At a special meeting on May 21, the Holbrook City Council held the first reading of Ordinance 25-05, which would authorize a lease agreement between the city and Jay Foster on behalf of Carbon Utility. The ordinance allows the company to lease city-owned land at the former recycling yard for a light industrial operation.
Carbon Utility plans to place specially designed shipping containers on the 0.62-acre parcel to support a startup that will produce carbon dioxide, hydrogen and methanol. According to the company’s website, “Our proprietary technology converts CO2 and green hydrogen (H2) into high value products like industrial gases, renewable fuels and advanced materials.”
The process occurs in a containerized system, which is being shipped from the United Kingdom, is expected to arrive in Holbrook in early June. Assistant City Manager Randy Sullivan noted in a memo to council that the site had been toured and deemed suitable by the company. Both Jay and Allen Foster have reviewed and agreed to the terms of the lease.
Under the proposed agreement, Carbon Utility would pay $1,200 for the first year of the lease, with the rate increasing to $3,500 per year for each of the following four years. The initial lease term is five years. If the company does not establish and operate its business during any two-year period of the lease, the city reserves the right to terminate the agreement with 30 days’ notice.
The lease outlines detailed requirements around environmental compliance, construction oversight, insurance coverage, permitted uses, and maintenance responsibilities. Any structures or improvements made on the site must be pre-approved by the city and will revert to city ownership at the end of the lease. The city retains the right to substitute comparable space if the land is later needed for public purposes.
The first reading does not finalize the lease. A second reading and council vote are expected at a future meeting. The lease is expected to be finalized at the regular meeting scheduled for May 28.
