Turning Waste into Profit
This EarthRenew Inc. Profile is part of a paid investor education campaign*
EarthRenew Inc. (CSE:ERTH) transforms livestock waste into a high-performance organic fertilizer to be used by organic and traditional growers in Canada and the United States. Located on a 25,000 head cattle feedlot, our flagship Strathmore plant is capable of producing up to four megawatts (MW) per hour of low-cost electricity powered by a natural gas fired turbine. The exhausted heat from the turbine is used to convert manure into certified organic fertilizer.
Currently the company is focused on exploring ways to add value to its fertilizer base products. In April 2020 EarthRenew announced a partnership with CCm Technologies to develop and test new organic fertilizer product formulations. Using EarthRenew’s feedstock as a base, CCm has been able to produce a 7-1.7-2.2 NPK ratio organic fertilizer product. Moving forward EarthRenew intends to incorporate CCm’s technology into its own process in order to continue to enhance its end products. New formulations can provide several benefits, namely the ability to service a broader range of crops.
The market for pelleted organic fertilizers is growing fast. There are currently 2.7 million organic food producers growing on 142.8 million acres worldwide. The largest market for organic agriculture products in 2016 was the US (US$38.5 billion). To accelerate market adoption, EarthRenew is developing partnerships and reseller agreements with companies like SurVerda and BiocharNow in the US.
EarthRenew is currently working with a partner to develop its first potential feedlot located in the United States. The facility currently finishes over 200,000 head of cattle per year, making it one of the largest feedlots in the southwestern US. EarthRenew believes the facility is in a strategically-optimal location, with the potential to become its flagship operation, as estimates suggest the new facility could be four times larger than EarthRenew’s Strathmore facility. According to the initial agreement between EarthRenew and its potential partner, both parties will work together to conduct a feasibility study on the property, covering a review of the site, the availability of requisite utilities, the regulatory environment, preliminary engineering considerations and details of the organic fertilizer market to determine overall viability.
- The current facility in Strathmore is being redeveloped at commercial scale – which EarthRenew anticipates will be operational at the end of Q4 2020.
- We are conducting field trials on new formulations with Olds and Lethbridge College to validate historical results and identify formulations for the 2021 grow season.
- EarthRenew has completed testing of its product with CCm Technologies and hopes to use CCm’s technology to increase the nutrient content of its blends.
- EarthRenew has started preliminary discussions with a potential partner for a 200,000 cattle feedlot facility in the southwestern US
- Initial estimates suggest the southwestern US feedlot facility could be four times larger than EarthRenew’s Strathmore, Alberta facility
EarthRenew expects to commercially launch its value-added products in spring 2021, in time for the start of the growing cycle. Due to the cyclical nature of a growing season, this launch date is expected to generate more revenue as most agriculture-based industries look for their fertilizers, seeds and soils at this time
EarthRenew’s Company Highlights
- The organic fertilizer market is expected to reach US$11.16 billion by 2022.
- EarthRenew’s fertilizer products are listed as organic in the US and Canada.
- The company distributes its products in Canada and the US through Sun Country Farms.
- Secured a partnership with CCm Technologies to develop and test new organic fertilizer product formulations
- Partnership with Olds College to initiate plot field trials to test yield and soil health characteristics related to its organic fertilizer formulations
- Partnership with Lethbridge College to begin greenhouse field trials to test germination rate influence of its organic fertilizer formulations
- Product commercialization is expected to hit the market in time for the growing season in spring 2021.
- EarthRenew owns a fertilizer production facility near Strathmore, Alberta.
- The production facility has an industrial-sized natural gas turbine that can provide additional revenue to the company.
- EarthRenew plans to sell its surplus electricity to the Alberta electricity market as well as sign power offtake agreements to cryptocurrency mining operations.
The Organic Fertilizer Market
The organic fertilizer market is expected to reach US$11.16 billion by 2022, according to a report by Markets and Markets. Organic fertilizers are synthetically produced. They are based on the by-products of crude oil refining and other mined, naturally-occurring minerals to replenish the soil and have a positive impact on crop quality and yield.
According to the 2019 report from The World of Organic Agriculture, there are 2.9 million acres of organic farmland in Canada and 170.3 million acres of organic farmland across 181 countries. Global industry sales are expected to generate more than US$80 billion Annually. Canada’s total organic market reached $5.4 billion in 2017, up from $3.5 billion in 2012 with a compound growth rate of 8.7 percent.
Within Canada, 3.3 million acres of land has been organically certified across the company, and 1.8 million acres of that is centred in western Canada. The market for organic fertilizers is estimated to be approximately C$120 million.
EarthRenew’s Strathmore Facility
EarthRenew’s fertilizer production plant is located on a 25,000 head lot near Strathmore, Alberta. The plant uses heat from a natural gas turbine to thermally process organic waste materials to produce a concentrated high-value certified organic fertilizer. The plant uses a modular design that allows the company to quickly scale and roll-out its plants across North America and Europe.
EarthRenew’s commercialization strategy is already underway. The first phase was focused on getting the power generation asset online, and completing the engineering and marketing studies. With completion of the first phase, the second is focused on maximizing the value of organic fertilizer production at the Strathmore facility.
Products and Product Innovation
EarthRenew is developing a suite of products that are listed for organic farming in Canada and the US under the current formulas. The formulas are suitable for large scale organic, commercial agriculture.
EarthRenew has partnered with Symbiotic Envirotek Inc. and Cattleland Feedyards to further leverage the value of its power production asset. Symbiotic is working with EarthRenew to pilot its waste-to-algae technology, which scrubs carbon dioxide emissions from the Strathmore site and utilizes this carbon dioxide to support commercial algae growth.
After receiving the results of the Strathmore facility feasibility study, Earth Renew has turned its attention to boosting the nitrogen content of their base product. EarthRenew has partnered with CCm, a United Kingdom-based company to develop and test in this regard. Using EarthRenew’s organic fertilizer as a base, CCm’s process upgraded EarthRenew fertilizer from a 1.8-1-1.6 nitrogen, phosphorus, potassium (“NPK”) ratio to a 7-1.7-2.2 NPK ratio. The higher nitrogen content of the upgraded 7-1.7-2.2 NPK organic fertilizer product has the potential to deliver up to 4 times higher value for farmers.
Following the improvements to its fertilizer products, EarthRenew plans to conduct field trials this spring with organic farmers across western Canada. The company released a plan to begin field testing with Olds College and to begin plot tests with Lethbridge College at the start of this growing season – results will be expected at the end of this growing season.
EarthRenew’s Partnerships and Agreements
EarthRenew has signed a five-year power purchase agreement with BTF Blockchain Inc., a company focused on mining cryptocurrencies, for three megawatts of power at its Strathmore facility. The company intends to start selling electricity to BTF Blockchain in Q4 2019. The price of power is set at a floor price and can float with the market price, allowing EarthRenew to fully capitalize on the revenue generation potential of the plant.
Under the terms of the agreement, EarthRenew has the right to sell to the electricity grid when power prices set by the Alberta Electrical System Operator exceed $0.065 per kilowatt-hour. This allows EarthRenew to continue to make money during periods of peak pricing in the deregulated Alberta electricity market. The agreement also enables EarthRenew to operate the turbine at its facility continually.
Sun Country Farms
EarthRenew has an off-take agreement for its fertilizer products in place with Sun Country Farms. EarthRenew delivers its fertilizer products to Sun Country Farms, who in turn, distribute those products throughout its distribution system in Canada and the US.
In January of 2020 EarthRenew first sent samples to CCm to investigate the potential for the company’s award-winning carbon capture and utilization technology to improve the nutrient profile of EarthRenew’s products. Using EarthRenew’s feedstock as a base, CCm has able to produce a 7-1.7-2.2 NPK ratio organic fertilizer product.
In April 2020 EarthRenew announced a partnership with CCm Technologies to continue to develop and test new organic fertilizer formulations using EarthRenew’s organic fertilizer as a base. Moving forward, EarthRenew CEO Keith Driver is optimistic the company’s partnership with CCm has the potential to differentiate its product from others in the organic sector. “The resulting EarthRenew fertilizer product has a nitrogen-phosphorus-potassium (NPK) ratio of 7:1:2 and there are just not a lot of other products in the organic space that can get up into the sevens in terms of nitrogen,” said Driver in an interview with the Investing News Network.
In April 2020 EarthRenew announced a pair of partnerships with Canadian colleges, Olds College and Lethbridge College. Both partnerships are designed to conduct trials using EarthRenew’s organic fertilizer formulations. Field study results are expected to be used to validate the benefits of EarthRenew’s products while creating improved organic fertilizer formulations for commercialization.
Olds College is expected to initiate plot field trials to test yield and soil health characteristics related to its organic fertilizer formulations. Lethbridge College, on the other hand, is expected to conduct greenhouse field trials to test the germination rate influence of its organic fertilizer formulations.
US Feedlot Feasibility Study
In June 2020 EarthRenew announced it is working with a potential partner to conduct a feasibility study on its first potential feedlot in the United States. The facility currently finishes over 200,000 head of cattle per year, making it one of the largest feedlots in the southwestern US. The goal of the initial feasibility study is for both partners to establish terms for a potential letter of intent (LOI) moving forward.
EarthRenew believes the facility is in an excellent location, with the potential to become the company’s flagship operation. As per the initial agreement between EarthRenew and its potential partner, both parties are expected to work together to conduct a feasibility study on the property, covering a review of the site, the availability of requisite utilities, the regulatory environment, preliminary engineering considerations and details of the organic fertilizer market to determine overall viability.
EarthRenew’s Management Team
Keith Driver — CEO and Director
Keith Driver has served in leadership positions in several environmental technology companies over the past 15 years. His experience includes senior marketing, technical and management roles, focused on emerging products or technologies. Many of these opportunities have focused on processing organic feedstocks and marketing the end-products, such as compost and biochar. Driver holds two degrees in engineering and an MBA, and serves as a sessional instructor at the University of Calgary.
Ryan Ptolemy — VP Finance
Ryan Ptolemy is a CPA, CGA and CFA charter holder and obtained a B.A. from Western University. He serves as CFO to a number of public and private companies in the resource sector, particularly development stage companies. Ptolemy formerly served as CFO for an independent investment dealer in Toronto where he was responsible for financial reporting, auditing, budgeting and internal controls.
Bill Nylen — Plant Manager
Bill Nylen has held several management positions with various environmental technology companies in southern Alberta and has been instrumental in the plant development and operations at the EarthRenew site since 2007. Nylen studied at the Southern Alberta Institute of Technology and holds a compliment of safety certificates including the designation of Radiation Safety Officer.
Catherine Stretch — Director
Catherine Stretch is the President of Aguia Resources Ltd., a phosphate asset under development in Brazil. She has over 15 years of capital markets experience, overseeing early-stage resource investment and project development in North America, South America and Asia with a focus on fertilizers and agriculture.
Chris Best — Director
Chris Best has over 25 years of experience in the energy sector. He has held a variety of positions in integrated oil and gas companies, pipelines, utilities, energy marketers and independent power producers. He has experience in accounting, credit, counter-party risk, environmental policy, forecasting, marketing, business development, trading and operations groups. He holds a B.Comm. degree in Finance from the University of Calgary, Faculty of Management, Haskayne School of Business.
This profile is sponsored by EarthRenew Inc. (CSE:ERTH). This profile provides information which was sourced by the Investing News Network (INN) and approved by EarthRenew Inc., in order to help investors learn more about the company. EarthRenew Inc. is a client of INN. The company’s campaign fees pay for INN to create and update this profile.
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The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with EarthRenew Inc. and seek advice from a qualified investment advisor.