“Environmental Waste Issues Are Pressing and Timely Solutions Are Imperative”: Marc Hazout, President and CEO of SusGlobal Energy Corp. (SNRG)

The human population continues to grow, and organic wastes grow with it. Hence, it is a given that a solution for sustainable global management of these wastes must be achieved. Canada-based SusGlobal Energy Corp., a fully reporting U.S. Issuer (OTCQB: SNRG), is innovating in this space through its decades of experience and proprietary technology that is equipped to deliver on this objective.

With several provincial environmental licenses, SusGlobal is allowed to process organic waste at its facilities. The company uses a proprietary process to process the organic waste streams to produce regenerative products such as organic dry compost and organic liquid fertilizers. By diverting the organic waste from landfill sites to its facilities, the company minimizes the harmful effects of Greenhouse Gas emissions, often cited as one of the contributing factors to climate change.

Established in 2017, the company delivers essential municipal service; SusGlobal’s revenue streams are not impacted by market conditions or volatility, and its profits are stable, reoccurring, and predictable (even in the current COVID-19 pandemic scenario). The scale of its operations allows the company to process large amounts of organic waste in a cost-effective manner while delivering on the global demand for environmentally friendly fertilizers in a circular economy model.

SusGlobal is truly addressing the concerns of climate change and the problems of how to feed a growing population using sustainable and socially responsible solutions in dealing with organic waste and producing environmentally friendly organic fertilizers – earning its reputation and a registered trademark as Leaders in the Circular Economy^®. Owing to its continued innovations, The Finnish Innovation Fund Sitra (“Sitra”) chose the company as ONE OF 39 INSPIRING circular economy solutions from around the globe during the World Circular Economy Forum Online last year.

While currently, the company remains focused on growing its market presence in Canada, its core objective in 2023 is to expand into the multibillion-dollar US market, beginning with Florida and California. SusGlobal is also exploring organic waste solutions in Europe through licensing partnerships. In a brief interview with us, Marc Hazout (President and CEO) talked to us about the company’s revolutionary pathogen-free organic liquid fertilizer and more. Read on for the excerpts from the interview.

Q. What was your motivation behind starting a visionary company like SusGlobal Energy?

Environmental waste issues are pressing and timely solutions are imperative. We decided to implement on a large scale the sustainable processing of organic waste streams and divert them from landfill to reduce greenhouse gas emissions as part of the climate change initiative. We are Leaders In The Circular Economy^® and it was time to present and implement a solution to produce regenerative products from organic waste, as our technology and proprietary processes can deliver these results in a circular economy model.

Q. Could you tell us about the services you offer?

We process municipal and commercial organic waste streams and produce regenerative products such as organic dry compost and organic liquid fertilizers for solution specific markets such as the Wine industry, Cannabis industry, Agriculture and to consumers.

Tell us about your proprietary technology that transforms organic waste into a pathogen-free recognized organic liquid fertilizer.

SusGro™ is a revolutionary pathogen-free organic liquid fertilizer, produced through a proprietary system. First the organic waste stream is de-packaged and a slurry is produced which then sits in a tank to hydrolyze, it is then pumped into our heat-treating system which kills all pathogens, then into a two-step fermentation process and finally an enzymatic process to obtain a pathogen free liquid organic fertilizer concentrate which is mixed 1:100 with water and can be applied topically, basically sprayed onto agriculture. We can modify the NPK (Nitrogen, Phosphorus, and Potassium) values for solution specific applications such as vineyards, cannabis or different types of crops by modifying the proprietary enzymatic process.

Q. How important is your Belleville facility? What are the products and services offered by the facility?

SusGlobal is the owner of a 48.14-acre land parcel at its Belleville, Ontario, facility and produces its Earth’s Journey^® Organic Compost by processing 70,000 tonnes per annum of organic waste, with an additional 50,000 tonnes per annum organic waste processing and transfer site approved under the existing Environmental Compliance Approval (the “ECA”) and Site Plan. We de-package and treat source separated organics (“SSO”) and industrial, commercial and institutional (“ICI”) organic wastes to produce an organic compost source. Our organic compost brand Earth’s Journey^® is produced along with several other private label brands for big box retailers, while continuing to reduce greenhouse gas emissions (“GHG”) by diverting organic waste streams from landfills.

Q. Could you tell us about Earth’s Journey^® Compost?

Our compost is an organic AA Compost (certified by the Compost Council of Canada standard) that is made from food waste and no biosolids which results in a high grade and elevated NPK value product.

Q. How important was the integration of Ydro Process^® into the company’s proprietary Organic Waste Processing and Composting Facility at Belleville?

The Ydro Process and product yields a superior compost and accelerated the production time by several weeks. SusGlobal has proven that by maximizing the efficiency and performance of the existing infrastructure, it is possible to meet the increase in demand for these type of fertilizers and new standards of sustainability, resulting in a tremendous competitive advantage.

Q. Could you tell us about the importance of the GORE^® Cover System? How does it optimize the composting process?

SusGlobal uses the state-of-the art GORE^® Cover System as its operating platform. Using this technology, the Belleville processing facility can transform green waste into high quality compost in a period of only 8 weeks. With minimal emissions and virtually no odor, SusGlobal offers a sustainable and environmentally friendly solution to disposing of green waste and diverting it from landfill.

The GORE^® Cover System utilizes positive aeration and a specially designed cover to create an enclosed system that optimizes the composting process, controls odors and micro-organisms, separates leachate from storm water and creates a consistent process that is unaffected by outside environmental conditions. Medium-pressure ventilators connect to in-floor aeration trenches, which allow oxygen to be blown into the heap. Stainless steel probes inserted into the compost pile monitor oxygen and temperature parameters then relay this information to a central computer. This data then controls the ventilators to keep the compost in perfect conditions.

The design of the GORE^® Cover influences the extraction of moisture during composting and prevents the final product from being too wet, while at the same time it ensures that there is sufficient moisture retained to allow the material to be properly decomposed. The microporous structure of the GORE^® Cover membrane means that it is practically impossible for bio-aerosols to penetrate. Microbiological tests have proved that when using the GORE^® Cover, microbes can be reduced by greater than 99%; thus ensuring that workers, nearby residents and consumers are protected and safe. The insulating effect of the GORE^® Cover and the pressurization created ensures even temperature distribution, which means that the necessary temperature for pathogen reduction across the entire cross-section of the heap can be maintained, even during the winter months. By closely monitoring and managing temperature within the heap, pathogenic micro-organisms are safely destroyed throughout the entire composting material and all quality standards are met.

Incoming material to the facility is blended with other organic material to create the perfect “recipe” for the composting process. This blending includes setting the mixture’s moisture content, carbon-to-nitrogen ratio, particle size and porosity. Once the blending is complete, the material is moved into windrows and the GORE^® Cover is pulled over the pile for the first phase of the composting process. For the next four weeks, the windrow undergoes intensive composting until the cover is removed and the windrow is moved into Phase 2 of the system. The windrow is covered again for maturation for a period of a further two weeks. After this time, the compost is moved to Phase 3 where it is left uncovered on an aerated pad for an additional 2 weeks to begin the curing process. Once removed from Phase 3, the compost will continue curing in large storage windrows before it is screened to the appropriate particle size. Before finished compost is sold, samples are taken and sent to an accredited lab to ensure that the product quality is consistent with Compost Council Regulation. These lab tests will measure certain levels within the compost including heavy metals, fecal coliform and salmonella. In addition to the required testing, we also test all our products for nutrient content including nitrogen, phosphorus, potassium and sodium to ensure the utmost quality for our consumers. It is only when test results have confirmed that the finished product meets all requirements – both by law and by our own standards – that the all-natural organic fertilizer is marketed to our customers.

Q. How does SNRG’s platform stand apart from its competitors?

We produce organic fertilizers from large scale feedstock of source separated organic waste streams and do not use biosolids which allows us to produce high-grade organic fertilizers, both dry compost and liquid fertilizer.

Q. Working despite the pandemic last year must have been challenging. How was the company affected by the pandemic?

The company was not affected by the pandemic. As an essential business, we continued to operate with no interruption, even seeing increased organic waste stream levels as the population stayed home and generated more organic waste.

Q. How is SNRG giving back to the community?

Through our SusGlobal.org entity, we assist municipalities implement green bin programs and diversion from landfill by financing or supplementing the implementation with financial assistance and expertise.

Q. What does the future hold for your company?

We are Leaders In The Circular Economy^® and we will replicate this model all over North America and become a significant manufacturer of organic fertilizers , as part of the Climate Change initiative producing regenerative organic products which are reintroduced to those areas to benefit agricultural carbon sequestration, one of the most cost-effective ways to slow processes of global warming, consistent with more sustainable and less chemically dependent agriculture and as part of the Circular Economy model, maximizing shareholder value and ultimately paying a dividend to our investors.

The Visionary

Marc Hazout, President and CEO

He founded SusGlobal Energy and currently serves as a Director, Chairman, President and CEO. Mr. Hazout brings over 25 years of experience in public markets, finance and business operations to SusGlobal Energy. Over the past several years Mr. Hazout has been involved in acquiring, restructuring and providing management services, as both a Director and an Officer, to several publicly traded companies. In 1998, Mr. Hazout founded and is the President and CEO of Travellers International Inc., a private equity firm headquartered in Toronto. Travellers has been involved in a multitude of successful capital market transactions, and over the past two decades has focused on building relationships in China, participating in that country's tremendous growth opportunities. Mr. Hazout attended York University in Toronto studying International Relations and Economics. Mr. Hazout speaks English, French, Hebrew and Arabic.

“We process municipal and commercial organic waste streams and produce regenerative products such as organic dry compost and organic liquid fertilizers for solution specific markets such as the Wine industry, Cannabis industry and Agriculture.”