CleanBay Renewables, a producer of RNG, green hydrogen and controlled-release fertilizer, has signed a letter of intent for a potential business combination with NASDAQ-listed SPAC BurTech Acquisition Corp., according to a news release.
Under the terms of the letter, CleanBay’s existing equity holders would convert 100% of their equity into the combined public company. The proposed transaction values CleanBay at $330m. The BurTech trust account currently holds approximately $294m in cash.
“BurTech expects to announce additional details regarding the proposed business combination when a definitive merger agreement is executed in the second quarter of 2023,” the release states.
CleanBay’s process converts agricultural byproducts into fertilizer. CleanBay’s Chief Executive Officer Donal Buckley said in the release that the company is pursuing new facility developments for that purpose.
“We are excited to partner with CleanBay and believe that access to capital markets will enable CleanBay to commercialize and scale its proprietary and patented processes,” BurTech Chairman and CEO Shahal Khan said in the release. “CleanBay’s ‘shovel-ready projects’ present an attractive investment opportunity for existing and future shareholders.”
The release also highlights Maryland and California state policies to assist in financing such plants and produce RNG, hydrogen and natural fertilizer on an industrial scale.
“With nine identified facilities and eight potential future facilities in the pipeline, we believe that CleanBay will become a significant player in the North American RNG and natural fertilizer market,” Khan said.
According to CleanBay’s management, at full capacity, each CleanBay bioconversion facility can recycle more than 150,000 tons of poultry litter annually. By repurposing a potential source of excess nutrients, each facility can generate more than 750,000 MMBtus of sustainable RNG, 100,000 tons of natural, controlled-release fertilizer, and up to an estimated 1,000,000 tons of CO2 equivalent carbon credits that can be available for monetization in global carbon markets.
As an alternative to renewable natural gas, the facilities can also produce clean hydrogen at an estimated rate of 20,000 tons per year. CleanBay has accumulated proprietary intellectual property covering its conversion process to include trade secrets, a U.S. patent and pending patent applications in the U.S. and Europe.
