TransAlta's investment in EMG provides a low-risk entry point into the wastewater treatment industry


TransAlta announces investment in EMG International. (Credit Shutterbug75 from Pixabay.)

TransAlta announced that it has acquired a 30 per cent equity interest position in EMG International (“EMG”). TransAlta and EMG have joined forces to leverage their complementary customer bases to grow both businesses and further enhance product offerings to assist customers towards their sustainability goals.

“This investment is an exciting platform to diversify our sustainability offerings to customers while directly supporting our clean energy transition and E2SG goals,” said Dawn Farrell, President and Chief Executive Officer of TransAlta. “The wastewater treatment market has tremendous growth potential and reinforces our position as a trusted provider of ESG services to our customers.”

“We view TransAlta as an exceptional strategic partner and believe this collaboration will provide significant opportunities to both companies,” said Manaf Farhan, President and Chief Executive Officer of EMG International. “EMG has strong growth potential and this partnership will enable us to reach a broader client base and advance our environmentally sustainable solutions.”

EMG is an established company with over 25 years of experience in process wastewater treatment and specializes in the design and construction of high-rate anaerobic digester systems. They have developed an innovative proprietary wastewater treatment system (“PurEffluent”) that provides breakthrough technological improvement in biological wastewater treatment.

TransAlta’s investment in EMG provides a low-risk entry point into the wastewater treatment industry and creates strong synergies with the Company’s existing customer service offerings. EMG’s services are critical to a customer’s on-site production and to the achievement of their ESG objectives. TransAlta’s investment is expected to result in US$2 to $3 million of EBITDA annually with projects delivering double digit returns. The Company expects to see strong growth in EMG’s business over the next few years, resulting in annual EBITDA in the range of US$8 to $10 million.

EMG’s wastewater treatment process converts organic waste into a valuable source of renewable energy. Their proprietary technology produces a biogas stream that can be used as fuel to generate electricity, displacing energy consumed from higher emitting resources. The investment provides a unique opportunity for TransAlta to leverage its vast expertise in on-site generation to support further advancements by EMG in the waste-to-energy space.

Investment Highlights:

Diversifies TransAlta’s ESG service offering into the wastewater treatment space
Investing in an established business with opportunity to unlock growth potential
Access to new and diverse set of customers with strong ESG objectives
Leverages TransAlta’s power generation brand and experience to capitalize on on-site generation opportunities
Option to potentially expand EMG’s business into Canada and Australia
Directly supports our clean energy transition and is aligned with United Nations Sustainable Development Goals

Source: Company Press Release