The combination of growth, sustainability, industry disruption, and environmental benefits is hard to find and Attis Industries (NASDAQ: ATIS) is one of the few companies across the globe that has achieved it. The company’s energy vertical, Attis Innovations, is working towards disrupting the fossil fuel industry by revolutionizing the processing of biomass in order to produce ethanol and other bi-products which have immense potential. The goal of the management is not just to work towards a cost advantage and profitability but also a sustainable future for the planet through the production of high-quality renewable fuels, the generation of employment, and the preservation of the environment. The company is truly making an effort towards living up to the concept of creating shared value.
Establishing A World-Class Green Tech Renewable Campus
CEO Jeffrey Cosman and the Attis management have taken their first big step towards their dream of establishing a world-class green tech renewable campus by acquiring Sunoco LP’s (NYSE: SUN) ethanol plant in Fulton, New York. This facility is expected to be the company’s largest unit with the existing 134 acres of land occupied by the ethanol production facility plus additional land acquisition in the vicinity to the tune of 300 to 400 acres for establishing other renewable energy facilities. As of today, we know the Fulton plant has the capability to produce 85 Million Gallons of Ethanol and other products like CO2, Dried Distilled Grains and Corn Oil but what does this mean for investors?
Based on current public info, here is how we calculate additional revenue Attis will generate since acquiring Sunoco LP’s (NYSE: SUN) ethanol plant in Fulton:
- 85 Million gallons of Ethanol @ ~ $1.39 = $118,150,000
- 350 Million pounds (175,000 TONS) of CO2 @ $10 per ton = $1,750,000
- 480 Million pounds of Dried Distilled Grains @ $0.08 per pound = $38,400,000
- 1.5M Gallons of Corn Oil @ $1.73 per gallon = $2,600,000
Based on our research we calculate that Attis will add $160,900,000 in revenues. With Attis Industries (NASDAQ: ATIS) trading with a market cap of only $7.6M we think investors could see major upside from current levels.
In addition, the company is working on streamlining the processes and removing bottlenecks within this facility. Management believes that with these improvements, the same facility can generate up to 100 million gallons of ethanol each year, about 20% higher than the output produced when Sunoco ran the plant. If successful, the additional 15 Million gallons would add approximately $20,850,000 in additional revenue. The improved productivity is a function of the core team’s specialized knowledge and the company’s efficient proprietary processes with respect to biomass extraction.
In terms of expansion, the first add-on facility on the same campus is expected to be a biodiesel plant which will use the corn oil extracted from the ethanol facility to create biodiesel. The company also plans to establish a biorefinery in the same campus which will effectively result in the creation of more than 100 direct jobs. Over a long-term horizon, the management also plans to add solar around the same site with the goal of making it the best green tech renewable site in the US.
Sustainable Expansion Plans
Since the volume of forestry in the surroundings is critical for biomass processing plants, Attis Innovations is looking at states like Georgia, Florida, South Carolina and Mississippi to set up/ acquire new biomass processing facilities after the New York acquisition. The company expects about five to seven units in place over the coming two years which is a solid indication of the management’s rapid growth plan to make maximum use of the new technology that they have developed. Each of these units are expected to generate more than 40 jobs and the goal of these is to significantly reduce the dependence of each of these states on crude oil and other fossil fuels. The large amount of biomass generated in each state with an Attis facility will be used to produce ethanol and other renewable fuels in an attempt to make the state self-sustained. Attis’ management is also looking at international expansion through strategic partnerships with players in different countries such as Malaysia, Indonesia, Philippines, Brazil, UK, Argentina, and Canada.
Lignin Technology And The Huge Carbon Fibre Upside
Attis Innovations has developed a highly superior technology which helps in the extraction of better cellulosic value as well as lignin from biomass. This is the main reason why the company is able to extract a better output of ethanol from its new ethanol facility. However, apart from the ethanol, the lignin produced through Attis’ processes, is of such high quality as a result of constant refining, that its bi-products can eventually replace those produced by fossil fuels in the very near future.
A classic example of one such product is the carbon fibre – a bi-product which is twice as strong as steel with about one-sixth of the costs that has the potential to change the face of the entire automobile industry. As of today, about 200,000 tonnes of carbon fibre are produced each year at a cost of $5-7 per pound through fossil fuels. Depending on the tensile strength and quality of this carbon fibre, it is absorbed by the automobile, aeronautical, and aerospace industries at varying rates from as low $10 to as high as $100 per pound. However, the process of producing carbon fibre today involves the use of fossil fuels and is potentially harmful to the environment.
Attis’ new technology helps in the production of carbon fibre from lignin at a significantly lower cost of hardly $1-2 per pound. The quality of this carbon fibre is high enough to meet the performance demand of the automotive industry at a minimum and Attis has a significant cost advantage. It is worth highlighting that the company recently partnered with Iowa State University to conduct research and development for the production of carbon fibre from its lignin. Iowa State University is an industry leader in the development of carbon fibre from bio based sources and has tested 141 different kinds of lignin. The carbon fibre market is growing rapidly due to its benefits of light weight, benefitting fuel efficiency and this revenue stream alone is expected to act as a major growth catalyst for Attis in the near future.
Conclusion Attis Industries (NASDAQ: ATIS) is at a very interesting phase in its growth today. The company is sitting on some really world class intellectual property assets in the field of renewable energy and has taken its first step towards leveraging its expertise through the acquisition of the Sunoco facility which based on our calculations will add approximately $160,900,000 in additional revenue. Combined with the fact that all of the ethanol produced from the new plant is already pre-sold to Sunoco through a 10-year offtake agreement itself shows what a high-demand product the company is dealing in. If management delivers, there is little doubt that the revenues as well as the market capitalization of the company are going to witness a triple-digit growth or probably even a quadruple-digit growth in the coming year.
Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Salesparq, LLC which owns SmallcapsDaily.com is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. Salesparq, LLC, which owns SmallcapsDaily.com, may be compensated for its services in the form of cash-based compensation for the companies it writes about. For making specific investment decisions, readers should seek their own advice. Pursuant to an agreement between TraDigital IR and Salesparq, LLC, which owns SmallcapsDaily.com, we were hired for a period from 1/3/2019 – 3/15/2019 to publicly disseminate information about Attis Industries Inc., including on the Website, email and other media including Facebook and Twitter. We were paid $35,000 (CASH) for & were paid “0” shares of restricted common shares. We own zero shares of Attis Industries, Inc. We do not intend to buy or sell additional shares of Attis Industries, Inc. in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. Please read our full disclaimer here: https://smallcapsdaily.com/disclaimer/