Cielo Waste signs feedstock deal with Mountainview
2017-07-27 10:56 ET - News Release
Mr. Don Allan reports
CIELO SIGNS FEEDSTOCK AGREEMENT FOR HIGH RIVER AB WASTE TO RENEWABLE DIESEL REFINERY
Cielo Waste Solutions Corp. has signed a multiyear feedstock agreement with Mountainview Eco Products. This agreement will provide Cielo, at a fixed cost, with an ample supply of sawdust and wood shavings to fulfill 100% of the feedstock requirements for the Company's first commercial waste to renewable diesel refinery, which is currently under construction on the Company's High River, Alberta property.
Don Allan, President and CEO of Cielo, states: "This agreement provides an excellent source of feedstock for not only our first refinery but also potentially for future planned refineries in Alberta. While Mountainview can supply 100% of our initial projected requirements, we will continue to diversify our feedstock inputs to include a wide range of garbage-derived waste streams, including municipal blue box solid waste (garbage), plastics and tires. The quality of Mountainview's sawdust and wood shavings exceeds our requirements and will allow for our feedstock costs to be significantly lower than the costs being paid by conventional biodiesel facilities for their feedstocks, which includes food-derived materials, animal tallow and or yellow/brown grease. We look forward to working with Mountainview in Alberta as we expand our refinery footprint beyond our first refinery."
Haldane, President of Mountainview, commented: "We are very excited to be able to participate in such a green project with Cielo, and sell a waste product into a new industry sector. Cielo's strategy of converting waste products into high grade renewable diesel makes total sense to us from both a business and an environmental standpoint. We are extremely pleased to be a part of Cielo's strategic plan."
Cielo's technology has been proven to work in the Company's demonstration refinery ("Demo Refinery") utilizing multiple different waste feedstock streams, including garbage, tires, plastics and wood waste converting all of them, on a cost-effective basis, into high grade renewable diesel fuel, in batches of up to 50 liters an hour. Having been granted a development permit from the municipal district, which is subject to customary conditions, Cielo is now in the process of moving its Demo Refinery to High River, where it will be retrofitted into about a 356 liter per hour (2.9 million liter per year) continuous flow refinery at a projected cost of under $2 million. Once Cielo validates that the retrofitted refinery can operate on a continuous flow basis, Cielo plans to scale up the size of its refineries to produce about 2,000 liters an hour (16 million liters a year) of high grade renewable diesel and build multiple modular refineries around the world, offsetting landfills and other feedstock supplies. Cielo intends to focus initially on building additional refineries in Alberta to fill the Canadian mandated demand for renewable diesel, almost all of which is currently having to be imported into Canada, due to the high feedstock costs and product quality issues being experienced by Canadian biodiesel producers. In the coming months and years, Cielo's goal is to replace as much as possible of the imported mandated demand, of about 650 million liters a year, with its high grade renewable fuel.
About Cielo Waste Solutions Corp.
Cielo Waste Solutions Corp. is a publicly traded company with its shares listed to trade on the Canadian Securities Exchange ("CSE") under the symbol "CMC". Cielo is commercializing a transformational, patent-pending, technology that can convert multiple different waste streams into renewable diesel, at a significantly lower cost than biofuel companies. Landfills are one of the world's leading contributors to Green House Gas emissions and are projected to double in size over the next 7 years. Cielo can potentially resolve this crisis, on a cost-effective basis, by converting multiple different waste-derived feedstocks, including sorted municipal solid waste (garbage), wood and agriculture waste, tires, blue-box waste, all plastics and virtually any other cellulous waste product into high grade renewable diesel.
We seek Safe Harbor.