Xebec Announces Quebec Renewable Natural Gas Project
Xebec Adsorption (TSXV: XBC) this morning announced that it will be working with Bähler Biogas to construct a new facility in Quebec for production of renewable natural gas and biofertilizer.
Anticipated to see commissioning occur in early 2021, the facility is expected to be capable of processing up to 45,000 metric tons of organic waste per year via an anaerobic digestion process. The process will enable the plant to convert the organic waste to what is referred to as renewable natural gas (RNG) as well as biofertilizer thanks to the technology being implemented by Xebec. The plant is expected to be able to produce up to 150,000 gigajoules of RNG and 7,500 metric tons of biofertilizer annually as a result.
The project itself is stated to have a budget of approximately $28 million, which will be financed through a combination of equity, non-recourse debt, and via the Quebec government via a potential grant.
The renewable natural gas is expected to have a 20 year off-take agreement at a fixed rate, while the biofertilizer is expected to be sold to nearby agricultural operations via a management partner.
It is great to finally see our first BOO project move forward. It showcases how local partners can come together to create a community-based sustainable waste solution for a true circular economy. Renewable natural gas presents a unique opportunity to both divert organic waste from landfills and produce a valuable source of clean energy to displace fossil natural gas and create a biofertilizer for farmers. Xebec plans to be a valuable technology provider and financial partner in the waste-to-RNG space in Canada.
Kurt Sorschak, President and CEO, Xebec Adsorption Inc.
Xebec Adsorption last traded at $3.96 on the TSX Venture.
Information for this briefing was found via Sedar and Xebec Adsorption. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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