Questor Technology Inc. (QST-X), which designs and manufactures waste combustion and energy generation equipment, is looking to acquire local peer Emission Rx Ltd. as a cornerstone of a strategy initiated by its new leadership.

Last week, Calgary-based Questor announced it entered into a letter of intent to fold in Emission Rx, a fellow Calgary company that develops emission mitigation technology for oil and gas operations.

The acquisition’s consideration is up to approximately $3 million. If finalized, it would combine Questor’s rental fleet of more than 100 incinerators with Emission Rx’s field service support.

Emission Rx’s technology is similar to Questor’s Q-Series, which incinerates waste gas from oil and gas operations to reduce greenhouse gas emission intensity and air pollution. A second product line, Q-Power, takes the heat from oil and gas production and converts it to electricity.

If the acquisition is finalized, Jeff Nelson and Justin Bouchard, the senior leaders of Emission Rx, would join Questor in senior operating roles.

The transaction is targeted to close on or before Oct. 1, subject to conditions such as the execution of a definitive agreement and acceptance by the TSX Venture Exchange. The transaction would also resolve outstanding litigation between the two companies that was commenced by Questor in 2018.

“Two Alberta companies built this market, and this transaction would bring the equipment, service capability and talent under one roof to deliver an enhanced service offering for our customers, and sustainable value creation for shareholders,” Mike Lindsay, interim president and CEO of Questor, said.

Questor shifts strategy after executive shake-up

Such a change in strategy was initiated by the departure of the Questor’s former president and CEO Audrey Mascarenhas in April. Since her exit (which has led to a legal dispute that includes statements of claim filed at the Court of King's Bench of Alberta), Questor appointed Lindsay as interim president and CEO, and formed a special committee of independent directors to oversee the leadership transition and company strategy.

Questor announced the appointment of Craig Joyce as senior director of sales and business development in early August to expand its presence in the Canadian and U.S. markets. Under Mascarenhas, the company focused on Mexico, Nigeria, the Middle East and North Africa.

A second part of the strategy refresh is engaging a third-party consultant to review Questor’s Organic Rankine Cycle power generation technology. The consultant is working with Questor’s team to assess its technical readiness, remaining development requirements, capital needs, market opportunity and potential returns, Questor said.

Questor is targeting new markets, including landfill biogas, syngas, waste engine exhaust, geothermal, solar and cement plant waste heat, in addition to a variety of oil and gas projects.

Regulations buoy demand for Questor’s technology

In its latest financial results covering Q1, Questor reported revenue of $499,308 and a net loss of $114,704, compared to revenue of approximately $2.4 million and net income of $350,179 the year prior.

The company updated progress on its 1,500-kilowatt waste-heat-to-power prototype, saying construction was nearing completion with final testing underway. Commissioning is scheduled to begin in Q4, and the company said it was advancing negotiations and preparations for the prototype's field demonstration, with the field deployment expected in late 2026 to early 2027.

Lindsay pointed to the European Union’s methane regulations and the Global Methane Pledge as encouraging developments for Questor in the Q1 financials reporting. Mexico, for example, is a signatory of the pledge, and an energy services provider in the country signed a $9-million contract with Questor to supply its technology for rental over three years.