BioHiTech Global, Inc. (“BioHiTech” or the “Company”) (NASDAQ: BHTG), a sustainable technology and services company, announced in October the acquisition of an interest in a 45-acre industrial zoned property located in an economic opportunity zone in Rensselaer, New York. The acquisition represents a material step toward the company’s potential development of a “renewable energy campus” planned to include New York’s first sustainable waste conversion facility similar to BioHiTech’s original state-of-the-art plant in Martinsburg, West Virginia.
The acquisition agreement provides the company with a substantial interest in the entity that controls the 45-acre property under a 99-year ground lease allowing for certain uses, including solid waste transfer stations, waste-to-energy facilities, waste renewable fuel processing facilities and other industrial uses. The Company believes the site meets numerous criteria that could result in its qualification for expedited permitting for major renewable energy facilities under regulations presently proposed by the New York State Office of Renewable Energy Siting (ORES) for those who desire to develop such a facility. Located directly across the Hudson River from the Port of Albany, and having both barge and rail access, the site is capable of providing support for ongoing or future shipping needs including those to support offshore wind projects.
“This strategic acquisition of the interest in one of the most desirable industrial properties in the Hudson River Valley is conducive with our plans for the development of a network of sustainable solid waste conversion facilities in New York State. The transaction also builds value by providing us with an expansion opportunity to co-locate other renewable energy projects, such as a solar farm, alongside our proprietary waste conversion facility. Importantly, we believe the cost of acquisition was modest compared to the relative value of the land parcel itself and the economic potential around its development,” said Frank E. Celli, CEO of BioHiTech.
“This is a material step in a required process to establish our second facility, the first to be located in New York. It may also serve as a catalyst for the next phase of our long-term strategy, identifying and initiating projects in key markets where we can deploy a series of environmental solutions and make a positive contribution toward improving New York’s carbon footprint. As our current proposed project only requires use of approximately 25% of the site, additional portions can be allocated to fit the needs of Gov. Cuomo’s new Climate Leadership and Community Protection Act and other forward-looking clean energy initiatives to create strong sustainable solutions, including the support of both solar and wind projects. We believe such joint use of the property may serve as one of the first examples of a renewable energy/sustainability campus and we look forward to providing further updates as we progress.”
A more detailed description of the acquisition transaction will be available in the Company’s filings with the Securities and Exchange Commission.