ITG Renewable Energy Division:
It has always been ITG’s plan to create pyrolysis based facilities in the United States and other countries. Because of an opportunity to partner with a like-minded company we have been able to expedite this process. After discussions beginning over two years ago, ITG is excited to partner with Tennessee Renewable Syngas in order to create synthetic diesel plants throughout the United States and overseas employing a patented technology utilizing low cost feedstock. Our first two projects will be in Western Tennessee in an economically depressed area. The facilities will have a combined cost of $85 million. We are hopeful to be in production in both facilities by the end of 2022.
First Crude-to-Distillate (CTD) Business Unit: Our initial project is the creation of a state-of-the-art CTD processing facility in Tennessee which should be operational by the third quarter of 2020 and which will process hemp oil crude into THC free distillate. Initial revenue will come from a tolling (process servicing) contract which will produce a steady stream of revenue and which will require no cost for the raw material.
MPBU Unit: With proposed subsequent rounds of financing we plan to continue our hemp and wood biomass processing effort utilizing the MPBU units. This process is a patent pending, university created catalytic pyrolysis method. We have acquired rights through a license to commercialize this technology. This effort will include the establishment of an additional processing facility in Tennessee which will encompass our hemp and wood biomass processing units. We are in negotiations with the owner of the building for a lease purchase option agreement. We will create contracts with local farmers in Tennessee and surrounding areas who will provide us with the hemp for our hemp processing facility. We will also create or house within the same structure (247,000 sq ft), our wood biomass facility. Our wood biomass will be provided by contract from area wood mills. Our plan is to create a 1000 ton per day processing facility which will convert wood oil into biofuel and bioplastics. We will provide a smaller pilot plant initially to establish profitability parameters before creating the 1,000-ton facility.