Blue Horizon ventures into waste sorting
Blue Horizon Bio-Diesel Inc., which produces diesel fuel from municipal waste and used oil, hopes to join forces with a company that processes garbage.
Blue Horizon Bio-Diesel’s parent company, Blue Horizon Industries Inc. (CNSX:BH) of Red Deer, announced on Tuesday that a tentative deal has been struck with Owaste2Energy Canada Ltd. Based in Vancouver, Owaste2Energy has the Canadian rights to a municipal waste-sorting system, said Don Allan, president and CEO of Blue Horizon.
Allan said Owaste2Energy’s process involves grinding up garbage, which removes the moisture in it.
“Forty per cent of the garbage is just water,” he explained, adding that the resulting particles are also much more compact.
“They can reduce the size of a waste transfer site, anywhere from 70 to 85 per cent.”
Blue Horizon Bio-Diesel has the Canadian rights to a technology that takes municipal waste materials like plastics, paper and tires, and combines them with used oil and a catalyst to create diesel fuel. It has a small demonstration plant, but wants to develop commercial-scale plants.
Last week, the company said that it has been approved to receive approximately $8 million under the Alberta Bioenergy Producer Credit Program, with this amount to be paid in the form of a 13 cent a litre subsidy on diesel fuel production over a four-year period.
Allan said Blue Horizon Bio-Diesel’s partnership with Owaste2Energy would allow the two companies to offer their services to municipalities together, with Owaste2Energy processing waste materials and Blue Horizon Bio-Diesel converting much of it into a valuable product.
“Together, the two companies have strong synergies that will change the way municipalities throughout the world handle their garbage,” he said.
“We believe together we can build our companies into world leaders in the waste-to-fuel industry.”
Allan said the companies have until April 30 to reach a binding agreement.
In the meantime, Blue Horizon Bio-Diesel is looking for a suitable site to develop a commercial-scale diesel fuel production plant.
“We’re looking to set up in the Red Deer area.”