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There’s a food crisis looming on the horizon.
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A global economy already buffeted by supply chain bottlenecks now has to figure out how to live without Russia’s fertilizer feedstocks, thanks to Ukraine war sanctions.
Natural gas, potash and ammonia, all key to the manufacture of fertilizers, have seen their prices rise dramatically in recent years…and even days.
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The result: The risk — even likelihood according to some experts — of a major global food crisis.
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You see, the fertilizer made from these important inputs keeps crop yields at levels that can produce enough food to feed the world.
With those inputs now limited, the world is desperately casting about for ways to meet its needs for fertilizer.
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Providing a potential solution to this crisis is SusGlobal Energy (SNRG.OTCQB), a cutting-edge agri-business with a patented process for making liquid fertilizer and compost out of organic waste.
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As you’re about to see, SusGlobal is not only supplying the market with a commodity in hot demand, but it is actually getting paid richly to do it.
It’s an ideal scenario that deserves your immediate attention as an investor.
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SusGlobal has two operating facilities in Canada that take the organic waste from municipalities and turn it into a rich compost and liquid organic fertilizer.
The process is so green, it actually has the potential to earn carbon credits for the methane it takes out of the waste stream.
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The liquid organic fertilizer and compost SusGlobal produces from diverted waste streams is a green solution to the world’s fertilizer crisis.
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That’s because organic waste in landfills is one of the key sources of methane in the atmosphere. SusGlobal stands ready to help by diverting a portion of that organic waste to its processing facilities.
And the fertilizer generated by its proprietary process is amenable to a wide variety of formulations to accommodate the needs of different crops.
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…With Products That Pay For Themselves
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Better still, because municipalities are actively seeking to keep organic waste out of their landfills, they’re willing to pay SusGlobal a tipping fee to take it of their hands.
This gives the company a huge profit head-start on other fertilizer companies.
While most fertilizer companies are scrambling to secure the feedstocks for their products (at ever-higher prices), SusGlobal has a near-unlimited supply of feedstock for its product…and it’s getting paid to amass that feedstock.
So a typical producer’s cost component is a revenue component for SusGlobal!
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SusGlobal’s processing facility in Belleville, Ontario is on track to be a very profitable operation.
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Obviously, between the tipping fees and the carbon credits SusGlobal stands to receive, it has an enviable business model with which to move forward.
As the graphic above makes clear, the company’s Belleville facility alone stands to make $7.0 million in tipping fees to help it create $9.3 million per year in compost revenue and $24 million in liquid fertilizer revenue.
It’s hard not to like how those numbers tumble.
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SusGlobal’s business model is also imminently scalable.
With a repeatable process up and running at two locations in Ontario, SusGlobal has the blueprint to set up similar operations across Canada and the United States.
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Management is projecting exponential growth in the years ahead, as production ramps up on its current projects and more projects come online.
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It’s a combination of high-growth and exceptional profit potential that makes SusGlobal one of the market’s underappreciated gems right now.
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Momentum Is On SusGlobal’s Side
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With the steep part of its growth curve directly ahead of it, SusGlobal Energy is a green economy stock ideally constructed to take advantage of the current market environment.
Marketing itself on a green economy concept christened “The Circular Economy®,” SusGlobal is impervious to the supply chain headaches faced by other fertilizer suppliers.
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Consider this: It’s costing Oslo-based Yara International almost 10 times as much to produce ammonia right now as it did a year ago. Potash and natural gas prices are also through the roof.
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These supply chain and pricing issues are going to have a huge impact on the world’s ability to produce enough food going forward.
But, as with any situation where some players experience challenge, others see opportunity.
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And opportunity is definitely what SusGlobal has with its organic fertilizer products — green end-products that take methane out of the atmosphere and put profits in the company’s coffers.
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Add in the scalability that its business model offers investors, and there’s every reason to begin looking into SusGlobal Energy before it hits the steep growth curve just ahead.
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