Anaergia Inc T.ANRG

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Maintain their $30.00 target. GLTA

Anaergia Inc.

(ANRG-T) C$7.46

New 3rd Party Facility Commissioned Event

Anaergia announced that it held a ribbon cutting ceremony for a new third party owned facility in Highland, California.

Impact: NEUTRAL

Details: Anaergia announced that it held a ribbon cutting ceremony at the Sterling Natural Resources Center, a third party owned wastewater facility featuring the full complement of Anaergia's anaerobic digestion and post-digestion resource recovery solutions. Specifically, the Sterling facility features:

1. the full suite of Anaergia's OmnivoreTM solutions that increases the capacity and recovery of wastewater digestion;

2. post-digestion liquids treatment with water filtration membranes produced by its affiliated company, Fibracast, that have the capacity to recycle up to eight million gallons of wastewater per day; and

3. post-digestion solids treatment that utilizes a pyrolysis process to convert the residual solids into biochar, a natural and nutrient rich fertilizer.

The biogas will be used to generate three megawatts of renewable electricity, which will be used to power the facility and sell excess power into the grid. This facility was in Anaergia's Capital Sales backlog and this announcement has no modelling consequences from our perspective. The technologies referenced above are discussed in detail in Appendix A of our initiating coverage report (full report).

TD View: We expect that this release was meant to showcase the depth of Anaergia's product and intellectual property portfolio and note that the disclosure may have been motivated primarily by commercial/business development reasons, rather than for capital markets purposes. From our perspective, the Sterling facility serves as another reference facility for Anaergia to showcase its technology to new customers which may result in future sales, legislators in the the state of California that are implementing a wide range of incentive regimes targeting emissions and landfill diversion, as well as legislators in other jurisdictions that see California as a leader in incentivizing energy transition. We continue to believe that Anaergia possesses several high quality attributes, including its broad intellectual- property portfolio, strategic focus on municipal waste through a growth- focused infrastructure model, and the most commercial-ready business model in our Clean Technology coverage universe. As a result, Anaergia remains our top pick in the Clean Technology sector.