Completion of second facility on track and slated for Q4 2022 expected to generate, starting in 2023, an annual revenue run rate of US$113,000,000 (CA$145,000,000), based on 12,000 Metric Tonne of organic waste processing or 18.5% of Environmental Compliance Approval capacity in the first 12 months of processing
Increases capacity for commercialization and distribution of proprietary products to ramp revenues and cash flows in $200 billion fertilizer market
Second facility to develop and market greenhouse gas offset credits on the GHG CleanProjects® Registry
Current disruptions in fertilizer market further positions company for expansion in North America
Toronto, Ontario--(Newsfile Corp. - July 5, 2022) - SusGlobal Energy Corp. (OTCQB: SNRG) ("SUSGLOBAL" or the "Company"), the developer of SusGro™, an award winning, revolutionary pathogen free organic liquid fertilizer, today announced that its wholly-owned subsidiary, SusGlobal Energy Hamilton Ltd. ("SusGlobal Hamilton"), receives building permit No. 21 165172 00 I3 from the Planning and Economic Development Department Building Division City of Hamilton issued for a waste processing plant to convert organic waste to fertilizer and to continue the development of its 51,535 square foot facility on 3.26 acres (the "Property") located at 520 Nash Road North, in Hamilton, Ontario, which includes an Environmental Compliance Approval ("ECA") to process up to 65,884 metric tonnes per annum of organic waste into regenerative products as part of the Company's circular economy model and continued climate change initiatives.
SusGlobal Hamilton along with its architects and construction managers have progressed with the first phase of the facility which includes the process administration offices, processing and bottling plant, tipping building, distribution and warehousing sections of the facility.
The facility has been designed to produce, distribute and warehouse the Company's SusGro™ organic liquid fertilizer and other proprietary products that are provided under private label and sold through big box retailers, consumer lawn and garden suppliers and for end use to the wine, cannabis and agriculture industries.
With the addition of 11,000 square feet of corporate office space and R&D labs, the Hamilton facility will also house the continued development of SUSGLOBAL's proprietary formulations, branded liquid and dry organic fertilizers and aquaculture products that address environmental issues such as greenhouse gas emissions, soil health, and drought caused in part by agriculture that are increasingly affecting the ability to achieve yields necessary to feed a growing global population.
Synthetic chemicals are used extensively to boost yields and to prevent crop loss from pests and fungus. However, overuse of these chemicals is damaging soil health and breeding resistant pests, which is limiting long-term yield potential. SUSGLOBAL is developing technologies to replace existing practices with more environmentally friendly options.
The Hamilton facility will also house and distribute the products of the recently announced acquisition of a soil media, plant nutrients, and amendments producer. This yet to close acquisition is of an International Organization for Standardization ("ISO") accredited company which only sources the finest inputs in formulating their line of quality products that are sold to customers across Canada and the United States.
"We are pleased to have commenced construction at our second facility with a high-value Environmental Compliance Approval License and strategically located to provide a contingency plan to our municipal clients that are already using our Belleville facility where we intake organic waste and produce compost fertilizer. Equally important is the facility's proximity to agricultural clients who will purchase our outbound products including liquid and dry organic fertilizers and additional product lines carried by our acquisitions, which become wholly owned subsidiaries of SUSGLOBAL. This increased capacity, infrastructure, feedstock and licenses to scale up and meet the demand for all the existing and future product lines we have planned, without having to be reliant on any supply chain, enables us we believe to ramp up revenues and cash flows through fertilizer sales, tipping fees for intaking municipal organic waste, and monetization of carbon credits as Leaders in The Circular Economy®," stated Marc Hazout, President and CEO of SusGlobal.
About SusGlobal Energy Corp.
SusGlobal Energy Corp., the developer of SusGro™, an award winning and revolutionary pathogen free organic liquid fertilizer, is an industrial, environmental and agricultural biotechnology company focused on acquiring, developing, and monetizing a portfolio of proprietary technologies in the waste to energy and regenerative product applications globally. It is management's objective to grow SusGlobal into a significant sustainable waste to energy and regenerative products provider and a trusted brand for the fertilizer, soil and aquaculture market, as LEADERS IN THE CIRCULAR ECONOMY®. For more information, please visit the Company's website at: www.susglobalenergy.com
Safe Harbor Statement
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's objectives. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur.
Although we believe that the expectations reflected in these forward-looking statements such as (i) starting in 2023, an annual revenue run rate of US$113,000,000 (CA$145,000,000), based on 12,000 Metric Tonne of organic waste processing or 18.5% of Environmental Compliance Approval capacity in the first 12 months of processing, (ii) increased capacity of the Property enabling us to scale up and meet the demand for all the existing and future product lines we have planned which, in turn, will enable us to ramp up revenues and cash flows and (iii) our ability to process up to 65,884 metric tonnes per annum of organic waste into regenerative products are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to: lack of sufficient financial resources; variations in market conditions, currency and our stock price; the Company's ability to complete acquisitions pursuant to non-binding letters of intent; the Company's ability to obtain any necessary permits, approvals, consents or authorizations required for its activities; the Company's ability to produce energy, biogas, compost or organic liquid fertilizer from its properties successfully or profitably; the Company's ability to continue its projected growth, or to be fully able to implement its business strategies; and other risk factors described in the Company's filings with the U.S. Securities and Exchange Commission, which may be viewed at www.sec.gov.
SusGlobal Energy Corp.
Marc Hazout, President and CEO
(416) 223-8500 or Toll Free: 1-866-512-7374
SOURCE: SusGlobal Energy Corp.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/129927