Cielo Waste Solutions
Ticker: CMC.CN / CWSFF
Listings: Canadian Securitites Exchange / US OTC
Market Cap: 307 MCAD at time of posting
Share price: 0.87 CAD at time of posting
Industry: Converting waste to renewable fuel
Cielo Waste Solutions provided an update this morning (3/8 2021) regarding their Desulfurization Process which has to been seen as one of the biggest breakthroughs for the company
The company reports:
“Cielo has been in collaboration with the University of Calgary to pioneer a scalable, cost-effective solution to decrease the sulfur content in its renewable diesel. Cielo has completed the fabrication of a bench-scale system that has 1,000 times more throughput than the University of Calgary’s demonstration laboratory unit, which provided Cielo with proof-of-concept data. Extremely successful tests have been completed on Cielo’s renewable diesel using the new process. Cielo’s goal was to meet the highway diesel specification of 15ppm or less of sulfur. Late Friday, Cielo received laboratory results that indicated the successful reduction of the sulfur content to approximately 5ppm, well below the required specifications. Cielo will now proceed with scaling up desulphurization efforts in light of this breakthrough.”
The meaning of this for Cielo Waste Solutions cannot be highlighted enough! As you may have read in my interview with SmallCap Investor Robert McWhirter published 7/3 2021 he thought the biggest risk for Cielo Waste Solutions was to cross the hurdle of scaling up the Desulfurization Process in order to be able to get a premium price for their renewable fuel.
All that appears to remains now is to fabricate and assemble the equipment at Aldersyde needed to start producing low sulfur premium renewable fuel. Getting the Sulfur content down to below 15 ppm was as I’ve pointed out crucial to be able to sell renewable diesel with a premium price.
President and CEO of Cielo Waste Solutions Don Allan commented on the breakthrough in the press release:
“We are very pleased to announce the successful completion of testing of the desulfurization process and that we’ve resolved the desulfurization issue. Now, with funds in-hand, we are fabricating the equipment for installation at our facility in Aldersyde, Alberta.”
A sidenote in the pressrelease was also the exercising of warrants by the companys largest secured lender, BJK Holdings Ltd which have has exercised 10,000,000 of its warrants for approximately $1M in proceeds. Cielo has applied this towards the current loan of $3.85 MCAD and intends to payoff the loan in full by end of March 2021.
Cielo Waste Solutions remains as my largest position in the portfolio and I’m confident that the company is on a positive path towards commercial success even more so after this breakthrough.
Link to press release: https://ceo.ca/@thenewswire/cielo-provides-update-on-the-desulfurization-process
This is not to be considered financial advise, always do your own research!