Thinking Big And Green In 2022 — Organic Waste Recycling Gaining Steam?

Picture credit: Nareeta Martin on Unsplash

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One organic waste recycling company thinks that 2022 is likely to be a big year.

Not only is SusGlobal Energy Corp. SNRG aiming to uplist to the Nasdaq Stock Exchange, but it also reports that it is expanding its processes to make fuller use of its organic waste recycling locations.

The Toronto-based company’s original site is in Belleville, Ontario. It unveiled a new site in Hamilton, Ontario last August that is meant to significantly expand the company’s revenue.

Both sites are arguably key to the company’s mission of recycling organic waste from municipalities to create organic fertilizer and other regenerative products, thus avoiding the use of landfills as it creates new product lines.

The Belleville location began operations in 2017 and sits on 49 acres of company-owned land. SusGlobal is operating the site at 25% capacity but is aiming by the end of the year to reach a full processing capacity of 70,000 metric tons of municipal source-separated organics per annum.

Much of that depends on finalizing a “lucrative” contract with Toronto as authorities there aim for more environmentally friendly ways of dealing with the city's waste.

SusGlobal reports that the 70,000 metric tonnes figure can produce 25,000 metric tonnes of compost. In addition, the facility also has a 50,000 metric tonnes per annum waste transfer.

Revenue for the Belleville site is projected to grow from $14 million this year to $22 million in 2024.

New Site To Bring In The Dollars?

The Hamilton location is licensed to process almost 66,000 metric tons of organic waste. The facility comes with a 40,000-square-foot building the company says is ideal for producing its organic liquid fertilizer.

In terms of revenue projections, the Hamilton site might be somewhat of a game-changer. From a projected $247 million in 2023, revenue is expected to climb to $867 million in 2025.

And the company wants to expand on its core Canadian operations and use those as a model for processing waste in the United States, beginning with Florida and California by 2024. SusGlobal is also keeping an eye on Europe for possible licensing opportunities.

SusGlobal products are available at major retail stores such as those operated by Home Depot Inc. HD and Lowe’s Cos. Inc. LOW.

The fertilizer market was worth $196.9 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.2% from 2020 to 2026, the company says. The organic fertilizer market’s CAGR is estimated to be significantly higher at 11.2% by 2026.

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