Cielo Waste Solutions
Ticker: CMC.CN / CWSFF
Listings: Canadian Securitites Exchange / US OTC
Market Cap: 326 MCAD at time of publication
Share price: 0.84 CAD at time of publication
Industry: Converting waste to renewable fuel
Cielo Waste Solutions today 7/4 2021 announced the very positive news that it has received a conditional grant from Alberta Innovates in the amount of $500,000.00 toward a nearly $900,000 commercial demonstration of the use of used railway ties as a feedstock at its flagship facility in Aldersyde, Alberta.
Cielo Waste Solutions stated that they right now have a feedstock agreement with a large Canadian railway company that is looking for a more renewable and circular economy to dispose of their used railway ties. The company stated that the current feedstock agreement is for up to 1,000,000 used railway ties per year with incentives in place to increase this number.
The company has a clear plan to scale up the demonstration “Cielo’s engineers have been working since last fall to complete the material testing, bench-scale trials and process modeling that will help facilitate approval from AEP. Cielo intends to then implement a 100 tonne demonstration, followed by a larger 500 tonne demonstration. The timeframe for the demonstrations and analysis is anticipated to be approximately 3 months.”
The application was apparently done last spring of 2020 and if this demonstration goes well it will allow Cielo to produce renewable fuels from used railway ties on an ongoing basis.
Don Allan, President and CEO of Cielo, stated in the press release “We believe that the eyes of the Railway Tie Association are on us to see these results and that, when successful, Cielo will have the most environmentally friendly solution for 10’s of millions of used railway ties per year from all across North America. Currently, many used railway ties are being incinerated by cogen facilities for power but already some states in the US and provinces in Canada are banning the incineration of these ties due to potential toxic ash and other harmful emmissions. Cielo is proud to have developed a process that does not currently have any toxic waste or emmissions “
Support was also shown by The Honourable Finance Minister of Alberta, Travis Toews which stated “I am pleased to hear that Cielo Waste Solutions Corp. has been awarded a CDN$500,000.00 conditional grant from Alberta Innovates. This funding will support Cielo as it tests its ability to utilize materials in its process to create renewable fuels. Cielo is a great example of the innovative and entrepreneurial spirit of Albertans. I am eager to see this Alberta based company expand their operations in the province and contribute to Alberta’s economic recovery.”
ESG comment: This conditional grant and the details of the feedstock agreement with a very large canadian railway company ( which I suspect is Canadian Pacific Railway) gives both credibility and financial stability to the continued operations of Cielo Waste Solutions. With this large feedstock agreement in place and if the demonstration succeeds this will provide yet another continued flow of feedstock for the ongoing operations and expansion plan. To have the financial support and blessing of the provincial government will last a long way to execute the company’s plans to build 40 facilities in a 5 year time plan!
I own shares in these companies personally and this is not to be considered financial advise, always do your own research!
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