CHAR Advances New Biomass to Renewable Natural Gas Project potential Revenues 18 MCAD annually

Company: Char Technologies Ltd
Listing: TSX Venture, US OTC
Tickers: $YES.V / $CTRNF
Market cap: 60 MCAD at time of publication
Share price: 0.85 CAD at time of publication
Comparable peers:
Xebec, $XBC Market cap $433 MCAD
Greenlane renewables, $GRN, Mcap $225 MCAD

ESGFIRE comment:
We estimate that the Kirkland Lake project could generate up to 18 million CAD in potential annual revenues for Char Technologies. We base this on a price per tonne of 300 CAD for Cleanfyre (one(1) ton of Cleanfyre reduces GHG emissions by three (3) tons.”) and a price of 30 USD per GJ of RNG. We anticipate the margins will be good for this project at around 50- 80 %. We are excited to follow the next step for this fully owned facility of Char Technologies. Our initial analysis of Char Technologies can be found HERE.

TORONTO, Oct. 28, 2021 (GLOBE NEWSWIRE) — CHAR Technologies Ltd. (“CHAR” or “Company”) (YES – TSXV) is pleased to announce the commencement of surveying and geotechnical testing at the proposed site of its woody-biomass to renewable natural gas (“RNG”) High Temperature Pyrolysis (“HTP”) project near Kirkland Lake, Ontario. This project will potentially produce 500,000 gigajoules per year (GJ/yr) of RNG, and 10,000 tonnes per year of CHAR’s proprietary CleanFyre biocoal (“CleanFyre”). The Kirkland Lake project will be designed, built, operated and owned by CHAR.

The Company had previously entered into a land purchase option agreement (July 2, 2021) with the town of Kirkland Lake with respect to the proposed project site, as well as a letter of interest (July 9, 2021) for biomass supply to the project, and an exclusive letter of interest (September 16, 2021) with a Canadian gas utility for long term RNG offtake. It is anticipated that an offtake contract will be finalized by early 2022. CleanFyre from the proposed Kirkland Lake facility will be earmarked for future sale to the steel making and metal smelting industries.

Andrew White, CHAR CEO states; “We continue to gain market penetration and interest through the demonstration of our proprietary HTP systems and its solution for reducing greenhouse gas emissions. As society recognizes the value of converting low-value by-products and waste materials to valuable clean energy sources, that we can transition to a circular economy. Renewable Natural Gas is CHAR’s next vertical in line with our current business objectives.”

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