SusGlobal (SNRG) Buys New Production and Distribution Facility, Opening Doors for Municipal Contracts
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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
Waste management might not be your typical headline-grabber (and we’re not talking about Waste Management (NYSE: WM)) here, but when you don’t have a place to put your garbage, you’re going to sit up and pay attention. Cereal boxes are one thing, but a bag full of organic waste deepens the concern.
Companies like SusGlobal Energy Corp (OTCQB: SNRG) offer environmentally sensitive solutions you can bank on. SusGlobal is a renewables company focused on acquiring, developing, and monetizing waste-to-energy technologies worldwide. It transforms organic material into valuable end products such as biogas, liquid biofuels, compost and organic liquid fertilizers.
In turn, these products can be converted into electricity, fuels, fertilizers and sold to agricultural operations that are looking for an increase in crop yields, soil amendment, and environmentally sound practices. At the same time, the technology also diverts these materials from landfills and reduces greenhouse gas (GHG) emissions that result from landfilling organic wastes. In this way, SusGlobal Energy achieves the full lifecycle of organic material.
Through its wholly-owned subsidiary, SusGlobal Energy Canada I Ltd, the company opens the door to multiple new opportunities with a new site, a 40,535 square foot facility on 3.26 acres in Hamilton, Ontario. The facility provides additional production capacity as well as an Environmental Compliance Approval (ECA) to process 65,884 metric tonnes per year of organic waste, 24 hours a day, 7 days a week.
The new site serves the greater Toronto/Hamilton area (GTHA), the densest population in Canada, and joins SusGlobal’s 120,000-ton facility in Belleville, Ontario. The facility will produce, distribute and warehouse SusGro™ organic liquid fertilizer and other products for end-use to the wine, cannabis, and agriculture industries, and will sustain SusGlobal's continued innovative R&D.
“This acquisition exponentially increases SusGlobal's capacity for commercialization and distribution of our proprietary products, enabling us, we believe, to ramp up revenues and cash flows through fertilizer sales, tipping fees for intaking municipal organic waste, and carbon credits as Leaders in The Circular Economy," stated Marc Hazout, president and CEO of SusGlobal.
Moving Municipal
Municipalities across North America seek viable new options for processing organic wastes, and the new facility positions SusGlobal to capitalize on these lucrative contracts. Additionally, the close physical location of the 2 facilities — both within a 200-mile radius of Toronto — reduces the trucking carbon footprint. With the current political fervor for regulation on landfill new construction and licensing, the intrinsic value of SusGlobal’s current and newly acquired ECA enhances its prospects as a business entity and an investment opportunity.
CEO Hazout continued, explaining that “We are pleased to have taken ownership title of an additional facility with a high-value ECA, and [to be] strategically located to provide a contingency plan to our municipal clients that are already using our Belleville facility where we intake organic waste. Equally important is the Hamilton facility's proximity to agricultural clients who purchase our outbound products including liquid and dry organic fertilizers.”
By diverting organic waste from landfill sites to its facilities, SusGlobal minimizes harmful effects of the greenhouse gas emissions contributing to climate change. Even though it is an innovator in the waste management space, SusGlobal meets the definition of an essential municipal service with revenue streams that are less impacted by market conditions.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
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