- Agricultural technology company, EarthRenew (CSE:ERTH) has identified its first potential location in the United States, where it plans to conduct a feasibility study
- The site is a large feedlot in the southwestern US, one of the largest organic farming markets in the world
- EarthRenew believes that the site facility could produce over 70,000 tonnes of fertiliser pellets a year
- The company expects the feasibility study to cost C$50,000, and to take approximately two months to complete
- EarthRenew (ERTH) is down 8.86 per cent and is trading at 36 cents per share
Agricultural technology company, EarthRenew (CSE:ERTH) has identified its first potential location in the United States, where it plans to conduct a feasibility study.
The site is located in the southwestern US, one of the largest organic farming markets in the world. Specifically, the site is one of the region’s largest feedlots, which fattens over 200,000 cattle every year.
EarthRenew believes the site can offer a facility up to four times the size of its facility in Strathmore, Alberta. At such a scale, EarthRenew estimates the facility could produce over 70,000 tonnes of fertiliser pellets a year.
The proposed facility would have an estimated capital cost of C$37 million to $42 million.
With such an endeavour in mind, the company and the potential feedlot partner will collaborate to conduct a feasibility study. In addition to reviewing the site, the study will assess the regulatory environment, requisite utility availability, engineering considerations, and the local organic fertiliser market.
If successful, the feasibility study will also develop key terms for a letter of intent between EarthRenew and the feedlot partner. Such terms might include terms for lease and shared services, parameters for feedstock delivery, co-marketing of products, and potential electricity sales for the feedlot’s electric fences.
EarthRenew expects that the feasibility study will cost $50,000, and take approximately two months to complete. The company’s CEO, Keith Driver, said the company is excited to begin formally evaluating new facility locations.
“Our potential partner is very aligned with our sustainability goals, and is excited for us to become a solution for their manure production.
“This new facility could potentially produce three-to-four times what our Strathmore facility is capable of, and provide us with a beachhead opportunity to serve the vast southwestern US market,” he said.
EarthRenew (ERTH) is down 8.86 per cent and is trading at 36 cents per share at 2:24pm EDT.