infrastructure requirements.

Timeline. Traditionally, securing funding from a city for a project like Greasezilla could take 3 to 5 years due to the extensive processes involved. Now, with investor involvement, Greasezilla is now able to expedite projects and complete them within 6 months.

Volumes. Greasezilla aims to process large volumes of FOG at each site.  Ideally, they look for locations where they can receive 10 trucks per day, 50,000 gallons of FOG per day, and upwards of 10 million gallons of FOG per year.

Notes on the BP Partnership

● Accelerated Project Timelines: BP’s involvement streamlines the process of establishing Greasezilla facilities. Securing funding for such projects through traditional municipal channels often involves lengthy bureaucratic procedures, potentially taking 3 to 5 years. However, Greasezilla’s partnership with BP allows them to bypass these delays and complete projects within 6 months. This accelerated timeline makes Greasezilla a more attractive option for cities seeking efficient and timely solutions for FOG management.

● Shared Risk and Responsibility: BP shares both the capital expenditure (CapEx) and operating expense (OPEX) risks associated with Greasezilla projects.

● First Rights to Brown Grease: BP holds the primary offtake agreement for the brown grease produced by Greasezilla systems. While BP isn’t the exclusive buyer, they have the “first look and last look” at the material, making them the preferred recipient.

● Expanding Global Reach and Opportunities: The partnership with BP extends beyond mere financial backing; it opens doors to a broader global network. For example, BP is facilitating collaborations between Greasezilla and companies like Veolia in Australia, expanding Greasezilla’s reach and potential market.

● Alignment with BP’s Sustainability Goals: BP’s investment in Greasezilla aligns with its broader strategic shift toward sustainable energy solutions. By supporting a company that transforms waste into biofuel, BP demonstrates its commitment to diversifying its energy portfolio and reducing its environmental footprint. BP’s involvement goes beyond direct investment, bringing credibility and access to new markets. Their strong presence in regions like Texas and Ohio could pave the way for Greasezilla’s expansion into these areas.

Greasezilla and cities

Greasezilla actively seeks out partnerships with cities to address FOG (fats, oils, and grease) disposal challenges.  First, they target cities with existing FOG regulations and infrastructure. They prioritize working with cities that already have regulations in place for grease trap waste management from businesses. 

Greasezilla often co-locates its facilities on city property, particularly near wastewater treatment plants.  This approach offers several advantages:

○ Reduced land acquisition costs

○ Simplified permitting and regulatory processes

○ Direct access to wastewater treatment facilities

○ Potential for collaborative initiatives, such as using the treated water for irrigation or composting.

Greasezilla assists cities in establishing FOG receiving programs. In situations where cities lack the infrastructure or resources to receive and process FOG from haulers, Greasezilla offers its expertise and technology to help them set up these programs.

Greasezilla’s financial model, backed by BP, makes it easier for cities to adopt their technology. Cities typically face lengthy processes and budgetary constraints when investing in large infrastructure projects. Greasezilla’s ability to secure funding from BP allows them to offer cities a quicker and more flexible approach, handling both the capital and operating expenses of the project. This can significantly reduce the financial burden on cities and shorten project timelines.

The Bottom Line

Think in terms of capex of around $10 per actual gallon of fuel intermediate recovered. Now, eliminate the feedstock opex cost, and you are left with an incredibly low-cost source. Without knowing the exact local opex costs, it’s impossible to say exactly whether this model produces energy cheaper than utility-scale PV, but I would reckon it as “close”, based on some back on the envelope calculations which some member of the The Due Diligence Wolfpack will surely correct me on.

So, I’m sorely tempted to title this column, “The One that Beats Solar”, but a little more math from a math expert is required. Instead, let me highlight this as “The One that put the Beyond Petroleum Back into BP”, and leave it there for now.