The Santee facility has a combination of Ceramic Manufacturing, Co-generation in support of manufacturing needs, utilizing the Company's Combustion Research & Development System that is used for software development, emissions testing, and Operator training.
The Company anticipates that the electricity produced at the Facility from the Co-generation system will be used to operate the ceramic curing ovens and other manufacturing equipment, with the surplus sold to the local Utility on an "as available" basis under California Public Utility Commission Tariffs. This allows the use of the Facility as a true "cogeneration" unit for the manufacturing of ceramics for the Company's proprietary combustion units, at effectively one-third the cost for electricity. The Santee Facility will also be applying for certification under the State of California's Renewable Portfolio Standard.
All fuel for the Facility is expected to come from a radius of less than 10 miles. The Company believes that approximately 50,000 tons of suitable fuel material will be available for the Facility each year in this small radius. This fuel is typically from tree trimmings and clean wood sources. The fuel material can be delivered to the Facility as opposed to the surrounding landfills, allowing existing landfill space to be utilized for materials that are truly not recyclable, thereby extending the life of the landfills.