Cielo Waste Solutions announces a Memorandum of Understanding (“MOU”) with Renewable U Halifax Inc. (“Renewable U Halifax”) to build, at an estimated cost of $50 Million, a renewable diesel refinery in, or within 150 kilometers of Halifax, Nova Scotia.
Renewable U Halifax is one of multiple corporations under the “Renewable U” name (“Renewable U Companies”), with which Cielo has entered into memorandums of understanding on substantially the same terms as this MOU (the “Prior MOUs”), as previously announced. Renewable U Halifax and Cielo will be working towards entering into a joint venture agreement (“JV Agreement”) contemporaneously with the joint venture agreements to be entered into with the other Renewable U Companies, which will provide the framework to build and operate a 4,000 liter per hour joint venture refinery (“JV Refinery”) in Nova Scotia that will be engineered to operate 24 hours a day, 341 days per year. Cielo is expecting to convert 327,360 tonnes of garbage into 163,680,000 liters of renewable fuels annually from the 5 announced JV refineries. It is anticipated that this JV Refinery will create in Nova Scotia 50 full-time jobs during construction and employ 25 full-time people once operational. The JV Refinery will utilize Cielo’s proprietary waste to high grade renewable fuel technology being commercialized at the Company’s refinery in Aldersyde, Alberta (the “Aldersyde Refinery”), located just south of Calgary.
In order to gain direct access to a port to potentially import multiple different waste feedstocks, including the problematic single-use plastics, Cielo has agreed to reallocate the $250,000 Joint Venture Fee (“Fee”) previously paid to Cielo, by Renewable U Brooks Inc. (“Renewable U Brooks”), pursuant to a Memorandum of Understanding dated April 27, 2019 between Cielo and Renewable U Brooks (“the Brooks MOU”) to Renewable U Halifax. In conjunction with the aforementioned reallocation of the Fee, as of January 8, 2020, the Brooks MOU has been terminated.
Raphael Bohlmann, President of Renewable U Halifax and Renewable U Energy Inc. (“Renewable U”), parent company of Renewable U Halifax, commented “After extensive review of potential waste feedstock arrangements for the four territories previously selected by Renewable U’s subsidiary companies, Renewable U is pleased to be able to help Cielo gain access to the port of Halifax, which may result in Cielo being able to sell high-grade renewable fuels into the marine industry, on a cost effective basis.”
Don Allan, President & CEO of Cielo, stated “We are pleased that Renewable U was open to helping us gain access to the port of Halifax, which opens up the opportunity for us to broaden our reach of deploying our waste to high-grade renewable fuels technology to the Maritimes and elsewhere, as well as being able to source different waste feedstocks. We appreciate Renewable U’s commitment to helping us to deploy our technology globally.”
Source: Company Press Release