Canada's Xebec to build USD-21m RNG facility in Quebec

Biogas plant. Source: EBRD (www.ebrd.com). All rights reserved.

February 19 (Renewables Now) - Canadian clean energy firm Xebec Adsorption Inc (TSE:XBC) on Tuesday said it will collaborate with Quebec-based Bahler Biogas Inc to build a facility that will produce renewable natural gas (RNG) and biofertiliser from organic waste.

Total investment in the project is expected to be about CAD 28 million (USD 21.1m/EUR 19.6m), to be funded by the two companies, using equity, non-recourse debt and a potential grant from the Programme de Traitement des Matieres Organiques par Biomethanisation et Compostage in Quebec.

The plant, located in Quebec, will process 45,000 metric tonnes of organic waste annually to produce biogas via anaerobic digestion. Equipment provided by Xebec will be used to upgrade the biogas into RNG. The facility will have the capacity to produce more than 150,000 gigajoule (GJ) of RNG and 7,500 metric tonnes of biofertiliser a year. 

The project is expected to become operational early next year. It has a 20-year off-take agreement at a fixed price for the RNG, while the biofertiliser will be sold by a bio-solid management partner.

(CAD 1.0 = USD 0.756/EUR 0.701)

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Before joining Renewables Now, Alex was a UK-focused business news reporter. Now she is covering global news from the renewable energy industry with a special interest in M&A.

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