BioHiTech Global acquires minority interest in US’ ‘first’ MBT municipal solid waste resource recovery facility
BioHiTech Global, a US waste management technology company, has announced that it acquired a 17.2% equity interest in the nation's first resource recovery facility utilising a proprietary mechanical biological treatment (MBT) technology for the disposal and recycling of mixed municipal solid waste (MSW).
BioHiTech, through its interest in Apple Valley Waste Conversions, has the exclusive development rights for this technology in eleven states in the northeast US and the District of Columbia.
The waste-to-solid fuel plant which utilises a patented process developed by Entsorgafin, an Italian engineering firm, is currently under construction in Martinsburg, West Virginia, and is expected to begin commissioning in Q4 2017.
Once complete, the facility is being partially financed with a $25 million tax-exempt bond issued by the West Virginia Economic Development Authority.
The facility will receive MSW through a ten-year contract with a regional waste hauler, 40-50% of which, will be converted into a clean burning EPA approved alternative fuel (solid recovered fuel or SRF) through the patented MBT process.
The facility has also entered into a ten-year contract for the sale of the SRF with a privately held company in West Virginia that intends to use the SRF as an approved supplement to fossil fuels in the production of cement.
With approximately 80% of the incoming waste being diverted from landfills, the company estimates the reduction in landfill waste disposal will result in a greenhouse gas (GHG) emission reduction of 28,000 tonnes per year of carbon dioxide (or carbon dioxide equivalent).
BioHiTech acquired the 17.2% interest in Enstorga West Virginia, a privately held holding company that owns the facility, in exchange for a cash payment of $1,034,000 and has an option to acquire an additional 22.8% for approximately $1.4m. The company sold a series of convertible notes to fund the acquisition.
"We continue to focus on the application of proven, cost-effective and disruptive technologies to traditional waste management," said BioHiTech Global CEO Frank E. Celli.
He added: "As more and more companies target 'Zero Waste' initiatives and state governments continue to implement regulations to foster more environmental responsibility, we are driving cost effective solutions into the marketplace.
“Our goal is to make doing the right thing also a smart business decision. Unlike other "clean tech" solutions, Entsorga's technology does not require government subsidies or additional premiums for waste disposal.
“We expect this facility to have a positive impact on our financials beginning in 2018, and plan to use it as a showcase to demonstrate to businesses and municipalities that there is an economically feasible clean alternative for organic and inorganic waste disposal. With this facility commencing operations later this year and with the development rights for this technology in other states, we are poised to enter into a new phase of growth at BioHiTech to build lasting value for our stockholders for years to come."
This story was written by Liz Gyekye, editor of Bioenergy Insight.