Refco Adsorption Inc., a global provider of clean energy solutions, is pleased to announce on October 3 that it has completed the acquisition of all outstanding shares of UECompression (UEC) headquartered in Colorado. Founded in 1983, UEC is the premier designer and manufacturer of customized air and gas compressor solutions for power generation, industrial and energy applications.
The acquisition of UEC provides a cost-effective and timely way to expand the production capacity of standardized renewable natural gas systems by five times while supporting UEC's traditional business as the business continues to undergo energy transformation. In addition, RBK's global manufacturing footprint has been further optimized, introducing European natural gas power generation products such as Hy.GEN into the United States, and focusing UEC's facilities on containerized and skid-mounted renewable energy systems. In addition, the acquisition has increased the coverage of the clean technology service network in six states (Montana, Wyoming, Colorado, North Dakota and South Dakota, and Nebraska) to meet the requirements of standardized RNG And the demand for hydrogen systems is accelerating the growth of local service and support needs.
Refco expects that with limited operational changes, it can use UEC's excess capacity to produce approximately 150 to 190 containerized BGX Biostream ("Biostream") biogas upgrades and Hy.GEN hydrogen plants in North America each year. UEC's new capacity adds to the recent capacity increase at Xebec's Canadian manufacturing plant.
"UEC is helping Ripco consolidate its position as a leading renewable natural gas player by adding a 100,000 square foot manufacturing facility in the United States. With this acquisition, we are responding to the acceleration of the energy transition and the need for containerized RNG and hydrogen systems. In addition, with the development of the hydrogen economy, UEC’s existing hydrogen compression expertise will become more and more important. This acquisition will also help us fully meet current and changing local sourcing needs,” RUBI According to Kurt Sorschak, Chairman, President and CEO of Coadsorption.
The total consideration for the acquisition of the issued shares of UEC is 8 million U.S. dollars (9.9 million Canadian dollars), subject to certain restrictions and adjustments. Taken alone, UEC expects unaudited revenue in 2021 to be approximately US$35 million (C$43.3 million). With the introduction of containerized renewable natural gas and hydrogen systems and the use of clean technology service networks to support UEC and Xebec's installed equipment base, RBK expects this business to grow significantly in the next few years.
Significantly increase production capacity to support the growing U.S. animal manure RNG market. According to data from the U.S. Department of Agriculture and the National Pork Producers Council, there are approximately 92,000 active dairy and pig farms in the U.S. The U.S. Biogas Commission estimates that there are approximately 8,574 of these farms. One is to prepare for the production of biogas and renewable natural gas. More than 98 farms have already produced renewable natural gas for the local transportation market.
Refco focuses on providing services for animal manure-based projects because they can reduce agricultural emissions, support local communities, and recycle nutrients. Biostream is positioned as a market-leading solution for livestock operations, and orders from top US dairy product developers indicate that this includes orders for the first 18 units from Brightmark and Chevron RNG partners.