SusGlobal Energy — Recycling In The Circular Economy?

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The circular economy is a concept that decouples economic activity from the consumption of finite resources. Or, as this European Parliament document states, it’s a model of production and consumption that involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products for as long as possible.

Many industries operate their own versions of the circular economy in an era of increasingly finite resources and supply chain hiccups. And one company in the waste industry says it relies totally on the circular economy; its feedstock is the very material it uses to produce regenerative products such as organic fertilizers.

Toronto-based SusGlobal Energy Corp. SNRG reports that it operates by using organic waste from municipalities and other sources and turning that waste into organic products as Leaders in the Circular Economy, its registered trademark. The company’s resulting fertilizers are available in major home improvement retailers such as Lowe’s Cos. Inc. LOW and Home Depot Inc. HD.

The closed-loop system theoretically avoids the need to use finite resources. There’s also no need to stare anxiously down the supply chain to see where feedstock may be coming from.

“What's important to note is that we don't have any issues with the supply chain problem because we use our own feedstock, which is the high volumes of municipal, industrial and commercial organic waste streams that we take in to produce our products,” SusGlobal Founder, CEO and Chairman Marc Hazout said in a recent interview featured on Yahoo Finance.

Expanding Organically And Through Acquisition?

SusGlobal is now operating a second facility in Hamilton, Ontario. That facility, which is expected to add significantly to the company’s revenue, builds on its original location in Belleville, Ontario as part of the company’s regional strategy model.

To emphasize the company’s relatively easy access to feedstock, SusGlobal is banking on what it calls a new “lucrative” contract with a larger municipality which is trying to improve its treatment of organic waste. The contract will reportedly help SusGlobal boost its current operating level from 25% at the Belleville location to close to the facility’s capacity of 120,000 metric tons by the end of 2022.

The organic fertilizer market is expected to register a compound annual growth rate of 11.2 % by 2026. Part of the growth is the result of organic products acting as an alternative to synthetic fertilizers that can damage the soil and human health as a result. 

SusGlobal believes it is positioning itself to take on the challenges of recycling organic waste, not only through its own organic growth but also through acquisition. This year, the company says its focus includes strategic acquisitions as well as an uplist to the Nasdaq Stock Exchange.

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Photo by Pawel Czerwinski on Unsplash