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Xebec Adsorption, Inc., headquartered in Canada, aims to expand its renewable natural gas (RNG) and hydrogen technology capacity in North America by 500%.

After completing the acquisition of UEC Compression, Colorado, Refco said last week that it has established a “cost-effective and timely approach” to achieve a five-fold increase in production.  

UEC is located in the Denver area and designs and manufactures customized air and gas compressor products for power generation, industrial and energy applications.

"UEC helped RBK consolidate its position as a leading renewable natural gas company by adding a 100,000-square-foot manufacturing facility in the United States," said RBK CEO Kurt Sorschak (Kurt Sorschak) . "Through this acquisition, we are responding to the accelerated energy transition and related interest in containerized RNG and hydrogen systems."

Xebec said that by “making limited changes to operations,” it can use UEC's excess capacity to produce 150-190 biogas upgrades and hydrogen plants in North America each year. The company noted that the new UEC capacity has increased the recent capacity growth of its Canadian manufacturing plant. 

Refco also stated that it will bring European natural gas power generation products to its US manufacturing base and focus UEC's facilities on the production of containers and skid-mounted renewable energy systems. 

In addition, as demand for standardized RNG and hydrogen systems increases, this acquisition enables Xebec to add local services to six states—Colorado, Dakota, Montana, Nebraska, and Wyoming. And support service coverage.

Refco has been recognized as a pioneer in the production of renewable natural gas from agricultural and industrial waste. By removing hazardous particles, hydrogen sulfide and other impurities from waste sources, technology is being developed to produce pipeline-grade RNG.

According to RBK, there is still room for growth in the RNG market from animal manure. It said the U.S. Biogas Commission estimates that of the nearly 92,000 active U.S. dairy and pig farms counted by the U.S. Department of Agriculture and the National Pork Producers Council, 8,574 are “ready to produce biogas and renewable natural gas.”

 In addition, Refco pointed out that 98 farms have produced RNG for the local transportation market.

RNG market observers have observed that more standardized and long-term contracts—more predictable prices—will help expand RNG's appeal for transportation and other applications.

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Refco also stated that it focuses on animal manure-based RNG projects because they can reduce agricultural emissions, support local communities, and recycle nutrients.

"In addition, as the hydrogen economy develops, UEC's existing hydrogen compression expertise will become increasingly important," Sorschak said. "This acquisition also helps us fully meet current and changing local sourcing needs."

RBK will acquire UEC's outstanding shares for 8 million U.S. dollars (9.9 million Canadian dollars), but it may be subject to restrictions and adjustments. The company expects UEC's unaudited revenue this year to reach 35 million U.S. dollars (43.3 million Canadian dollars).

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Related topics: Renewable natural gas UEC compressed Xebec adsorption

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