LONDON, June 18, 2020
- FN Media Group Presents Oilprice.com Market Commentary
LONDON, June 18, 2020 /PRNewswire/ -- The $150-billion organic food industry has a major fertilizer problem that could hinder its growth. Massive livestock operations from Europe to North America have an even bigger problem: They're producing catastrophic volumes of polluting waste they have nowhere to put, and it's a damage-control cost they have to deal with. The solution to both will have to come from the tech world, and that crossroads of opportunity where farming, fertilizer, and low carbon energy could finally meet. Mentioned in today's commentary includes: Tesla, Inc. (NASDAQ: TSLA), NextEra Energy, Inc. (NYSE: NEE), Enphase Energy, Inc. (NASDAQ: ENPH), TOTAL S.A. (NYSE: TOT), Suncor Energy Inc. (NYSE: SU).
One answer very well may come from a Canadian junior called EarthRenew (ERTH, VVIVD), which is now preparing to showcase a new, patented technology that helps solve both of these problems, while generating its own electricity along the way for added revenue. The patented technology turns livestock waste--a critical environmental problem--into a new organic fertilizer that hopes to change the game for the flourishing, $150-billion organic farming industry.
That alone would be fantastic, but EarthRenew also plans to use the waste heat from its electricity production using natural gas to generate more electricity. That electricity is then used in its own fertilizer operations, with the surplus intended to be sold to the grid in an additional revenue stream. In fact, in January alone, EarthRenew raked in $100,000 just selling natural gas fired power to Alberta's grid.
That makes this a low-cost operation: They are producing their own electricity, and most of the raw material for their patented new fertilizer process is free for the picking because EarthRenew's processing plant at Strathmore, in Calgary, sits on a 25,000-head cattle farm.
The coup de grace is this: EarthRenew's tech solutions are all about modularity. That means they can provide livestock operators with their own scalable facilities to turn a massive--and expensive--manure problem into an electricity-generating cost-saver.
Solving a Big Manure Problem
Livestock production continues to expand to meet the insatiable needs of the market, but the waste from these operations is also an environmental and logistics concern. Farmers from America to Europe have massive herds of cattle that produce huge volumes of manure which contains levels of phosphorus that end up rivaling the worst of our carbon emissions. That phosphorus also gets into our groundwater and pollutes our waterways extensively.
Some 80% of these farms produce more cow waste than they can ever use. The farmers end up paying an estimated $621+ million to get rid of it. It's even led to the creation of what can only be described as an organized crime ring around cow dung. In 2019, the United States had 94.8 million head of cattle. A 1,000-pound cow produces an average of 80 pounds of manure every single day. That's 7.6 billion pounds of toxic poo.
It's a win-win situation for everyone from farmers drowning in poo, to communities with threatened waterways, to sustainable investors who want to see someone turning healthier food into money-making environmental victories. But there are even more victories to be had here:
The $150-billion organic farming market is flourishing, with health and Natural Foods now becoming a mainstream lifestyle supported by mountains of evidence, as well as a much more climate-friendly way to farm.
Market Research estimates that the global organic food and beverage market will grow from US$124.7 billion in 2017 to around $323.1 billion by the end of 2024, good for an impressive compound annual growth rate (CAGR) of 14.6% and more than 4x the total food sales growth of 3.6% predicted over the same timeframe.
The Key to the Patented Technology
Filling the fertilizer gap is the key to solving multiple energy and farming problems, and EarthRenew's patented, low-cost production process is being created to do just that.
Located on a 25,000 head cattle feedlot, EarthRenew's Strathmore Plant will produce heat-treated organic fertilizer that may end up being far superior to the composted manure full of hormones and antibiotics that are common in the market. The company's thermal treatment is set not only to drive off the unwanted contaminants but will also be richer in the key nutrients as well as being a slow-release compound.
EarthRenew's product is being built so that it only needs to be applied in a single pass alongside seed planting compared to three passes with the conventional organic fertilizers (passing, tilling, and seeding) leading to up to 80% cost savings for the farmer.
Indeed, in October 2019; EarthRenew received key US and Canadian approvals for its organic fertilizer products. These important product certifications mean that in future the company will be permitted to sell its organic fertilizer products across those huge markets. The company's predecessor invested about $70 million in the product development.
Resolving a huge environmental problem coming from massively polluting livestock operations. Offering a new fertilizer solution to the fastest-growing food industry. And coming up with a modular, scalable fix for livestock farmers who can't get rid of their volumes of manure in a cost-effective manner. This is exactly what Big Capital is looking for today: Risk-mitigating, sustainable businesses.
When you bring these things all together under one umbrella you get a new player that opens up a vast expanse of growth opportunities. Call it what you will--sustainable investing, impact investing or the formal ESG (environmental, social, and governance) investing--this megatrend already topped $30 billion in 2018.
Green investing no longer merely associated with a warm moral glow, or even political. It's mainstream investing based on market sentiment and where Big Money is moving.
EarthRenew's business model consisting of clean organic fertilizers and reduced carbon energy really encapsulates what ESG is all about, and has earned the accolades of both Canadian and American authorities.
It's a big reason why the shares have soared up to 400% over the past 12 months despite some very choppy trading. Bigger companies are getting involved too. From automakers to energy giants, going green is really paying off with investors.
While Tesla (TSLA) is one of the top car companies on the planet, it is much more than just that. Tesla's CEO, Elon Musk, is known to put the future into focus. As the mind behind SpaceX, he's taken his vision of sustainability and future tech and run with it. Though Tesla is at the cutting edge of electric vehicle design, it's real influence on the future might just be its solar business.
Tesla's Solar Roof project aims to change the way houses function. It replaces traditional roofs with stronger, and arguably more aesthetically pleasing, solar panels that can power your entire home. It also comes in as the lowest-cost-per-watt solar option in the American market.
Enphase Energy (ENPH) has had an incredible year. While it doesn't produce solar panels or windmills, it is definitely a major player in the renewable energy revolution. It's a pure tech play that has paved the way for new possibilities in the industry. It's hardware and software help regulate and utilize energy in the most efficient way possible.
Over the course of the past year, investors finally started to catch on to Enphase's true value. Its stock rose from $18.23 last June to $52 this June. That's a 185% increase. It's 5 year returns are even more impressive, boasting a humbling 779% increase from June 2015 to today.
As one the world's leading renewables producers, NextEra Energy (NEE) is literally building the path towards a clearer tomorrow. Even more exciting, the company was the number one capital investor in green energy infrastructure, and the fifth largest investor across all sectors.
In addition to its already massive impact combatting the world's looming climate crisis, it has ambitions of investing an additional $55 billion in infrastructure in the next two years in the United States. And while it helps deploy the world's new energy reality, it has also committed to weaning itself off foreign oil. And shareholders are all in. Over the past 15 years, shareholders have seen 945% returns.
No other oil major takes the green revolution more seriously than Total (TOT). Total maintains a 'big picture' outlook across all of its endeavors. It is not only aware of the needs that are not being met by a significant portion of the world's growing population, it is also hyper-aware of the looming climate crisis if changes are not made. In its push to create a better world for all, it has committed to contributing to each of the United Nations' Sustainable Development Goals.
Total checks every box in the ESG checklist. It is promoting diversity and safety, making massive changes in its day to day operations to ensure that its business is environmentally sound, and has even committed to going carbon neutral by 2050 or sooner. It's no surprise that shareholders are loving its forward-thinking approach. As one of the biggest names in energy,
Suncor Energy (SU) has adopted a number of high-tech solutions for finding, pumping, storing, and delivering its resources. Not only is it big in the oil sector, however, it is a leader in renewable energy. Recently, the company invested $300 million in a wind farm located in Alberta.
If the next shale boom truly is to be in the oil sands then giants like Suncor is sure to do well out of it. While many of the oil majors have given up on oil sands production – those who focus on technological advancements in the area have a great long-term outlook.
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Cautionary Note regarding Forward-Looking Information
This article contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to EarthRenew's ability to sell electricity to the electrical grid, EarthRenew's ability to execute its business plan, its commercial production facility redevelopment plan, implementing CCm's technology into its processes, the evaluation and implementation of various technologies to increase and maximize the efficacy of its fertilizers; it will be able to virtually recoup all its generation costs; it can help solve energy and farming problems; that EarthRenew's production process will be low cost, applied in a single pass alongside seed planting; upgraded 7-1.7-2.2 NPK organic fertilizer product has the potential to deliver up to 4x higher value for farmers; that it will be permitted to sell its organic fertilizer products across US and Canada; that it can virtually recoup all its power generation costs; its plans to use about 1.5 MWh of the 4 MWh generated by the Strathmore Plant to produce pelleted organic fertilizers; that it can sell modular, scalable plants to livestock farmers, a modular plan could at a cost around $12.7 million which would pay for itself within 3-5 years; EarthRenew's smart fertilizercan to exceed current organic fertilizer sales and set a new benchmark; the Strathmore facility will produce commercially by the Spring of 2021; and that more pellet formulations are being developed.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; regulatory risks; the company may not be as able to diversify or scale up as thought because of potential lack of capital, lack of facilities, regulatory compliance requirements or lack of suitable employees, partners or suppliers; it may not be able to raise funds and develop better organic fertilizer than competitors; costs may be higher than expected and profits therefore lower; actual operating performance of the facilities may not meet expectations; that markets may not materialize as expected; and other risks of the energy and fertilizer industries. There may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
ADVERTISEMENT. This communication is not a recommendation to buy or sell securities. Oilprice.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively "the Company") may in the future be paid by ERTH to disseminate future communications if this communication proves effective. In this case the Company has not been paid for this article. But the potential for future compensation is a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. We have not been compensated by ERTH but may in the future be compensated to conduct investor awareness advertising and marketing for ERTH. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the company. Frequently companies profiled in our alerts experience a large increase in volume and share price during the course of investor awareness marketing, which often end as soon as the investor awareness marketing ceases. The information in our communications and on our website has not been independently verified and is not guaranteed to be correct.
SHARE OWNERSHIP. The owner of Oilprice.com owns shares of this featured company and therefore has an additional incentive to see the featured company's stock perform well. The owner of Oilprice.com will not notify the market when it decides to buy more or sell shares of this issuer in the market. The owner of Oilprice.com will be buying and selling shares of this issuer for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.
NOT AN INVESTMENT ADVISOR. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.
RISK OF INVESTING. Investing is inherently risky. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any account will or is likely to achieve profits similar to those discussed.
DISCLAIMER: OilPrice.com is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with OilPrice.com or any company mentioned herein. The commentary, views and opinions expressed in this release by OilPrice.com are solely those of OilPrice.com and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Media Contact e-mail: email@example.com
U.S. Phone: +1(954)345-0611