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Be the first with the news that moves the market- Xebec Adsorption (TSXV:XBC) has signed a letter of intent to secure a multi-million dollar landfill gas installation contract
- Signed on June 5, 2020, with a large-scale North American waste management company, the deal will convert an existing landfill gas project to a cleaner RNG facility
- The agreement is expected to join the company’s backlog of work, with system delivery anticipated in 2021
- RNG projects have grown in popularity over recent years, as Canada looks to bolster its fight against climate change
- Xebec Adsorption (XBC) is currently down 0.25 per cent and is trading at C$3.95 per share at 11:33am EDT
Xebec Adsorption (TSXV:XBC) has signed a letter of intent to secure a multi-million dollar landfill gas installation contract.
Signed on June 5, 2020, with a large-scale North American waste management company, the deal will convert an existing landfill gas project to a cleaner RNG facility.
In addition to the landfill project, Xebec Adsorption has secured a number of hydrogen purification orders to produce cost-effective hydrogen for use in fuel cells.
This, in combination with the landfill deal and an Alberta RNG Project announced earlier this month, is expected to be worth approximately C$11.9 million.
The landfill project is expected to transition to the company’s backlog of work in the next few months, with system delivery anticipated in 2021.
Canada has seen a strong uptick in the popularity of RNG projects over the last few years, driven by an increased emphasis in the country’s efforts to combat climate change.
As a result, Xebec launched an investment fund with Fonds de solidarité FTQ on June 1, which will aim to capitalise on the burgeoning industry and support further developments. Once fully capitalised, the fund, GNR Québec Capital LP, is expected to finance 12 to 15 renewable gas projects in Canada.
Prabhu Rao, Chief Operating Officer of Xebec Adsorption, said he is excited to be working on another landfill project with a new customer in the waste management industry.
“Our offering is compelling to waste management customers because we have the capabilities to do all the engineering inhouse, have the best in class technology to upgrade landfill gas to pipeline specification, and have a solid track record with previous landfill projects.
“This LOI and the recent partnership we announced with the Fonds de solidarité FTQ to invest in renewable natural gas projects, are important developments within the industry as we start to see RNG infrastructure roll out,” he said.
Xebec Adsorption (XBC) is down 0.25 per cent and is trading at $3.95 per share at 11:33am EDT.
