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 sector. The company operates through its wholly owned subsidiaries to process source separated organics in anaerobic digesters, maximize digester capacity, and convert organic waste into biogas, renewable gas, electricity, organic compost and liquid fertilizer. Its core activities include diverting organic waste from landfills, reducing greenhouse gas emissions, and producing market ready recycled products.

Revenue is generated primarily from tipping fees charged to municipalities and haulers for accepting source separated organics and other non hazardous waste at the company’s facilities, from the sale of regenerative products such as organic dry compost and, in the future, organic liquid fertilizer, and from the sale of carbon credits produced by the Belleville facility. Customers include municipal waste programs, private haulers and, for the fertilizer products, agricultural, wine, cannabis and lawn and garden markets.

The company operates through the following segments.

• Environmental Compliance Approvals: This segment involves holding and managing the environmental approvals that allow the company to accept up to 70,000 metric tonnes of waste annually from Ontario, Quebec, and New York State and to operate a waste transfer station.

• Waste Transfer Station: This segment provides a facility for haulers to deposit waste, charging tipping fees based on waste type, weight, distance to disposal site, and prevailing market rates.

• Organic Composting Facility: This segment operates the company’s composting plant in Belleville, Ontario, which processes source separated organics to produce biogas, renewable gas, electricity, organic compost, and liquid fertilizer.

Within the waste to energy and regenerative products industry, SusGlobal Energy Corp. occupies a niche as a smaller scale, technology focused player competing against larger, well established waste management firms that benefit from greater financial resources and longer operating histories. The company’s competitive advantages lie in its proprietary anaerobic digestion and thermophilic processes, its portfolio of environmental compliance approvals, and its ability to convert organic waste into multiple revenue streams such as biogas, carbon credits and organic fertilizers. These strengths enable the company to offer lower wholesale costs and to serve municipalities seeking sustainable waste solutions.

The company’s customers are primarily municipalities in both rural and urban centers of Ontario, Canada, that deliver source separated organics through green bin programs, as well as private haulers who use its waste transfer station. In addition, the company sells its regenerative products to agricultural operations, wine producers, cannabis cultivators, and lawn and garden retailers seeking organic soil amendments and fertilizers.