Kleangas announces agreement to acquire Wisconsin pellet plant

By Erin Voegele | August 20, 2014

Kleangas Energy Technologies Inc. recently announced a definitive stock purchase agreement to acquire a company in Wisconsin that owns a 15,000 metric ton pellet production facility and a landfill gas-to-energy plant with 2.4 MW of capacity. The name of the company has not been disclosed.

The pellet plant uses heat generated from the landfill gas-fueled combined-heat-and-power (CHP) facility in the manufacturing process. The system is in the process of undergoing an upgrade that is expected to increase capacity to nearly 5 MW.

According to information released by Kleangas Energy, the 20,000 square foot pellet plant sits on 5 acres of land. The company estimates the site could be expanded to accommodate up to 10,000 tons per month of production. 

Bo Linton, president and CEO of Kleangas Energy, said the pending acquisition complements the company’s existing pellet brokering business. “We entered in the business initially as a reseller of pellets,” he said, noting the company has primarily been active in the South Korean market.

In addition to the pellet mill, the company also recently acquired Second Cycle Recycling. According to Linton, that company engineers various types of environmentally friendly pellet that don’t use toxic binders. One type pellet the company has developed is made from recycled paper. According to Linton, the recycled paper pellets can be used in heat and power applications. Samples of the pellets have been evaluated by Wisconsin-based Twin Ports Testing, he said. Second Cycle Recycling has also developed other types of pellet for various non-energy uses.

According to Linton, his company has not yet determined what types of pellets it will make at the Wisconsin facility that is being acquired. He did note, however, that the facility originally produced wood pellets.

Moving forward, Linton said Kleangas Energy is interested in acquiring additional pellet plants, particularly ones that utilize heat from a cogeneration facility. He also said the company is interested in manufacturing wood pellets in the future.