Renewable U Medicine Hat has also advised CIELO that it has the funding in place to close the contemplated Purchase and Sale Agreement
Cielo Waste Solutions announces that Renewable U Medicine Hat has informed CIELO that it has secured an agreement in principle to purchase 80 acres of land in Cypress County, Alberta, which is near Dunmore, approximately 3 kilometers southeast of Medicine Hat. Renewable U Medicine Hat has also advised CIELO that it has the funding in place to close the contemplated Purchase and Sale Agreement, which will be subject to a number of closing conditions that are anticipated to be satisfied on or before July 1, 2020.
Renewable U Medicine Hat is the company with which CIELO has entered into a Memorandum of Understanding (the “MOU”)(see February 26, 2019 Press Release) to fund all aspects of building and placing on production a joint venture facility in, or within, 50 kilometers of Medicine Hat (“JV Facility”). The JV Facility is being designed and engineered to initially convert up to 8 tonnes per hour of multiple waste feedstocks (about 65,000 tonnes/year) into 4,000 liters an hour 32.7 Million liters/year of renewable fuels that can be blended into conventional highway transportation, marine and aviation/jet fuels. It is contemplated that the JV Facility will operate 341 days a year and cost approximately $50 million to build and commission. During construction, CIELO expects to employ approximately 50 – 70 people and, once on production, CIELO expects that the JV Facility will employ approximately 25 full-time employees.
The 80-acre parcel of land is located directly east of Canadian Pacific Railway’s (“CP”) Dunmore Rail Yard and is optimally located between the TransCanada #1 Highway and CP’s main line. This location will provide Cielo with the flexibility to bring in various waste feedstocks and ship the renewable fuel end-products out by rail and or by ground transportation.
Don Allan, President and CEO of CIELO, stated “Renewable U Medicine Hat, after scoping out multiple locations, presented us the land in Cypress County, which is perfectly located and ideal for future expansion opportunities. We are extremely excited to see our partners show their conviction and belief in CIELO by initiating this significant investment. This will allow CIELO to move forward with the applicable regulators and local residents to apprise them of our plans to build a green facility to convert waste into renewable fuels.”
Renewable U Medicine Hat’s Director and Chief Operating Officer, Ryan Jackson, stated, “We are extremely pleased to have found a location that is situated within Cypress County where local investors and partners reside that share our vision of creating a world class facility!”
Source: Company Press Release