BioHiTech Global acquires minority interest in West Virginia MBT plant

BioHiTech Global Inc., Chestnut Ridge, New York, has announced it has acquired a 17.2 percent equity interest in the nation's first resource recovery facility utilizing a proprietary mechanical biological treatment (MBT) technology for the disposal and recycling of mixed municipal solid waste (MSW). BioHiTech, through its interest in Apple Valley Waste Conversions, has the exclusive development rights for this technology in eleven states in the northeast U.S. and the District of Columbia.

The waste-to-solid fuel plant which utilizes a patented process developed by Entsorgafin S.p.A., an Italian engineering firm, is currently under construction in Martinsburg, West Virginia, and is expected to begin commissioning in Q4 2017. Once complete, the facility is being partially financed with a $25 million tax-exempt bond issued by the West Virginia Economic Development Authority.

The facility will receive MSW through a 10-year contract with a regional waste hauler, 40-50 percent of which, will be converted into a clean burning EPA approved alternative fuel (Solid Recovered Fuel or SRF) through the patented MBT process. The facility has also entered into a ten-year contract for the sale of the SRF with a privately held company in West Virginia that intends to use the SRF as an approved supplement to fossil fuels in the production of cement. With approximately 80 percent of the incoming waste being diverted from landfills, the Company estimates the reduction in landfill waste disposal will result in a greenhouse gas (GHG) emission reduction of 28,000 tons per year of carbon dioxide (or carbon dioxide equivalent).

BioHiTech acquired the 17.2 percent interest in Enstorga West Virginia LLC, a privately held holding company that owns the facility, in exchange for a cash payment of $1.034 million and has an option to acquire an additional 22.8 percent for approximately $1.4M. The company sold a series of convertible notes to fund the acquisition.

"We continue to focus on the application of proven, cost-effective and disruptive technologies to traditional waste management," says CEO of BioHiTech Global, Frank E. Celli. "As more and more companies target zero waste initiatives and state governments continue to implement regulations to foster more environmental responsibility, we are driving cost effective solutions into the marketplace.  Our goal is to make doing the right thing also a smart business decision. Unlike other clean tech solutions, Entsorga's technology does not require government subsidies or additional premiums for waste disposal.

We expect this facility to have a positive impact on our financials beginning in 2018, and plan to use it as a showcase to demonstrate to businesses and municipalities that there is an economically feasible clean alternative for organic and inorganic waste disposal. With this facility commencing operations later this year and with the development rights for this technology in other states, we are poised to enter into a new phase of growth at BioHiTech to build lasting value for our stockholders for years to come."

Entsorga West Virginia LLC, prior to BioHiTech's investment, was a joint venture between Apple Valley Waste Technologies LLC. and Entsorga USA. Entsorga Italia S.p.A. (parent of Entsorga USA) is based in Tortona, Italy and was founded in 1997 on the basis of leveraging technology to improve environmental protection and standards. Entsorga is a leading provider of biological treatment solutions for both organic and municipal solid wastes in Italy, United Kingdom, Slovenia, Eastern Europe and Greece. Entsorga has developed a comprehensive suite of solutions aimed at improving environmental protection including the HEBioT MBT system, which will be used by Entsorga West Virginia.