- EarthRenew (ERTH) has released preliminary results regarding a potential site for its first facility in the United States
- The company’s feasibility study indicates no major regulatory barriers which would hinder EarthRenew’s prospective operations there
- The early results also estimate that permitting could take between 12 and 18 months
- The company will now work to finalise key terms for a letter of intent with the owner of the feedlot site
- EarthRenew (ERTH) remains unchanged and is currently trading at C$0.30 per share
EarthRenew (ERTH) has released preliminary results regarding a potential site for its first facility in the United States.
In June of this year, the company announced that it had identified a possible location for its first US site. The feedlot, located in the south-western US, could provide space for a facility up to four times bigger than EarthRenew’s Strathmore facility.
In its announcement, the company said that it would spend approximately two months conducting a feasibility study of the feedlot. The first results of that ongoing feasibility study have now become available, shedding light on the viability of the feedlot site.
The early results indicate no major regulatory barriers which would hinder EarthRenew from pursuing prospective operations there. Third-party consultants considered various factors, including the local county, air, and environmental and electricity permitting requirements.
Based on those considerations, permitting could take between 12 and 18 months.
Once the feasibility study is complete, EarthRenew will work to finalise key terms for a letter of intent with the owner of the feedlot site.
Terms will cover lease and shared services, and parameters for feedstock delivery and end-product co-marketing. The terms may also cover potential electricity sales for the feedlot’s electrified fences.
EarthRenew’s Director, Catherine Stretch, said that the early results of the company’s study are extremely encouraging.
“We know that different regulatory regimes can prove difficult, and understanding this process before we make the decision to move forward will definitely help streamline permitting and development.
“This key site could, in future, allow us to service key accounts in the south-western United States.
“We look forward to finalising our feasibility study, signing a letter of intent with the partner, and finishing preliminary engineering later this quarter,” she said.
EarthRenew (ERTH) remains unchanged and is trading at C$0.30 per share at 12:32pm EDT.