NLC Energy has a business model that sounds a bit like a wizard turning rocks into gold or a certain biblical fellow who could famously turn water into wine.
The company builds, owns, and operates renewable natural gas facilities that convert organic waste into useful commodities like clean energy, organic nutrients, clean water, organic liquid carbon dioxide, and dry ice.
Related: 63-year-old retailer closing all stores in Chapter 11 bankruptcy
Organic waste does not solely mean animal poo. It can also include food waste, grass trimmings, and more. It's a proven process that should be a key part of building a United States that's not dependent upon foreign oil.
NLC Energy creates renewable energy.
“Through the process of anaerobic digestion, we harvest the energy stored in organic waste sourced from farms and food manufacturers,” it shared.
By upcycling waste into useful commodities, the company offers a way for waste generators to reduce their carbon footprint and attain ESG goals.
“Low-carbon, renewable natural gas replaces higher-carbon fossil fuels that are used in transportation, by utilities, and by manufacturers. Clients and partners advance towards meeting net-zero carbon emission objectives,” NLC shared on its website.
Those are noble goals that are perhaps not fully embraced by the current political climate.
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NLC Energy files for Chapter 11 bankruptcy protection
NLC Energy Denmark LLC, a renewable energy company specializing in organic waste digestion for biogas production, has filed for Chapter 11 bankruptcy protection in the Eastern District of Wisconsin. The company, formerly known as NEW Organic Digestion LLC, operates a facility in Denmark, Wisconsin, while maintaining its principal place of business in Nashua, New Hampshire.
The company filed its voluntary petition on August 16 with a plan already prepared, suggesting a strategic approach to its restructuring efforts. The filing indicates assets valued between $50 million and $100 million, with liabilities ranging from $100 million to $500 million.
NLC Energy reported having between 50 and 99 creditors and stated that funds will be available for distribution to unsecured creditors after administrative expenses are paid.
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The company has filed a restructuring document with the bankruptcy court that was not publicly available on August 16.
Welles Hatch, NLC Energy's Chief Financial Officer, signed the petition, which was filed by attorney Jerome R. Kerkman of Kerkman & Dunn.
NLC Energy wants to save the world, literally
NLC Energy has presented itself as part of the solution to the problem of global warming. It's doing that in a practical, not ideological, way.
“With more people on the planet, we burn more fuel to regulate temperatures, emitting more carbon, which further warms the atmosphere, requiring yet more energy to regulate temperatures. The vicious cycle accelerates warming, seemingly without remedy.
What if we could access energy while decelerating our emission of carbon? NLC Energy’s process captures methane before it emits to the atmosphere, converting it to fuel, which, when burned, releases less potent carbon into the atmosphere. With disruptive technology, we can meet the energy needs of the planet while bending the carbon curve towards true neutrality.”
The company has been working toward that while literally paying farmers for their unused manure. That's a solution to a problem that also comes with added revenue.
NLC Energy uses dairy manure as its primary feedstock. Manure supplies are sourced from dairy farms in the region near our facility, based in the heart of dairy production in Northeastern Wisconsin.
“From a business perspective, we effectively borrow the farm’s manure for a fee per gallon of manure collected. Once manure has been through the digestion process, it is returned to the farm in amounts equal (gallon for gallon) to that which was collected. The farm is paid for each gallon collected, with the assumption that a modern dairy farm is generating approximately 30 gallons of manure, per cow, per day,” it shared on its website.
NLC Energy pays for all manure transport, including trucking of the manure from the farm and its subsequent return to the farm.
In addition, the company will make capital improvements on the farm to facilitate manure collection. Capital improvements may include reception tanks, agitators, pumps, fill stand and other necessary infrastructure on the farm to allow for daily collection and return of manure.
Related: Beyond Meat headed to Chapter 11 bankruptcy
NLC Energy Denmark Chapter 11 bankruptcy at a glance:
- NLC Energy, a renewable natural gas company converting manure and food waste into clean energy, has filed for Chapter 11 bankruptcy.
- Assets: $50M–$100 million; Liabilities: $100M–$500 million; lists 50–99 creditors.
- CFO Welles Hatch signed the petition, filed by attorney Jerome R. Kerkman.
- Business model: Pays farmers for manure, processes it via anaerobic digestion, returns residue, and covers transport plus farm infrastructure upgrades.
- Company positioned itself as a climate solution, capturing methane before release and supporting ESG/net-zero goals.
- NLC has filed a bankruptcy plan, but it has not been made public yet.
