- EarthRenew initiates feasibility study to assess the viability of its first potential US location
- The partner’s site is one of the largest feedlots in the southwestern US
- The site is projected to provide EarthRenew with strategic access to the US Southwest, one of the largest organic markets in the world
- The partner is expected to be an active collaborator in the feasibility study
- The goal of the feasibility study is to develop the key terms for a letter of intent (LOI)
TORONTO, June 19, 2020 (GLOBE NEWSWIRE) — EarthRenew Inc. (CSE:ERTH | OTC:VVIVD | WKN:A2P6MB) (“EarthRenew” or the “Company”) is pleased to announce that it has identified its first potential site in the US. The site is one of the largest feedlots in the southwestern US, finishing over 200,000 head of cattle per year.
We believe that the site would provide the Company with a showcase facility in a strategic operational location, considering the southwestern US is the one of the world’s largest organic farming markets. The Company estimates that this site could be up to four times the size of EarthRenew’s Strathmore, Alberta facility with an estimated capital cost in the range of $37 to $42 million CAD. Further, EarthRenew estimates that it could produce over 70,000 tonnes per year of organic fertilizer pellets at a facility of this scale.
As per the terms of the initial engagement, EarthRenew will work with the potential partner to conduct a feasibility study. The feasibility study will cover, among other things, a review of the site, the availability of requisite utilities, the regulatory environment, preliminary engineering considerations and details of the organic fertilizer market to determine overall viability. The study is expected to take two months and cost $50,000 and will identify the key terms for an LOI between the Company and the potential partner. We anticipate key terms of the LOI will include: terms for lease and shared services, parameters for feedstock delivery and co-marketing of end-products and terms for potential electricity sales to the partner for its electrified fences.
“We are incredibly excited to formally begin evaluating new facility locations for EarthRenew. Our potential partner is very aligned with our sustainability goals and is excited for us to become a solution for their manure production,” said EarthRenew’s CEO, Keith Driver. Mr. Driver continued, “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.”