Ductor and TotalEnergies form JV to develop, build and operate a pipeline of biogas and organic fertilizer projects

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HELSINKI and ZURICH, May 25, 2023 /PRNewswire/ -- Ductor, a leading circular biotechnology company within biogas and organic fertilizers, and TotalEnergies, the global multi-energy company, today announce a new commercial and financial partnership with joint development of production facilities and TotalEnergies equity ownership in Ductor.

The two companies have agreed to form a joint venture to co-develop and jointly invest in 15 to 20 anaerobic digestion facilities targeting nitrogen rich feedstocks and organic waste from the agricultural sector and turning this into sustainable organic fertilizers and renewable natural gas.

The facilities will utilize Ductor's unique and proprietary circular biotechnology already in use at Ductor's operational plants in Germany and Mexico, capable of processing highly untapped waste streams from the poultry and aquaculture industries, that will help solve today's environmental challenges in the agri-food sector. The priority geographies for delivering these joint venture projects are the US and Europe.

"Ductor has identified a significant opportunity pipeline for future biogas and sustainable organic fertilizer plants ready for development and commercialization, and the partnership with TotalEnergies will allow us to move forward with executing that pipeline and towards the construction of the first integrated fertilizer and biogas project," said CEO of Ductor Bernard C. Fenner.

In the joint venture, Ductor will be responsible for screening opportunities, securing land, feedstock, engineering, obtaining permits, and conducting feasibility studies. TotalEnergies will actively participate in the development, construction, and operational phase, as well as being the off taker of all produced renewable natural gas and its associated environmental attributes. Ductor will off-take and market the specialty fertilizers such as liquid nitrogen fertilizers produced at the facilities. The product has been registered for use in organic farming by the CDFA – California Department of Food and Agriculture in October 2021.

"We are pleased to partner with Ductor, a young company with an innovative pre-treatment technology that will enable us to develop new biomethane production projects, using organic waste that is currently not, or only slightly, reused. By accelerating the biogas chain, this technology contributes directly to the energy transition and to TotalEnergies' ambition of producing 20 TWh of biogas worldwide by 2030," said Olivier Guerrini, Vice President, Biogas at TotalEnergies.

"We live in times where local energy production; food security and global warming are essential topics for everyone. Ductor's truly circular solution for repurposing high-grade organic residues into energy and fertilizer is part of the answer. The global market for organic fertilizer and biogas is expected to grow strongly in the years to come – and the market potential is virtually endless," Bernard C. Fenner added.

TotalEnergies acquires a stake in Ductor
In addition, with the formation of the joint venture, TotalEnergies has acquired a 20% stake in Ductor. VP of biogas in TotalEnergies, Olivier Guerrini, will join the Board of Ductor.

"We are excited about welcoming TotalEnergies as a shareholder in Ductor, in addition to being partners in the Joint Venture. Not only does it strengthen our foundation significantly, but it is also a great endorsement of the potential in Ductor's team and our technology. We are also looking forward to Olivier Guerrini, with his broad experience and deep biogas industry insights and competence, will join our Board," said Bernard C. Fenner.

TotalEnergies and biogas
TotalEnergies is a leading company in the European biogas segment with production capacity of 1.1 TWh. The Company aims to become a major player in the international market by joining forces with leading partners such as Clean Energy, Veolia, and Ductor. It is active across the entire value chain, from project development to marketing of this renewable gas and its byproducts, including biofertilizers and bioCO2. TotalEnergies aims to produce 20 TWh per year by 2030, equivalent to the average annual gas demand of four million French consumers and a reduction in CO2 emissions of around four million tons.

About Ductor | www.ductor.com
Ductor started in 2009 with the ambitious aim to create a solution that would help solve today's environmental challenges in the energy and agriculture sector. Today we build, own, and operate microbiological turnkey facilities, turning high nitrogen feedstocks and organic waste from the agricultural sector into sustainable fertilizers and biogas. With two plants in Mexico and Germany and numerous projects in the pipeline, we can prove that we are able to live up to our purpose: We are unlocking bio-resources to make food sustainable and energy clean.

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SOURCE Ductor Oy