Municipal solid waste, or MSW, is an ideal feedstock for use in the production of renewable fuels. The organic material found in our household garbage is rich in hydrogen and carbon, the building blocks for jet fuel and diesel. And unlike other biomass feedstocks, MSW does not have to be grown and has no competing uses — it is a true waste product located in the same population centers that demand low-cost, low-carbon transportation fuels.
The company’s use of long-term contracted MSW feedstock also provides it with a significant competitive advantage over other renewable fuels competitors that use alternative feedstocks such as corn, sugarcane and other sources of biomass. These competitors are faced with numerous feedstock challenges including higher cost, volatile pricing, location, lack of reliable supply, weather and competing uses of feedstock.
To date, Fulcrum has successfully executed on its feedstock strategy of securing large volumes of MSW by entering into long-term agreements with its waste service partners, Waste management and Waste Connections, for the supply of MSW feedstock throughout North America. Under these long-term agreements, Fulcrum eliminates feedstock commodity supply and pricing risk. In addition, with the long-term MSW feedstock agreements, Fulcrum will be able to produce a low-carbon transportation fuel at a very predictable and stable cost of production, a significant competitive cost advantage over both industry peers and transitional fossil fuels.