SusGlobal Energy Corp. (OTC: SNRG)

SusGlobal Energy Corp. is a renewables company focused on acquiring, developing, and monetizing a global portfolio of proprietary technologies in the waste-to-energy and regenerative products application. The company operates in the renewable energy sector, specifically targeting the management of organic waste and its conversion into valuable end products. SusGlobal's core business activities revolve around the acquisition and development of technologies that process source-separated organics (SSO) in anaerobic digesters, maximize the capacity of existing infrastructure to increase biogas yield, and convert SSO and digestate into organic compost or pathogen-free organic liquid fertilizer.

SusGlobal generates revenue through several key activities. The company charges tipping fees for waste accepted at its organic waste composting facility, based on arrangements with customers and the type of waste accepted. Typical waste includes SSO, leaf and yard waste, food waste, liquid waste, paper sludge, and biosolids. Additionally, SusGlobal generates revenue from the sale of regenerative products such as organic dry compost and, in the future, organic liquid fertilizer. The company also sells carbon credits generated by its Belleville Facility. The primary customer base consists of municipalities in both rural and urban centers in Ontario, Canada, which are looking to divert organic waste from landfills and reduce greenhouse gas emissions.

• Environmental Compliance Approvals: SusGlobal owns Environmental Compliance Approvals (ECAs) issued by the Ministry of the Environment, Conservation and Parks (MECP) from the Province of Ontario. These approvals allow the company to accept up to 70,000 metric tonnes (MT) of waste annually from the provinces of Ontario, Quebec, and New York state, and to operate a waste transfer station with the capacity to process up to an additional 50,000 MT of waste annually. The company also owns ECAs for its Hamilton Facility, allowing it to accept up to 65,884 MT of waste annually from the province of Ontario. These ECAs are crucial for the company's operations and ensure compliance with environmental regulations.

• Waste Transfer Station: SusGlobal's waste transfer station is critical for haulers who collect waste in areas not in close proximity to disposal facilities. The company charges tipping fees based on the type and volume or weight of the waste deposited, the distance to the disposal site, market rates for disposal costs, and other general market factors. This segment is essential for managing waste streams efficiently and ensuring proper disposal practices.

• Organic Composting Facility: SusGlobal's organic waste processing and composting facility in Belleville, Ontario, has ECAs in place to accept up to 70,000 MT of waste annually. The facility is currently operational and charges tipping fees for the waste accepted. Typical waste accepted includes SSO, leaf and yard waste, food waste, liquid waste, paper sludge, and biosolids. The facility also generates carbon credits, which are sold to offset greenhouse gas emissions. The company plans to produce an organic liquid pathogen-free fertilizer at its Hamilton Facility to meet the growing demand in the market.

SusGlobal operates in a competitive industry with well-established players. However, the company believes its diverse product line, better efficiencies resulting in lower wholesale costs of sales, and direct store distribution model nationwide will open significant opportunities for growth. The company's competitive advantages include its expertise, proprietary processes, technologies, environmental compliance approvals, and permits to operate and process high volumes of organic waste streams. SusGlobal also owns registered trademarks such as SUSGLOBAL, CARING FOR EARTH'S JOURNEY, EARTH'S JOURNEY, and LEADERS IN THE CIRCULAR ECONOMY, which help protect its intellectual property and brand identity.

The company's customer base primarily consists of municipalities in Ontario, Canada, which are looking to divert organic waste from landfills and reduce greenhouse gas emissions. SusGlobal's services are essential for these municipalities to comply with environmental regulations and achieve their sustainability goals. The company's ability to process high volumes of organic waste and generate valuable end products makes it a key player in the renewable energy sector. As the global amount of organic waste continues to grow, SusGlobal is well-positioned to capitalize on the increasing demand for sustainable waste management solutions.