This past month, we made excellent progress in getting the REA and establishing the business case for selling Poo from the Zoo brand fertilizer. The challenges around securing feedstock remain, however, discussions internally and with our grocery store partners have been engaging and productive, making us confident a deal can get done in the coming months.
Over the last four weeks, we have continued to research and understand the market for organics as well as the constraints of our grocery partners. This learning lead to ZooShare putting together what we feel is a very strong proposal to supply our biogas plant for the long term, under a flexible pricing mechanism. We had a productive meeting with our partners, where more of the complexities of the relationships involved were discussed, and we can now see a path to getting the contract done. Our grocery partner remains engaged in our project and in resolving the challenges that have to date stopped us from signing the second feedstock contract, which we are very pleased about.
In addition, we continue discussions with other waste producers and waste management companies, ensuring that ZooShare is able to get the supply it needs for the best possible price.
Since we began taking names and pledges for a waiting list, we have 108 individuals and total pledges of between $525,000 and $728,000. If you would like to get on our official waiting list, please fill out the form here (make sure to check the “Yes, I am already registered as a ZooShare member” box).
We are currently reviewing and revising the Offering Statement with the intention of renewing it, and at this point, if we decide to sell more bonds, it looks like they will be available in September or October. Stay tuned for more information on this.
Renewable Energy Approval (REA)
We were successful in resolving all remaining issues related to stormwater management and the approval process is in the final stages now. The Ministry of the Environment and Climate Change is currently preparing a conditions sheet, which will be sent to ZooShare for approval, before the official approval is issued. At this point, we are about 2-3 weeks away from receiving the REA, which is excellent news.
Digestate (fertilizer) sale/disposal
After working out the revenue sharing agreement last month regarding the fertilizer to be produced from the liquid digestate, this month we worked on figuring out the practical details and steps required to maximize potential revenues from selling solid digestate, or “Poo from the Zoo”. After speaking to multiple zoos selling composted manure to the public, and some colleagues in the composting industry, we determined the best way for ZooShare to monetize solid digestate is to sell it in bulk directly to consumers from our site. The details continue to be worked out, but it is looking like we will offer customers the ability to buy Poo from the Zoo by the truckload or by the bag, probably all done during April/May each year. We will not be purchasing a bagging line and putting the product in garden centres as was the original intention, instead people who want to buy bags will be given a shovel and empty bags to fill up.