CIELO WASTE SOLUTIONS ANNOUNCES INTENT TO LIST ON THE TSX VENTURE EXCHANGE

Cielo Waste Solutions
Ticker: CMC.CN / CWSFF
Listings: Canadian Securitites Exchange / US OTC
Website:https://www.cielows.com/
Market Cap: 419 MCAD at time of posting
Share price: 1.19 CAD at time of posting
Industry: Converting waste to renewable fuel

After a truly flying start for Cielo Waste Solutions in 2021 the company keeps delivering. It was announced by Cielo Waste Solutions on the evening of 15/3 2021 that the company has applied for a listing of its shares for trading on the TSX Venture Exchange (“TSXV”).

ESG comment: This step, if fullfilled, will be another big quality stamp for the company and make it easier for institutional buyers to take a stake in Cielo Waste Solutions. It also opens up for wider capital injection opportunities for the company since institutional shareholders often have access to larger capital streams. Cielo Waste Solutions is also sure to get a lot of media and investor attention upon successfull listing at the TSX Venture Exchange (“TSXV”) !


Don Allan, President and CEO of Cielo Waste Solutions stated
“This year has begun extremely well for Cielo.  From our first pre-sale of renewable fuel, to better than expected preliminary results in desulphurization tests, we’ve had an amazing start to 2021, and this uplisting to a larger stock exchange is just one more step in our business plan to make Cielo world class.  We believe that joining the TSXV opens new doors for Cielo with respect to capital markets and exposure.”  Mr. Allan continued “The Canadian Securities Exchange has been a great way to access the Canadian public capital markets and has provided Cielo the opportunity to get to the commercial phase of our waste to renewable fuel technology at our fully operating commercial facility in Aldersyde, Alberta.  We now feel ready for the next evolutionary step to join a world class exchange that we expect will bring more awareness to the Company.”

A disclaimer was also issued in conjuction with this press release :
“Completion of the listing on the TSXV is subject to the satisfaction of listing requirements and the approval of the TSXV. There is no assurance that the TSXV will approve the listing application or that Cielo will complete the listing as contemplated.  In the meantime, Cielo’s shares will continue to trade on the Canadian Securities Exchange under the ticker symbol “CMC”.  Further updates will be provided as they become available.”

ESG Comment: 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 which will give the company access to larger and more differentiated ways to finance the rapid expansion towards 40 facilities in North America.


Link to original press release:
https://www.cielows.com/cielo-announces-intention-to-list-on-the-tsx-venture-exchange/

This is not to be considered financial advise, always do your own research!

Don’t forget to subscribe to this blog by pressing “follow” to receive news update as soon as they’re published!


News update Cielo Waste Solutions

Cielo Waste Solutions
Ticker: CMC.CN / CWSFF
Listings: Canadian Securitites Exchange / US OTC
Website:https://www.cielows.com/
Market Cap: 423 MCAD at time of posting
Share price: 1.20 CAD at time of posting
Industry: Converting waste to renewable fuel

Cielo Waste Solutions today 15/3 2021 announced an increase from $10 MCAD to $14 MCAD for the binding letter of intent for its convertible loan. The terms are the same as previous with the slight positive change that the extended loan’s possible convertible share price is 1.25 CAD compared to 1.02 CAD in the previous deal. The loan is non interest bearing and The Additional Loan Amount is also subject to transaction fees equal to CDN$280,000 and commission to a third party of CDN$320,000.

This financing will enable for the company to double the current production capacity from 1000 Liters (264 Gallons) per hour to 2000 Liters (528 Gallons) per hour for the Aldersyde plant in Alberta and for engineering work to be done at the new Edmonton facility.

Don Allan, President and CEO of Cielo, stated, “Cielo has hired a 3rd party Real Estate Appraisal company and is narrowing down the site selection in Edmonton and we hope to have the land purchased in the next few weeks.  This additional CDN$4M will also allow us to start the engineering and permitting process in Edmonton while continuing work on the Dunmore facility outside Medicine Hat, AB, and, with the increase, Cielo now sufficient funds to enable us to double the production capacity at the Aldersyde Facility. Cielo is grateful to be in a position of financial stability with good momentum.  Cielo has received attention from the financial community and, at present, we are fielding calls of interest from numerous companies and firms wanting to help take our company to the next level.  2021 has started extremely positive for Cielo and its shareholders and we believe the momentum will continue as we’ve reduced the hurdles in front of us.”

ESG comment: The upsized loan facility gives Cielo Waste Solutions a crucial momentum in its rapid expansion plan. The Aldersyde facility will now be able to double its production while at the same time engineering works can start at the Edmonton facility once the land purchase has been completed in the next few weeks. I’m very excited for what the remainder of 2021 holds for Cielo Waste Solutions!

Link to original press release:
https://ceo.ca/@thenewswire/cielo-announces-cdn-4m-increase-to-binding-letter

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.


This is not to be considered financial advise, always do your own research!

Weekly ESG portfolio update

ESG PORTFOLIO UPDATE

Performance last week : 2021-03-08– 2021-03-14

ESGFIREAT40 Portfolio: +25,76 % 
Dow Jones: +4,1 %
Nasdaq +3,09 %
OMXSPI:+ 3,12 %

Performance YTD:

ESGFIREAT40 Portfolio: +171 % 
Dow Jones: +7,1%
Nasdaq: +3,35%
OMSXPI: +12,47 %

Top performers:
Environmental Waste Internation $YEWTF / $EWS + 26 %
Grande West Transportation $BUS/$BUSXF + 24 %
Cielo Waste Solutions $CMC.CN / $CWSFF + 23 %

Underachievers:
Blue Bird Corp $BLBD -7 %
Absolicon $ABSL -2 %


Portfolio update comment:

The past week was a great comeback for the ESG portfolio and growth stocks. After losing almost 15 % the week before the portfolio soared back 26 %. An exception last week was that the performance was evenly split between several stocks and not just credited to Cielo Waste Solutions. Environmental Waste International had a great performance alongside Grande West Transportation. Personally I think all mentioned stocks remain attractively valued. As you can see in the picture above the portfolio is now at an ATH with both total value and performance higher than before the 10 year yield “crisis” which spooked many investors the past few weeks. For those of you who read my post about the market turbulence you will recall that I did not sell or reallocate my positions since I was pretty sure the yield curve turbulence was a temporary fluke.

The 10 year yield “ghost”

I still believe the yield curv “ghost” might come back to haunt growth stocks when and if the US 10 year yield continues to climb but this should hardly be a cause for concern and unless you’re a trader or have very low risk/volatility tolerance I don’t see any cause for preemptive action. Some believe there wont be peace in the markets until the 10 year yield hits 2 %. This turbulence makes it even more important to “know what you own” . The more you know what you own the higher conviction you can have during market turbulence which is exactly what helped me remain calm during the latest yield turbulence.

Graphic of the US 10 year yield below



Conclusions

Was this market turbulence stressfull for me ? Yes! Did it test my conviction ? Most certainly YES! But knowing what you own and making your own mind about what your portfolio company’s potential and value is will help you remain calm. As a friend of mine who is the author of the book “stock market psychology”usually says “ Activate system 2 ! This means using your reflective thinking”. Most people will only act with primal instincts during crisis which means the brain tells you to “survive at any cost”. This survival instinct often materialises as an action to sell all your stocks in panic so you can “save what can be saved”. As a disclaimer and exception however it must also be said that every situation is unique and there is no general rule that can be applied to all market conditions.

Don’t forget to subscribe to this blog by pressing “follow” to receive news update as soon as they’re published!


This is not to be considered financial advise, always do your own research!

Introduction to


Company: Absolicon
Ticker: $ABSL
LIST: Spotlight Sweden
MCAP: $33 MUSD at time of publication
Share price: 136 SEK = 16 USD at time of publication
Industry: solar thermal heating/ district heating
Market size: $223 billion$ by 2026

Bullside Target: 400 SEK[1]


[1] https://www.aktiespararna.se/sites/default/files/absolicon_q4_2020.pdf

A crucial fact often neglected by investors and decision makers  globally is that 50 % of the worlds energy consumption consists of heat for buildings, homes and other facilities.[1]

Absolicon has invented a patented cost effective solution that uses sunpower to create heat and works like a giant magnifying glass . It has 76 % optical efficiency which currently is the highest in the world.

Absolicon’s business model has two main revenue streams:

1.Sell production lines to local distributors (each costs ~ $5 MUSD
2.Reoccurring additional revenues selling patented materials (between $2-5 MUSD annually per production line) and also royalty fees (4%) on products made by distributor.

The company has three main markets as focus:

1.Factories for heat consumption
2.Destillation of water
3. District heating


Why should one consider investing in Absolicon now?

-Absolicon has seen the flow of customer requests increase exponentially due to the green wave in USA and Europe .

-13 frame works agreements done today compared to 3 in March 2020 .
-Each of these agreements are worth potentially $10MUSD plus reoccurring revenues. [1]

-Absolicons concentrating solar collector will be able to compete with natural gas prices

-As stated in the introduction Heat is about half the world’s energy consumption. Electricity is only 20 % of the worlds power usage , heat And transport is 31 % .The industrial sector uses about 1/3 of the heat power consumption globally and this is what Absolicon helps with .


– Absolicon has multiple large corporations in ongoing customer discussions as indicated in the picture below:



These are Absolicons conservative Goals for 2022 :

-Turnover of $12 MUSD (equals 2 production lines)
-Positive cash flow from selling production lines
– Listing at the main Nasdaq market in Sweden




Patent protection:

The company has Patent on materials (glass reflector and pipes ) and on tools for mass production and Can therefore not be compared to regular solar panels
It also has:
-Reflector film with high reflection and low price
-Anti reflective glass with self cleaning surface
-Receiver that does not release heat

Patent situation
10 different Patents
Utility models
Design protection
Trademark protection

Absolicon has also recently initiated a cooperation with Swedish export credit  which allows Absolicon to sell their customers equipment and materials on credit They can also sell complete sun catcher fields on credit . This is exceptionally favourable since the Swedish government backs this financing.[2]

Background on District heating / solar heating

Europe today has 6000 heat grids that uses coal gas and oil. The European Union has promised to quit using fossil fuels and what is at hand is mostly solar heating.

Half of Swedens buildings are run on district heating which can be replaced by Absolicon . France has 50-70 % investment support for solar heating and Germany has 20 cities that already has installed sun driven heat . Absolicons system gives  50 % more heat than traditional solar thermal systems at higher temperatures.



Project with Municipalities

 Absolicon has made an application to the Swedish energy authorities (energi myndigheten ) and in December 2020 they started building Sweden’s largest heat field for sun catchers 3000 square meters with an annual production of 1000 MWH. Both the energy minister and director of the energy ministry of Sweden participated in the ritual. This field is close to the corporate head quarters of Absolicon and can easily be used for customer demonstrations. Half of Sweden’s homes are heated with  district heating. According to SNF, an environmental NGO, 20% of the heat can be replaced by solar thermal (8 TWh). Below you will find an image of the heat field project which broke ground in december 2020. This project could be the main catalyst to gain more customers within municipalities.

Conclusion

Absolicon’s latest financing was early 2020 with the goal to open new markets  and they’ve so far been able to finalize 12 new framework agreements in 9 months to customers who wants to mass produce their product . The company has ongoing discussions with major corporations globally and it looks like its only a matter of time before several of their framework agreements materialise into real orders. I believe the delay in the conversion of these framework deals can partly be accredited to COVID-19 delays. Local distributors will likely want to build up their own order book before placing their actual order on the Absolicon system.
Absolicon has a patented and unique solution which can be used for Distric heating, water distillation and Factories for heat consumption .
As far as I’ve been able to identify Absolicon appears to have the best in class product on the market with the absolute highest optical efficiency at 76 %. The potential order value of the current frame work agreements signed with distributors amount to one time revenues of $65MUSD and annual reoccurring revenues between $39-$65MUSD. I also believe Absolicon also has a massive potential to sell their system directly to municipalities who want to use their system for district heating, they also have ongoing direct discussions with major corporations globally. With the green wave in Europe and USA it appears the future for Absolicon is very bright!


I own shares personally in this company .

This is not to be considered financial advice, always do your own research!


Don’t forget to sign up with your e-mail adress by clicking follow on this website to receive updates directly into your inbox.


[1] Calculated as $5 MUSD one time fee and $5 MUSD reoccurring revenues.

[2] https://www.svenskverkstad.se/solenergiforetaget-absolicon-visar-goda-resultat



[1] https://www.iea.org/reports/renewables-2019/heat and https://vimeo.com/392939877




Cielo Waste Solutions expands into the United states and additional Canadian site!

Cielo Waste Solutions
Ticker: CMC.CN / CWSFF
Listings: Canadian Securitites Exchange / US OTC
Website:https://www.cielows.com/
Market Cap: 360 MCAD at time of posting
Share price: 1.02 CAD at time of posting
Industry: Converting waste to renewable fuel

Cielo Waste Solutions today 9/3 2021 announced they are expanding into the United States and additional territories in Canada with their Joint venture partners. . The Memorandum of Understandings are signed with Renewable U Energy Inc. (“RUEI”).

 The MOU provides for Cielo to build, and commission, at no cost to Cielo other than internal costs, three (3) waste to high-grade renewable fuel facilities, one each in Winnipeg, Manitoba, Kamloops, British Columbia and a high-volume location to be determined in the United States (each a “Territory”, collectively the “Territories”).  Each Territory includes a radius of 250 km from the outer boundary of the named municipality.

ESG Comment: This expansion is where it becomes really interesting to calculate the future potential revenues for Cielo Waste Solutions. One time fees such as royalty fee of 7 % on 8 facilities adds up to $28 MCAD in total revenues for Cielo. Assuming all 8 facilities produce 12000 LPH and a run time of 11 months per year total output could reach 760 million liters per year ( 200 million gallons). Assuming a price of 1,67 CAD per liter that equals potential revenues of $1,27 Billion CAD annually. The production cost per liter is expected to sit at between 0,4-0,7 CAD per liter Assuming 0,7 CAD per liter thats a potential margin of $737 million CAD.

Cielo will receive a Joint Venture Fee of of CDN $250,000 per Territory, CDN $750,000 in aggregate (the “JV Fees”).  Cielo confirms receiving a deposit of CDN $250,000.  The balance is expected to be delivered on or before March 31, 2021.  
The terms for the Joint Venture facilities are such that “Once up and running, the revenue split is 70% to the JV partner and 30% to Cielo, until the build and commission costs are recovered, then converts to a 50/50 revenue share forward.”
Cielo will also receivea management fee of 7% on all capital expenditures related to the project costs for the first facility in each Territory including a markup of 30% on the catalyst used in Cielo’s proprietary process of converting garbage to high-grade renewable fuel. 


Renewable U Energy Inc. (“RUEI”) is expected to take over the rights from the other JV partner Seymour Capital explained in the press release as “Cielo has been advised by the principals of RUEI that, in order to accelerate and streamline funding of the Territories and the territories set out in the Existing MOUs (the “Existing Territories”, together with the Territories, collectively the “JV Territories”), RUEI has acquired all of the rights and obligations of SCI related to its Existing MOU related to the territory of Calgary, Alberta, as well as SCI’s option to acquire a territory in the Province of Ontario (to be determined).”

The most interesting statement is from CEO and President of Cielo Waste Solutions Don Allan stating: ““While we highly value our JV partnership with RUEI, Cielo can confidently source its own funds to build facilities in additional territories throughout Canada, the United States, and beyond.  For the time being we will not be considering any further JV agreements with existing or other partners.”

This can only be interpreted such that Cielo now has gotten to a point where they potentially may be able to fund their own facilities with perhaps green ow interest loans and/or government contributions.


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-expands-footprint-into-united-states-and-additional


This is not to be considered financial advise, always do your own research!


Major Breakthrough for Cielo Waste Solutions

Cielo Waste Solutions
Ticker: CMC.CN / CWSFF
Listings: Canadian Securitites Exchange / US OTC
Website:https://www.cielows.com/
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!

Exclusive interview with Investor Robert McWhirter on Cielo Waste Solutions

Cielo Waste Solutions
Ticker: CMC.CN / CWSFF
Listings: Canadian Securitites Exchange / US OTC
Website:https://www.cielows.com/
Market Cap: 307 MCAD at time of posting
Share price: 0.87 CAD at time of posting

An update on the Desulfurization process was provided by Cielo Waste Solutions on the 6/3 (Saturday) 2021 at the same time of this article being published .

“ Cielo’s lead engineering firm has built a desulfurization lab 1,000 times the size of the lab used at the University of Calgary.  Cielo provided to them renewable diesel and they were successful in reducing the sulphur content to 5ppm, well below the required limits.  We are very confident in scaling the process and have begun the fabrication work. “

Don’t forget to subscribe to this blog by pressing “follow” to receive news update as soon as they’re published!

ESG interviewed famous Small Cap investor Robert McWhirter on the 1st of March 2021 to talk about his largest investment which is Cielo Waste Solutions. Below you will find the transcript of our call.

ESG: To those of our readers who don’t know you could you give us a short summary of your background?

Robert: Over 25 years ago I was  a private client fund manager in charge of 100 million CAD. I’ve also worked as a portfolio manager with institutional management and ran a fund with 6.25 billion CAD during the internet era.

Our returns were 70% compounded over 3 years. Seven years ago I decided to start managing my own money exclusively so now I run our family office. It was actually my wife who said ,“Bob you’re great at picking stocks why don’t you do it for us exclusively?”.

Today I get invited to discuss stocks on BNN Bloomberg TV and it is fun to share my insights on small cap Canadian: industrial, technology and healthcare stocks. I do not give recommendations, only insights.

ESG: Could you explain to my readers how you came to the conclusion on the $8 CAD target price and on what time span is that target price made ?

Robert: My insight, it’s NOT a recommendation, is that Cielo could reach $8 CAD within the next 12 months.

ESG comment: This interview was done before Cielo announced the 10 million CAD loan for the new Edmonton facility and also before the update provided above on the Desulfurization process .


Robert Continues: The Aldersyde facility might, by my calculations produce $11 million CAD in EBITDA in 2021 with a run rate by producing 1000 LPH (LPH=Liters per hour , 1 liter = 0.26 gallons) .The potential doubling of capacity at Aldersyde might take that to 2000 LPH for potentially $ 20 million CAD in annual EBITDA.

Cielo has joint venture partners ready to build 5 facilities at $50 million CAD each and $250 million CAD in total. Cielo is expected to receive a 7 % construction royalty on that capex which equates to $8 million CAD per year. Together with the other $20 million we are looking at close to $30 million CAD in potential  EBITDA .
With a 15 times EBITDA multiple, on that you get a potential $450 million CAD market cap.

If you then look at the 5 joint venture plants producing 10,000 LPH that’s about 400 million liters a year or 105 million US gallons per year . One gallon of renewable diesel is about $6.68 CAD ($1.67 CAD per Liter) equalling a total potential revenue of $668 million CAD per year. Cielo is expected to receive 30 % of the profit on these 5 plants until they’re paid off and doesn’t have to invest any money since that’s provided by the joint venture partners. After the facility is paid off Cielo is expected to get 50 % of the profit.


We still haven’t taken into account Cielo’s own planned  Edmonton facility which is expected  to bring in revenues of $55 million CAD per year that Cielo plans to own without joint venture partners.


The demand is clearly there for Cielo’s products. Barclays has stated that there is a demand of close to 700 million liters (185 million gallons) of renewable diesel in Canada alone. That equals 22 potential Cielo plants to put 2 % renewable diesel into Canada’s on road diesel fuel market.


Don (CEO of Cielo) has said he gets calls every day to build plants around the world so clearly there appears to be global demand!

ESG: Do you think Cielo will have analyst coverage soon?

Robert: Yes, I’ve been encouraging an analyst to get this on their radar. Similarly, I had to encourage an analyst to initiate coverage when Xebec was 40 cents a share (currently trading at $7 CAD)


ESG: Do you think someone would want to buyout Cielo?

Robert: Definitely, if so I think it would be done by GFL ,Chevron, Exxon, Shell or BP. Most likely one of the bigger oil companies since they can afford to pay a premium. This might happen within 3 years.  Cielo could also be bought out by a big waste management company who would use Cielo’s technology to eliminate the tipping fee paid for landfill. That would be a significant competitive advantage. For a waste management company that could offer this to every municipality would love them! Oil companies could potentially buyout Cielo since they could then potentially offer a green diesel solution where they take all plastic, garbage, all paper and maybe even (soon) human waste and turn into a raw material source for biofuel.

ESG: Why do you believe Cielo a better opportunity than its comparable GEVO?

Robert: The BIGGEST difference is that Cielo’s capex is estimated to be 1/10th that of GEVO’s $700 million USD for their planned South Dakota plant to produce the SAME volume! GEVO uses crops using farmland. Cielo only uses waste material taking care of two problems at the same time, creating renewable fuel while removing waste.
GEVO’s business model appear smart as they describe “we take the corn and take out carbohydrates to produce our fuel and, the rest used for cow food.”

ESG: I’m sure all of my readers would like to know how did you find Cielo Waste Solutions and what made you invest in the company?

Robert: I meet many companies, usually around 10 per week. During COVID it’s done with online meetings instead of physical ones. There are not a lot of high profile smallcap investors in Canada today, there’s probably less than 10 of us. If someone wants to raise money it’s a short telephone list. Cielo is not an overnight success, it has been 16 years in the making and the technology has cost 75 million CAD to develop.  I have followed Cielo for about 10 years before I recently decided to invest in the company after doing extensive due diligence. I was an early investor in Xebec ($XBC) which takes methane gas out of landfills. I also have a strong technical background and worked 3 years in a machine shop after high school.


Because Cielo wasn’t sure how to resolve some technical issues 10 years ago, there are some people that might have lost money back then. However, that is now history and the recently patented technology has significantly improved.


Cielo solves a worldwide problem with waste and landfills. For example, 3 years ago China and India said they wouldn’t take any more plastic (from Canada and USA). Unfortunately most of the curb side residential recycling in Toronto goes straight into a landfill without any recycling as there is no market for a lot of the material. This is also the truth for many places in USA.

There are 7 different kinds of plastic and Cielo says they can take all types of plastic, cardboard and more which they turn into fuel which could be a revolutionary technology.

ESG: What do you tell people who think Cielo’s technology isn’t working?

Robert: Cielo has many competitors who want to do the same thing, to take plastics and produce some sort of fuel. I reviewed Cielo’s patents last summer and this was after I decided to start investing in Cielo.

The technology to potentially reach the target of 15 parts sulphur per million in the fuel has been developed with University of Calgary over the past 2 years. Don ( CEO of Cielo) had an open house for a lot of politicians last year at the facility in Aldersyde, near Calgary, and showed them the business in all aspects. About a year ago Canadian Pacific Railways said that if the process works that they will deliver  250, 000- 1 million railway ties per year to produce renewable fuels. Cielo is currently waiting for approval to test railway ties on a larger scale. I personally don’t see any technical issues as to why this wouldn’t work.


ESG: How do you normally pick your investments?

Robert: I’m extremely detailed when I conduct my due diligence. When companies try to pitch me new ideas, I go in depth to see if their business plan appears viable. It’s all about management really. Cielo did not have previous success until recently. ,  Cielo has invested 75 million Canadian dollars into their business so I had to ask myself at what point do I invest? That time was last spring.


ESG: How do you view the close term outlook for Cielo?

Robert: I think 2021 could be the big catalyst year for the company. Management is very hands on and are problem solvers. They know exactly what needs to be done and how to get there in time and are now even ahead of schedule. They’re now planning to double the production capacity at Aldersyde to 2000 litres per hour. Its not rocket science, it is basic science and they know how to get it done. About a year ago, I saw a 10 X bigger opportunity with Cielo than I did with Xebec and so put my profits into Cielo. Cielo is our largest position. Cielo claims to be able to take all plastics, landfill, railroad ties and more which they convert into renewable fuel. If this all works, it would appear to be in the very early days of Cielo’s growth.

ESG: What do you think speaks for Cielo compared to its competitors and how do you think they will be able to finance their expansion of 40 plants in the next 5 years?

Robert: Cielo has 2 outside financers who want to build 5 plants. Don (CEO of Cielo) has told me that they hope to have 35 more plants that would built on the same terms within 5 years. After the facilities are paid off Cielo is expected to receive 51% of the profit. The Edmonton site might be a bit more expensive as Cielo will likely need to build railway spur lines to get the feedstock delivered.


The Aldersyde facility expansion is expected to cost about $8 million CAD to upgrade from 1000 LPH ( 264 gallons / hour) to 2000 LPH (528 gallons/hour). Construction of Cielo’s Edmonton plant could begin as early as spring of this year (2021) (site preparation). There appears to be enough garbage in Edmonton to support 3 plants so the feedstock should not be a problem. There is also a close supply of railroad ties. Edmonton appears to be a great place for this facility since it’s a hub for petrochemicals and refineries.


ESG: What do you think is the biggest risk with an investment in Cielo and are you confident they will solve the desulphurization process?


Robert: The number one risk occurs if they cannot get the sulphur level down to less then 15 PPM. However, jet fuel can have much higher sulphur content so there could be demand for a higher sulphur content product. I do not expect Cielo will fail with the process since the desulphurisation has been lab tested BUT this needs to be scaled up to a much larger size. The total addressable market is significant.  Blending biodiesel for Canadian road use needs 680 million litres of diesel per year (180 million gallons). At a price of about $1,7 CAD per litre = $1,1 billion CAD market in Canada alone. The main advantage of Cielo’s solution is you can use the existing diesel fuel delivery infrastructure. Other catalysts other than the desulphurisation is getting more raw materials to be approved as feedstock.

ESG: Thank you for joining us Robert and we hope to have you with us soon again!

Robert: Thank you, my pleasure!

ESG comment: Cielo Waste Solutions remain our largest position in the portfolio and I’m confident that the company is on a positive path towards commercial success.


This is not to be considered financial advise, always do your own research!

My thoughts on the market Turbulence

So why are the markets falling? The federal reserve bank in USA controls short interest rates but the market controls among other the 10 year yield . Anticipated growth and inflation has pushed 10 year yield higher meanwhile it’s closed the gap to the yield on stocks on the big USA indexes causing selling pressure.


I think this will calm down soon for several reasons . We are still not even near the recovery in the global economy that the worlds central banks want to see . The FED can also stimulate long yields by buying bonds . Mutual funds sell  temporarily because they get outflow not because they believe in a crash. 


We have MASSIVE GREENS DEAL in BOTH Europe and USA which hasn’t even begun yet Will this be enough ?
WELL unless M.r Biden wants his term destroyed by a market crash (which is too big to fail and will get him bored out of office) we’ll likely see pressure on FED To act

So if you don’t know why you’re selling . REFLECT . The world isn’t ending and the future for growth stocks certainly hasn’t either . 


We’re likely just at beginning of a new green super cycle!

Good video below 


https://t.co/ZzASrFuFmc?amp=1

Major news update for Cielo Waste Solutions

Cielo Waste Solutions
Ticker: CMC.CN / CWSFF
Listings: Canadian Securitites Exchange / US OTC
Website:https://www.cielows.com/
Market Cap: 340 MCAD at time of posting
Share price: 0.99 CAD at time of posting

Our biggest portfolio holding Cielo Waste Solutions today (3/3 2021) announced that they have acquired an interest FREE loan of 10 million CAD which will be used to buy a site near Edmonton Alberta for Cielo’s planned 100 % owned waste to high grade renewable fuel facility (“Edmonton Facility”). The factory will be able to generate annual revenues of 55 million CAD once completed. Cielo writes the following in the press release:

“This marks the beginning of Cielo’s expansion plans which is ahead of its previous schedule. Cielo will have the discretion to use the balance of the funds as needed, for working capital purposes, and to repay in whole or in part Cielo’s largest secured lender, which is currently owed approximately CDN$3.8 Million.  “

The terms for the 12 month loan are impressive for a company of Cielos size, no interest is payed and the loan may only be converted into shares at a price per share of 1.02 CAD . Also Cielo has the right to repay the loan at any time during the 12 month agreement. The only drawback is that Cielo is required to pay a transaction fee of 700 000 CAD and also commission to a third party amounting to 800 000 CAD.


Cielo comments on this transaction in the press release: “Cielo believes these fees and commissions are well in line with industry standards and eliminate high interest payments and saves Cielo millions in debt payments without significant dilution of the company shares with an exceptional conversion strike price.”

CEO of Cielo Don Allan Comments on the transaction:

“To be able to purchase this land for cash and no mortgage allows Cielo the ability to choose numerous options to raise the $50 million for the construction of this facility and the extra money required to prepare the land. The plant will initially be engineered to produce annually approximately 33 million liters of high-grade renewable diesel which at todays prices is approximately CDN$55 million in annual revenues. The land is large enough to allow for multiple expansions. Cielo is having an amazing start to 2021 and is poised to continue strong growth on all fronts.”

I certainly agree with the statement from CEO Don Allan And Cielo confidently remains our largest portfolio position by a far. Cielo is one step closer to becoming a multi million dollar business.


If you missed it check out Robert Mc Whirters discussion on Cielo from BNN on 26/2 2021 where he puts an insight that the company’s share price could be worth 8 CAD .
Link: http://www.bnnbloomberg.ca/market-call/robert-mcwhirter-discusses-cielo-waste-solutions~2149646

Link to press release from 3/3 2021 :
https://ceo.ca/@thenewswire/cielo-announces-letter-of-intent-for-cdn10m-convertible

 As always do your own research and this is not to be considered financial advice.

Robert McWhirter which gave Cielo a price target of 8 USD when we visited BNN (link to interview: http://www.bnnbloomberg.ca/market-call/robert-mcwhirter-discusses-cielo-waste-solutions~2149646).

Quick Introduction of

Company: Environmental waste international
Ticker: $EWS
Listing :TSXV
MCAP: 47 M$
Business: Tyre and waste recycling through reverse polymerization
TAM Market size: 158 billion $
Comparable peer : Scandinavian Enviro systems $SES
Upside to peer evaluation: 429 %
Website: https://www.ewi.ca/
Stock price at time of writing: 0.24 CAD

Upcoming catalysts:
-EWS is currently working on a number of plant sales with both public and private entities in Canada, Australia, the UK, Nepal, India, Denmark and Italy. The Company is also evaluating a number of potential partners in China. ( see sources below)
-Improved investment relations strategy

Environmental Waste International (EWI)has developed a patented ground breaking recycling technology for the latest 15 years which is now about to become commercially viable. I have written about this company before on my twitter page but I wanted to give a brief introduction to the company here for you fellow blog readers.

EWS develops environmentally friendly products for waste treatment and disposal. Its predominant focus is on recycling waste rubber, primarily tires, into valuable by-products which can be sold and reused.The Company has built a full-scale Pilot Plant Tire System.

The system breaks the molecular bonds in tires and other rubber products, reducing them to their base components of carbon black, steel and hydrocarbon vapors. An off- gas system processes the vapors to recover the oil, the remaining gas is used as fuel for the plant .Governments and industries worldwide recognize the need for technology to deal with the processing, treatment and eventual disposal or recycling of tires and other waste rubber products in a environmentally safe manner. EWS provides unique and effective solutions this problem. EWS business model is to both sell plants and earn royalty on the commodities that these plants produce . This will make way for a very good mix of both one off sales and reoccurring revenue streams .

In addition to tires, EWS has designed solutions for the safe disposal, recycling and/or recapture of useable byproducts for the following waste streams:
•Liquid Biological Waste Systems;
•Food Waste
•Medical Waste
•Animal Waste

Conclusion

EWS has a ridiculously low market cap for a company which already has an order of 100 million dollars . EWS has crossed the barrier towards becoming commercially viable and the risk is considerably lower than for its competitor $SES. $SES does not have any real revenues yet. I beleive this is a REAL ESG investment which mutual funds and other institutional actors will race to become shareholders in once the market cap becomes big enough which we believe is only a matter of time . Hence I’ve made EWS our TOP 3 BIGGEST investment along with Cielo waste solutions.

EWS has recently won an order worth 100 million USD from Windspace in Denmark which will build the first large commercial plant for EWS in europe. EWS is on the verge of commercialization breakthrough but this has yet to be reflected in the stock price . When comparing with $SES Scandinavian enviro systems my insight is that there could be a 400 % upside from current levels.

The EWI customer Windspace has already gained environmental permits and financing for its first factory in Denmark with construction beginning in 2021 . This news has yet to be acknowledged by the stock market. Windspace has also invested in EWS as a shareholder . Windspace has even said in a podcast that they chose EWS technology over Scandinavian enviro systems because the technology is BETTER. Windspace were originally going to partner with Scandinavian enviro systems!

Tire recycling plants using EWS’ technology do not require tipping fees, carbon credits or other government support to generate a compelling ROI which makes it standout from its competitors.





Markets sub Categories
90 billion- Liquid waste
50 billion USD -Food and animal waste,
9.5 billion USD- Tires
9 billion USD – Medical waste

This is an introductional post. Further detailed analysis will be done coming up. I wanted to share this NOW with you readers since the technical chart looks like the EWS stock might be poised for a breakout. As always do your own research and this is not to be considered financial advice.

Sources :
https://marketscreener.com/quote/stock/ENVIRONMENTAL-WASTE-INTER-10432205/news/Environmental-Waste-International-EWI-MDA-Sept-30-2020-31873217/…
https://green-giraffe.eu/projects/elysium-nordic… https://elysiumnordic.com/news/6?locale=en…
https://ewi.ca/the-tyre-recycling-podcast-episode-10-business-witness-jens-elton-andersen-and-lvaro-silva.html…
https://ewi.ca/environmental-waste-international-announces-partnership-to-enter-the-european-market.html…