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CHAR Technologies – Decarbonizing for a Circular Economy

Company: Char Technologies Ltd
Listing: TSX Venture, US OTC
Tickers: $YES.V / $CTRNF
Market cap: 45 MCAD at time of publication
Share price: 0.64 CAD at time of publication
Website: https://www.chartechnologies.com/
Comparable peers:
Xebec, $XBC Market cap $642 MCAD
Greenlane renewables, $GRN, Mcap $210 MCAD

Short summary:

We are initiating coverage on the Canadian cleantech company Char Technologies which is the leading cleantech and environmental services provider when it comes to converting woody materials and organic waste into renewable natural gases (RNG), hydrogen and biocarbon. They are thereby taking care of existing waste and turning this into valuable commodities.  Char technologies is converting challenging organic streams into greenhouse gas neutral biocoal, second generation Renewable Natural Gas”(RNG)” and hydrogen.

Some of the company’s competitors such as Xebec & Greenlane renewables both participate in first-generation anaerobic digestion (biogas) technology , Char technologies has what is known as second generation biogas technology .

Char Technologies currently has proposals out for over $100 million in projects and consulting activities. They also have a strong balance sheet with NO Debt ,a current burnrate of 2 million CAD per year, and a market cap of only $45 million CAD!


Stock history background:

Char technologies
went public in March of 2016 through a qualifying transaction with a capital pool company with an IPO price of $0,17 CAD.
The stock has had tremendous success during last 12 months with an increase in share price of 436 %. We believe however that the journey has only just begun since the evaluation is still at a nano cap level of only 45 MCAD and especially considering the huge current pipeline of projects the company has coming valued at over $100 Million . The pipeline consists of about 70 % systems sales and 30 % consists of building own operating facilities.

Company structure:

Char technologies consists of the two subdivisions Altech and Chartech Solutions .
Altech is an environmental consulting division that focuses on environmental solutions mainly towards industrial clients. A few of the services worth mentioning include environmental audits, ESG public reporting ,wastewater management and regulatory services.


Chartech Solutions is the division focusing on the company’s High Temperature Pyrolysis technology, and the biocarbon product from the technology called Cleanfyre which is a carbon negative emissions biocarbon that can replace regular coal in power plants. Biocarbon can also be used for agricultural improvements but this is not an area that Char technologies is pursuing at this moment. The production process also produces second generation of natural gas and hydrogen. The technology has been validated and tested for over two years and management is confident that the time is right for large scale operations. [1]

We believe that Chartech Solutions is the subdivision that will bring in most revenue for the company for a foreseeable future.


[1] SOURCE MANAGEMENT’S DISCUSSION & ANALYSIS FOR THE QUARTER ENDED: MARCH 31, 2021 Page 5

Giant Market opportunity for Cleanfyre:
The product Cleanfyre (biocarbon) from Char Technologies has the massive potential to replace the fossil fuel of natural coal in power plants and transportation. The global coal market alone is worth an estimated $366 billion USD and this is something that Char Technologies is aiming at taking a big stake in. The biggest advantage of the biocarbon product is that it does not require any change in the existing infrastructure of coal power plants and this is a BIG deal since the capex cost of these facilities generally is VERY high. Secondly the biocarbon from Char technologies is carbon negative . To quote CFO Mark Korol “ one ton of coal replaced with one(1) ton of Cleanfyre reduces GHG emissions by three (3) tons.”


Why is this of interest you may ask? Coal is today the SINGLE largest emitter of Carbon dioxide (CO2) into the atmosphere. Although China is by far the largest user of Coal approximately 62 percent of the electricity in the United states today comes from burning fossil fuels, mostly coal and natural gas. Burning one tonne of natural coal actually releases as much as 1892 kilograms of CO2 , the use of Coal has to be drastically reduced if the world is going to reach the goal of being Net-zero emission by 2050. In Canada (the home market of Char Technologies) the government has passed legislation which will increase the price of releasing CO2 per tonne to 170 CAD by 2030, today the price is 40 CAD per tonne. Canada today alone consumes close to 50 million tonnes of coal per year.



Many other governments around the world are following Canadas path of taxing coal consumption with the European Union being the pioneers and especially Sweden which has the highest carbon tax of the European Union with 108 Euros per metric tonne of CO2.  In the United states there are currently 11 states that have implemented carbon pricing, there is currently however no government to implement it on a national scale although it’s not a far fetched thought that this soon could become a reality with the new Biden administration. There is also a possibility of selling carbon credits on the open market as revenues if a customer of Char Technologies does not need all of the credits that they are eligible for. In conclusion the worlds energy consumption of coal is under harsh pressure by legislation and Char Technologies has the chance to provide many businesses and industries with a revolutionizing product that actually will be cheaper than regular coal.
It should also be mentioned that Char technologies produces both hydrogen and renewable natural gas in their pyrolysis process thanks to the high temperature. These are valuable by-products that can be sold to add extra revenues .Since the sales of biocarbon gives good revenues to Char Technologies they are able to sell the hydrogen and renewable natural gas produced at a very competitive pricing which improves the payback time of their plants considerably. The world will need 80 % of its renewable natural gas from this type of pyrolysis technology if it’s to meet the 2030 green target according to a study commissioned by Énergir. Another very positive side effect of the production process is that when processing biosolids the companys pyrolisis system destroys harmful PFAS particles in the waste/sludge from wastewater that is processed. These PFAS particles are a major concern in many countries!


Pricing model for biocarbon

The global coal market is segregated in terms of coal types and prices. Prices have plummeted due to Covid-19 and prices today vary from 40-125 $USD per tonne however this does NOT include carbon tax which differs between 30-150 USD per tonne globally. Typically industrial users will utilize a blend of different grades of coal.  The biocarbon from Char Technologies has a very high energy density this means one tonne of Cleanfyre can replace 1,1 tonnes of high-grade coal which typically is priced at $100-$125 per tonnes not including carbon credits.


The actual emissions of carbondioxide (CO2) for burning coal is the following simplified equation:

1 tonne of anthracite (fossil) coal consumed = 2.9 tonnes of GHG/CO2 released

1 tonne of CleanFyre consumed = 0.27 tonnes of GHGs (CO­2) released

1 tonne of CleanFyre replaces 1.1 tonnes of coal, so 1 tonne of CleanFyre can therefore reduce net GHGs by 2.9 tonnes.


The actual pricing in Canada of high-grade coal due to CO2 emissions equals $216 – $241 per tonne compared to 250 $ per tonne for Cleanfyre including carbon credits. As we previously stated the current tax credit for CO2 emissions in Canada is 40 CAD per tonnes but this is set to increase to 170 CAD by 2030. Therefore Cleanfyre from Char Technologies will become CHEAPER than regular coal already by 2022 with added ESG benefits. If you instead look at Sweden, in the European Union , Cleanfyre is actually CHEAPER today since the total price the product in Sweden equals $283 CAD per tonne including carbon tax credits.
In conclusion Cleanfyre from Char Technologies is today only slightly more expensive than regular coal but is set to become cheaper and with very good ESG benefits for coal consumers and therefore already by 2022 it will not make sense for producers to use regular coal over Cleanfyre.

Business model:
Char Technologies plans to both operate their own pyrolysis facilities and to sell their system for the production of the biocarbon product Cleanfyre. The company also sees opportunities for Joint Venture agreements for pyrolysis plants both domestic and abroad. There may also be revenue from recurring service and monitoring contracts and recurring biocarbon management fee. The purchase price for a customer of a facility that is capable of producing 25 000 tonnes of Cleanfyre per year ( and 500,000 GJ/yr RNG) amounts to ~30 million USD. The potential revenues for a facility of this size equals upwards of 25 Million CAD annually with good margins (50-80 %). This includes revenues from both Cleanfyre and the sale of the renewable natural gas or Hydrogen which is created in the manufacturing process of the biocarbon. The CAPEX for building a fully owned facility of 25 000 tonnes is about 30 million CAD.  According to the company the payback time on the capex can be as fast as 2 years.

Char Technologies Pyrolisis device


Intellectual property protection

Char Technologies, according to CEO Andrew White, has “a very defensible intellectual property position”. They believe they have protected how  to convert their feedstock into Cleanfyre, Hydrogen and renewable gas. The company also believes it would be very time consuming and costly for someone to even try to copy what they are doing.


Char technologies currently have 10 patents protecting their “recipe book” and also more patents have been filed.

Competitors
According to CEO Andrew White the big differentiator for Char Technologies is that their pyrolisis system runs at 800 degrees Celsius, this is hotter than other pyrolysis plants, which allows them to create both biocarbon (cleanfyre) and also extract renewable natural gas /hydrogen.

The company has different competitors in different product segments.
For renewable natural gas there are many actors active in this segment such as Xebec. However Char Technologies has the advantage of being able to price their hydrogen and renewable natural gas at very competitive pricings as it’s a biproduct of the biocarbon production.

Looking at biosolids (biochar) there is, as far as we have found, only two commercial scale competitors in the United states.[1] One of these competitors is BioforceTech. The maximum output from a plant from BioforceTech  with a solid content of 95 % appears to be 7600 tonnes per year, in comparison Char Technologies plan to have an output of 25 000 tonnes per year for their upcoming facility. The largest competitor for Char Technologies for biocarbon in North America appears to be National Carbon. They claim to have the largest advanced biocarbon production facility in North America with capacity to convert hundreds of thousands of tons of biomass into patented carbon products, there is however no public information on their revenues or pricing. The market should however certainly be big enough for more than one big biochar actor.

CEO Andrew White of Char Technologies mentioned during our latest interview that they are not aware of any competitor that produces BOTH biocarbon AND renewable natural gas and we have yet to find anyone either. ESGFIRE has found two competitors mentioned above who produce biocarbon for coal plants and we have also found other potential biocarbon competitors such as bcbiocarbon and AIREX energy however these two companies do not appear to create high energy density coal and they do not appear sell their products to steel producers but instead they appear to be more focused on agriculture.

Risks
Char Technologies is not yet a profitable business and as such there are a number of risks that have to be addressed. Burnrate and financing risks is one main aspect. The company raised 6 million CAD in February of 2021. The warrants attached to the financing if they all are excercised will add another ~3,7 million CAD . As of March 31st the company was sitting at a cash balance of close to 6 million CAD. The company appears to have a pretty low burn rate of about 500 000 CAD per quarter. Assuming this does not increase the company should be fully funded (not taking into account larger projects) until Q3 of 2022. We think however that the company does have plans to soon build their own 25 000 tonnes facility so they will likely will be looking to take in more capital within the next 6-12 months. Most likely the financing of the 25 000 tonnes facility will consist of a mix of debt and equity. If the company is unsuccessful in funding their expansion it could pose a serious risk for the expansion plans. This risk could however be outweighed by a potential Joint Venture partnership should the company not be able to raise all funds needed by themselves. A joint Venture project for the 25000 tonnes facility could also be a way of expanding without further dilution. There are no known issues with the scalability of the biocarbon product Cleanfyre as of today, infact the company recently announced a 1000 tonne breakthrough order from one of Canada’s largest steel producers. The breakthrough order was a result of a  successful pilot production run of 20 tonnes. However, should there be any unexpected problems with the scalability of Cleanfyre then this is a risk that could severely impact the company’s revenue streams. As we have mentioned in the competitor section there is no extensive competition in the field today, putting price pressure on the biocarbon market. Should more serious competitors arise with access to better financings then this could pose a serious threat to the company’s expansion plans. However, it should be stated that there is likely room for more actors in the biocarbon business seeing as in Canada alone there is a need for close to 50 million tonnes of coal per year . One final longer term risk that should be mentioned is the possibility of steel refineries completely abandoning furnaces and switching to other types of energy sources such as hydrogen or other gasification processing.


Upcoming catalysts


There are a number of upcoming catalysts for Char Technologies. The company’s pilot plant today has a production capacity of 5 tonnes of Cleanfyre per day totalling a potential revenue of 900 000 CAD per year. Short term catalysts could be more orders for the BioCarbon product Cleanfyre and also clarification on when and how the company aims to begin construction of their planned 25 000 tonnes facility.
Medium term catalysts could likely be Joint Venture partnerships for co-owned facilities and long-term catalysts are likely licensing agreements to international partners for the patented production methods as a way of expanding internationally without the need for use of own capital expenses.

Conclusion and summary

Char Technologies is, as far as ESGFIRE can tell, the only publicly listed and investable company which produces both Biocarbon, Hydrogen and Renewable Natural Gas. The company appears to have a cost competitive and scalable product which, if the business plan is executed properly, has enormous growth potential. Assuming the company is able to take a 10 % market share of its domestic market it could equal revenues of $1.25 billion CAD with margins likely ranging between 50-80 %. This could in turn lead to an EBITDA profit in the range of 500-600 million CAD. The interest for ESG investments has exploded during 2020-2021 and the company should, in our honest opinion, have little trouble in attracting more capital to finance both their own facilities and also be able to find a Joint Venture partner for co-owned facilities where they won’t be forced to put in capital expenses to the same extent. There are also very exciting opportunities in licensing out their technology to third parties on other continents around the world.

Finally, the fact that on a global scale the world will need 80 % of its renewable natural gas from either gasification or pyrolysis is a huge competitive advantage for Char Technologies as they are able to offer very competitive pricing on their RNG and hydrogen thanks to the great pricing model of their biocarbon product. We think Char Technologies has a very exciting and bright journey ahead and we look forward to keeping our readers updated on their progress.

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.

 


Vicinity Motor Corp Announces Partnership with Danfoss Editron to Power Next-Generation Medium Duty Vicinity Lightning™ EV Buses

Company: Vicinity Motor Corp(formerly Grande West Transportation )
Listings :TSXV , US OTC SOON to be up listed at Nasdaq
Ticker: VMC.V (previously BUS ,BUSXF at US OTC
Market cap at time of publication: $202 MCAD
Stock price at time of publication: $6,76 CAD ( reverse split price 2,25 CAD)
Business: Leading supplier of electric, CNG, gas and clean-diesel buses for
both public and commercial enterprise use in the U.S and Canada
Comparable peer : Greenpower Motor , Market cap $500 MCAD
Website: https://www.grandewest.com/

Vicinity Motors Corp today (16/6 2021) announced it has partnered with Danfoss Editron, a business division of Danfoss, to utilize its drivetrain systems in the medium duty fully electric Vicinity Lightning™ EV Bus.

Danfoss Editron specializes in hybrid and electric drivetrain systems for the marine, off-highway and on-highway markets. A business division of Danfoss, it develops and manufactures high-performance power systems for heavy-duty vehicles, machines, and marine vessels based on its unique synchronous reluctance assisted permanent magnet and inverter propulsion system technology.

The systems feature a Buy America Compliant 220kW motor with an Eaton multi-speed transmission. They are also fitted with a digital AVIONICS controller and inverter to enable the intelligent management of all the vehicle’s operations. Weighing only 85kg, Danfoss Editron’s drivetrain systems are significantly lighter in weight than other electric drivetrains on the market, which can weigh as much as 500kg. Manufactured in Danfoss Editron’s Colorado plant, these Buy America Compliant motors are a key part of the Vicinity Lightning™ product that will be assembled in the new VMC Washington State manufacturing facility.

William Trainer, Founder and CEO of Vicinity Motor Corp said, “The EDITRON drivetrain and the expert team at Danfoss Editron are an ideal partner for us as we continue to expand the breadth of our EV product suite. We have issued a purchase order for 300 of the company’s drivetrain systems to guaranty supply for our customers through 2022. We look forward to continue working with the team at Danfoss Editron to build a globally competitive, cost effective vehicle for our customers.”

Cliff Stokes Jr., Senior Sales Manager at Danfoss Editron, added, “Our commercial bus drivetrain has over 10 million miles on the road and is in use by commercial vehicle OEMs in North America, South America, Europe, China and India. It has been specifically developed to deliver high levels of torque efficiently at a wide range of rotational speeds, helping to maximize vehicle efficiency. We’re thrilled to add Vicinity Motor Corp and its promising electric bus program as another key customer in North America.”

ESG comment:

Vicinity Motors once again show they are leading the EV industry when it comes to new technology. They’ve previously announced a partnership with EXRO for Enhanced Powertrain System into Next-Generation Electric Bus Fleets and now as mentioned above, they’ve announce a partnership with Danfoss. Danfoss Editron specializes in hybrid and electric powertrain systems for the marine, off-highway and on-highway markets. The Buy America compliant motor from Danfoss should fit well into Vicinity’s plans to becoming the leading EV supplier in North America.

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.

CIELO RECEIVES CONDITIONAL APPROVAL TO UPLIST ON THE TSX VENTURE EXCHANGE

Ticker: CMC.CN / CWSFF
Listings: Canadian Securities Exchange / US OTC / Frankfurt – Soon to uplist to TSX venture exchange
Website:https://www.cielows.com/
Market Cap: 287 MCAD at time of publication
Share price: 0,74 CAD at time of publication
Industry: Converting waste to renewable fuel

Official news release statement:
“Cielo Waste Solutions is pleased to announce that it has received
conditional approval to list its common shares on the TSX Venture Exchange (“TSXV”), subject to fulfilment of certain conditions. The Company will make a further announcement once the TSXV has issued a bulletin confirming the date on which trading on the TSXV will commence. The Company will also apply to have its common shares voluntarily delisted from the Canadian Securities Exchange (“CSE”) immediately before trading begins on the TSXV. Once listed on the TSXV, the Company will continue to trade under its existing symbol “CMC” and
shareholders will not be required to take any action related to the listing. The Company’s shares will also continue to be listed on the OTCQB under the symbol “CWSFF”. Cielo anticipates the listing to be completed shortly.”

Don Allan, CEO of Cielo Waste Solutions, commented: “We are excited to begin trading on the TSXV, a globally recognized
exchange. The move to the TSXV will increase Cielo’s presence and provide easier access and trading to
investors globally. We would like to thank the CSE for their continued support over the years and look
forward to our new relationship with all those involved with the TSXV.”

ESG Comment:
Finally Cielo Waste Solutions has received the long anticipated confirmation that it’s uplisting to the TSX venture is imminent. We have noted that the company already has a few institutional owners listed below. These numbers are not confirmed but come from relatively reliable sources and therefore we have chosen to disclose them accordingly. The uplisting to the TSX venture will enable for many more institutions to purchase shares in the company and it’s also an important springboard to getting an uplisting to the NASDAQ further down the line . However uplisting to NASDAQ has not been communicated by the company yet so this is only a speculation from our side of what could be possible further down the line.

Current institutional ownership in Cielo Waste Solutions as follows below:

Palos – WP Growth Fund: 2,625,000 Shares
HSBC – Small Cap Growth Fund: 641,870 Shares
HSBC – Canadian Small Cap Equity Pooled Fund 214,529 Shares
U.S. Global Investors – Global Resources Fund: 200,000 Shares

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.

VICINITY MOTORS CORP WINS INITIAL ORDER FROM CALGARY TRANSIT WORTH $6 MILLION

Company: Vicinity Motor Corp(formerly Grande West Transportation )
Listings :TSXV , US OTC SOON to be up listed at Nasdaq
Ticker: VMC.V (previously BUS ,BUSXF at US OTC
Market cap at time of publication: $194 MCAD
Stock price at time of publication: $6,6 CAD ( reverse split price 2,2 CAD)
Business: Leading supplier of electric, CNG, gas and clean-diesel buses for
both public and commercial enterprise use in the U.S and Canada
Comparable peer : Greenpower Motor , Market cap $500 MCAD
Website: https://www.grandewest.com/

Hard work has paid off for Vicinity Motors which today proudly announced an initial order of 14 Vicinity Lightning™ EV buses worth $6 million from Calgary transit.

CEO William Trainer provided a comment with the announcement:

“Calgary Transit is one of Canada’s leading transit authorities, with a strong commitment to reducing vehicle emissions and environmental impact,” said William Trainer, Founder and CEO of Vicinity Motor Corp. “This first order marks the beginning of a valuable partnership with Calgary Transit as they diversify their fleet and mitigate exposure to energy and carbon costs.

“As cities around the world seek to meet climate goals, the demand for sustainable, zero emission transit options like our breakthrough Vicinity Lightning™ EV will continue to grow. We look forward to introducing our electric vehicles to the people of Calgary in the short-term and continuing to build value for our shareholders with the continued momentum in our next-generation Vicinity Lightning™ EV line.”


ESG Comment: Calgary Transit has the potential to become avery big customer for Vicinity Motors since they have a fleet of over 1000 buses. The contract that was signed runs over 5 years with an option to buy additional vehicles. The order is expected to be delivered in 2022.
Vicinity Motors most likely won this bid over other several actors since this was a public bid process. We see it as a very strong sign of the customer adaption and customer service orientated focus that Vicinity Motors has displayed to win this bid. Their Vicinity Lightning™ EV buses seems to constitute the best value for money in the public transit market judging by this recent order.
This order is also most likely the first of many as a result of winning public bidding processes.

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.

Vicinity Motor Affirms State of Washington Support for Transit Electrification with State Grant

Company: Vicinity Motor Corp(formerly Grande West Transportation )
Listings :TSXV , US OTC SOON to be up listed at Nasdaq
Ticker: VMC.V (previously BUS ,BUSXF at US OTC
Market cap at time of publication: $191 MCAD
Stock price at time of publication: $6,52 CAD ( reverse split price 2,16 CAD)
Business: Leading supplier of electric, CNG, gas and clean-diesel buses for
both public and commercial enterprise use in the U.S and Canada
Comparable peer : Greenpower Motor , Market cap $500 MCAD
Website: https://www.grandewest.com/

Vicinity Motors corp has today announced that they have received over $300 000 worth of grants for the development of their new facility in the state of Washington. The economic development grant from the Washington State Department of Commerce is part of a larger group of state grants focused on high impact investments in the areas of innovation, sustainability and resilience.

ESG comment:
We welcome the news of this grant as a sign that Vicinity Motors corp is building a strong relationship with the state of Washington and that their new establishment has been well recieved! This is a step in the right direction towards more grants and cooperations with the local authorities.

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.

Vicinity Motor Corp Announces Entry into Medium-Duty Electric Truck Market

Company: Vicinity Motor Corp(formerly Grande West Transportation )
Listings :TSXV , US OTC SOON to be up listed at Nasdaq
Ticker: VMC.V (previously BUS ,BUSXF at US OTC
Market cap at time of publication: $191 MCAD
Stock price at time of publication: $6,5 CAD ( reverse split price 2,16 CAD)
Business: Leading supplier of electric, CNG, gas and clean-diesel buses for
both public and commercial enterprise use in the U.S and Canada
Comparable peer : Greenpower Motor , Market cap $500 MCAD
Website: https://www.grandewest.com/

Vicinity Motors , the top pick for ESGFIRE in the electric vehicles sector, today announced the news that they are launch a medium-duty electric bus which targets the urban delivery market. The EV truck is expected to appeal to customers in urban delivery applications with daily usage under 150 miles. Vehicles will be sold through a robust network of existing dealerships throughout North America. Full production and commercial deliveries of the VMC trucks is scheduled to begin in the fourth quarter of 2021.

William Trainer CEO of VMC commented :
“The premiere of the VMC electric truck is an incredible milestone for not only Vicinity, but for the industry as it transitions towards true zero-emissions,” said William Trainer, Founder and CEO of Vicinity Motor Corp. “The VMC truck will be an environmentally friendly alternative for diesel vehicles more commonly used in this segment. We designed our electric truck to be a cost-effective, user-friendly vehicle with the ability to charge using standardized solutions, requiring no major infrastructure upgrades on the part of our customers. We’ve leveraged our world class technology to engineer this one-of-a-kind vehicle with our customer in mind – and the result is another industry first.

ESG comment: Vicinity motors expects to sell over 5000 units of this new electric vehicles type in a market that annually sells over 400 000 trucks. The company also states that they have locked in production levels for orders of up to 200 units in 2021 alone.
The company undoubtedly looks to be moving towards a major market penetration breakthrough!

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.

Vicinity Motor Corp to Present at LD Micro Invitational XI

Company: Vicinity Motor Corp(formerly Grande West Transportation )
Listings :TSXV , US OTC SOON to be up listed at Nasdaq
Ticker: VMC.V (previously BUS ,BUSXF at US OTC
Market cap at time of publication: $189 MCAD
Stock price at time of publication: $6,43 CAD ( reverse split price 2,14 CAD)
Business: Leading supplier of electric, CNG, gas and clean-diesel buses for
both public and commercial enterprise use in the U.S and Canada
Comparable peer : Greenpower Motor , Market cap $500 MCAD
Website: https://www.grandewest.com/

We want to inform our subscribers that our top pick in the electric vehicles sector, Vicinity Motors corp, will be presenting at the LD
Micro Invitational XI investor conference which is taking place virtually between June 8-10, 2021.

CEO of Vicinity Motors corp , William trainer, is schedualed to host a presentation at the following time:

2021 LD Micro Invitational XI
Date: Thursday, June 10, 2021
Time: 1:30 p.m. EDT – Track 2
Webcast: http://www.ldmicrojune2021.mysequire.com

We hope you will be listening to hear the latest from the company !

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.

EXCLUSIVE INTERVIEW WITH DON ALLAN CEO OF CIELO WASTE SOLUTIONS

Ticker: CMC.CN / CWSFF
Listings: Canadian Securities Exchange / US OTC / Frankfurt
Website:https://www.cielows.com/
Market Cap: 287 MCAD at time of publication
Share price: 0,74 CAD at time of publication
Industry: Converting waste to renewable fuel

ESGFIRE had a sitdown yesterday 27/5 with Don Allan, CEO of Cielo Waste Solutions to ask a few questions on the latest press release , the ongoing activities such as TSX uplisting, Desulphurisation and also what lies ahead. We hope you’ll enjoy this interview as much as we did !

ESG: Hi Don and welcome to this interview with ESGFIRE!

Don: Thank you!


ESG:First of all we have to ask, do you have any further comment in regards to the article by “Night Market Research”?

Don:
Yes, we think our investors, before blindly believing what this “firm” writes, should check their background. Go to their website and look at how they make money, they basically write negative reports and short stocks. They seem to do this by telling a pile of untrue statements and bet money on this. We know some shareholders would like us to reply to this “report” in detail but our management is focused on moving this company forward and we don’t want to give them too much attention. We believe our press releases and advancements speaks for themselves.

 ESG: Can you provide some details around the Press Release you just sent out on 27/5 regarding the Edmonton land purchase and what it means to Cielo Waste Solutions?

Don:
So, we have been looking for an ideal place for our Edmonton facility for quite some time now. I think we have finally nailed THE best site in perhaps, all of Canada. The reason is this is the number one hydrocarbon region in all of Canada that has over 40 billion dollars worth of infrastructure we can sell to. Close to this facility we have Canadian Pacific railways, CNM rail, and a couple of miles away we have Shell Oil refinery which they use to blend for the renewable fuel mandate ordered by the Canadian government. Finally, we are not far away from Suncor, Imperial and a lot of other potential clients. We have more than 80 % of our customers in the area of this refinery site for this facility.

What’s also great is this facility has a lot of infrastructure so we are able to shorten the original time plan from 24 months to maybe 18 months or less until commissioning. This facility will be our showpiece for customers around the world, as its only a couple of kilometers from an airport and near international airport. We are already in talks with the municipality of Ft. Saskatchewan for permits and our environmental report is up to date. We are looking to commissioning Edmonton and Dunmore facilities maybe in Q3 of 2022.

ESG: There has been questions in the investment community regarding large offtake agreements for sales. Can you tell us when we will see this?

Don:
Our  Desulphurisation process being completed is a big part of this. We are in talks with major airline and marine companies, major refineries and off highway  buyers, such as oil and gas exploration and  railway companies. They need to get samples of our fuel to see that it meets their standards which I’m sure it will. We can sell our fuel as it is to Jet and marine sector but for the highways we need the desulphurisation complete. Our fuel still needs to be tested by engine manufactures for airplanes such as Boeing and Rolls Royce. We have hired the number 1 certification company in North America to do this testing which only a handful of companies are capable of , unfortunately we cannot name them as of now.

I want to reiterate we can sell the fuel today as is but we would not get top dollar for it. Once our desulphurisation process is done we have a 900 000 liter order to begin filling. We do have customers who want to buy our fuel as well as an offtake agreement and they will get a sample to see if it meets their criteria or if we need to change anything once the desulphurisation is complete. I cannot provide a timeline for when the fuel will be approved by all our sectors but its an ongoing process and I’m confident we will meet all requirements.

ESG: Cielo seems to have many great opportunities ahead of themselves.  Can you identify what path  you feel may be your best opportunity to use as your primary growth strategy?

Don: There are many interesting roads to growth and we are currently working  with paper mills to taking their pulp sludge and environmental companies covering human solid waste from municipalities as feedstock. Seeing as our growth plan is to build 40 facilities in the next 5-7 years our goal is to help municipalities turning their cost of waste into a  revenue stream for them. Landfills actually take, on average, 25 % of the budget from municipalities. We will turn this into a revenue stream for them.
Some municipalities also have 2030 targets to be carbon neutral and 2050 to get rid of landfills and they wont be able to reach these without us (Cielo). Cielo process runs on green electricity, so  we can help them recover the methane and have them turn it into green power.

ESG What , if anything, will Cielo do with the existing methane gas coming off the municipal landfills?


Don:
Methane is one of the most harmful of all greenhouse gases and 25 % of the world’s  greenhouse gas comes from landfills. With third party contractors we can recover the methane, which is a syngas, the municipality can then put this into a turbine and use it as electric power.  We would then buy the power from them. The municalities would also recycle all the metals, glass,  copper all  with value they can collect and sell. The feedstock that we can use from their landfills we turn it into renewable diesel which the municipality can then put into their commercial and transportation vehicles for example.

ESG: Why does Cielo pay a tipping fee for feedstock?

Don:
We pay a tipping fee because it costs money to recycle. If you look at big contractors like GFL there is no way you get recycled material for free but it really comes down to pennies on the liters as we produce. Instead of paying $1.25 on canola or other agricultural feedstock we have a much cheaper feedstock.

ESG: Does Cielo disrupt any current other business models in this process?

Don:
No we are actually complementary, when it comes to landfills there is so much garbage and we are giving municipalities a solution by turning a deficit into revenues. Much of the renewable fuel in Canada today is imported so we have the ability to put in high quality renewable diesel fuel instead of using other sources such as crops.

ESG: How will this strategy play out in Edmonton, your most recent facility location?

Don:
We are using multiple feedstocks and we have signed 5 mous with feedstock providers already. The feedstock is everything from municipal waste to landfills , waste from logging industries (wood) , sawmills , sewage as possible feedstock , plastics, we luckily have enough feedstocks for 20 plants at our Edmonton facility. We will build infrastructure for 3 plants as a start . One plant can produce 4000 Liters per hour ( 1056 gallons per hour) . So the first goal will be 12000 liters per hour (3170 gallons per hour) for Edmonton but ideally I would like to get this number up to 24 000 LPH (6340 gallons per hour).

ESG note: A 12000 LPH facility running at 20 hours a day for 7 days a week for 11 months would equal close to $135 million in annual revenues assuming a 1,67 CAD price per liter for the Edmonton facility alone not taking into account any revenues from potential emissions rights.

ESG: What is the actual Greenhouse gas emissions impact of Cielo’s renewable diesel compared to regular diesel and gasoline?

Don:
We have actually hired the number 1 company in North America to find out the actual  GHG savings and we will likely be able to update the market on this in approximately 6-8 weeks.

If Canada goes forward with their 170 dollar tax per tonne of green house gas emissions we could make more money off these  emission rights than selling the actual fuel. We are likely the only company who likes this tax. However we do not count in any subsidies in our business model because you never know what happens with politics. Our revenue numbers NEVER include GHG emission rights, so this COULD potentially be a big and solid revenue for us.

ESG: How are things going with the planned uplisting to the TSX Venture?

Don:
We have given  TSXV everything they’ve asked for and they have a meeting on June 3rd to put Cielo in front of them. We should hopefully be trading, approximately the middle of June unless the exchange has more questions for us to answer

ESG: How confident are you that your planned facilities with Renewable U Energy Inc will be financed on time?

Don:
We talk to them (RUEI) everyday. I can tell you everything seems to be going extremely  well. They are keeping up with their invoices to us and the  Dunmore facility is being paid and I don’t think it will be difficult to finance.
I have no doubt in my mind that they can do the financing that they are claiming.

ESG: Can you give us an update on the desulphurisation process?

Don:
Yes,  90 % of the equipment is on site today and our crews are working 7 days a week. We still have some work to do such as electrical connections and welding but we are hoping to be commissioning between mid to end of June.


ESG:
Do you have any further plans how to finance cielos growth for your  fully own planned  facilities?

Don:
We currently have a number of term sheets looking to finance the Edmonton facility. We are currently  working with some of the largest banks in the world and we are likely looking at 50-60 % bank financing for the first 100 million dollar phase ( out of which $12 million has been covered by the land purchase ).

We expect debt rates to be reasonable going forward and it wont take long until we are in higher revenue range and at which point we will be able to get even better debt terms and less need for equity financing.  We will likely have a lot of revenue to finance our growth down the line.

The financing looks like this:
-Edmonton first phase, 100 million dollars, infrastructure for 3 sites ( 12 million is done by the land purchase)
-second phase will be 30 million
-third phase 30 million

The second and third phase we will likely will be using cashflow from the first phase.
For the first 100 million dollar phase minus the 12 million we have done from the land purchase we are likely looking at 50 % debt and 50 % equity. The debt rate will most likely be in the single figure range, definitely not double range.


ESG: Thanks for joining us today Don!

Don: It was my pleasure!

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.

CIELO WASTE SOLUTIONS SIGNS AGREEMENT FOR PURCHASE OF LAND FOR SECOND FULLY OWNED FACILITY

Ticker: CMC.CN / CWSFF
Listings: Canadian Securities Exchange / US OTC / Frankfurt
Website:https://www.cielows.com/
Market Cap: 299 MCAD at time of publication
Share price: 0,78 CAD at time of publication
Industry: Converting waste to renewable fuel

Cielo Waste Solutions has today announced today that they have entered into an agreement to purchase an approximately 60 acres of land in fort Saskatchewan, a municipality 25km from Alberta’s capital city of Edmonton. 

The land has a site built on it by a global construction and fabrication company from Belgium. The site includes “a 31,750 sq ft building and 35 acres that is graveled and improved, including fence, power and a yard compacted to 10 tons per square foot.  The Land was developed in 2015 for approximately CDN$21M in the Alberta Industrial Heartland, Canada’s largest hydrocarbon processing region” . Management of Cielo emphasizes that the site has advantages in the global market such as access to global markets through the two largest railway lines in Canada and pipelines to deliver fuel directly to their off-take clients. A large part of construction is also as mentioned already built which will make the process of completing the plant more time efficient and likely ahead of the normal time plan.


The purchase is priced at 13 MCAD . The press release states the financing as follows:
“Cielo is also pleased to announce that it has accepted a binding term sheet for the financing of the balance of the purchase of the Land.  First Choice Financial (“FCF”) has agreed to deliver a loan to the Company of $12,000,000 for the purchase (the “Loan”).  The Loan will mature after 2 years and is subject to simple interest at a rate of 6% per year, payable monthly throughout the term of the Loan and can be extended by the lender.  Cielo will also issue 12,000,000 non-transferable bonus warrants to FCF, exercisable for a period of 36 months at an exercise price of CAD $1.00 per share.  Cielo will be entitled to repay the Loan at any time without penalty.  Other than certain expenses of FCF associated with the Loan, no additional fees or commissions will be payable to FCF or any finders.  

The Loan will be secured by all of the assets of the Company, including charges against the land and facilities in Fort Saskatchewan and Aldersyde.  The Loan is also subject to certain customary conditions. Closing is anticipated to coincide with the completion of the purchase of the Land.”

Don Allan, CEO of Cielo Waste Solutions stated in the press release , “We are pleased to have secured this land, which is in proximity to “Refinery Row”, a nickname given to this location in Fort Saskatchewan because of all the major blending refineries that we believe will be the primary customers buying our fuel for mandated renewable blending requirements in Canada.  With the amenities and infrastructure in place, we believe Cielo will have the ability to build our second 100% owned facility in a timely manner”.  Mr. Allan continued: “We believe the debt financing is favourable and allows flexibility for early payout. We are very pleased with FCF’s term sheet and we appreciate their belief and support in Cielo. We will continue our focus on installation of the desulfurization equipment and increased production on our Aldersyde facility and begin the building of this new plant as per our projected timelines.  Once both facilities are operating, the Company is expected to enjoy a significant increase in revenue and earnings and paves the foundation for future growth.”

ESG comment: We see the purchase of land as a great agreement that will accelerate Cielo’s expansion, especially when we keep in mind that a large part of the construction is already built. This is a huge step into building their second 100% owned facility. Something that may not be obvious to everyone is that getting a 6% interest rate loan for a small revenue company is very well done. And while there are warrants attached they are given at 25% higher than market price today and once exercised it also puts ANOTHER $12M into the company’s bank accounts.

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.

DEBT CONVERSION IMPROVES BALANCE SHEET FOR EWI

Company: Environmental waste international
Listings :TSXV , US OTC
Ticker: $EWS $YEWTF 
Market cap at time of publication: $59 MCD
Stock price at time of publication: 0.235 CAD
Business: Tyre and waste recycling through reverse polymerization
TAM Market size: 158 billion $
Comparable peer : Scandinavian Enviro systems $SES
Website: https://www.ewi.ca/

Environmental waste international has today announced a debt conversion which considerably lowers the companys debt and improves the balance sheet. The total debt converted amounts to of $1,282,017 CAD and is settled with EWI Investors LLC (of which Robert Savage is the Managing Member and a director of the Company) and Bob MacBean, Chief Executive Officer of the Company.
The debt will be settled through the issuance of an aggregate of common shares at a price equal to the higher of $0.23 or the volume weighted average trading price of the common shares for the ten (10) days following the date hereof. The debt conversions will be subject to a statutory hold period of four months and a day from the date of issuance . The debt conversion requires the approval of shareholders of the Company because EWI Investors, LLC will become a new control person of the Company since it will own over 20% of the Company’s common stock

ESG comment:
It’s very positive to see the balance sheet improving even more for EWI, the company should with this action being approved be even closer to becoming debt free since the JV agreement with torreco also reduced the debt of the company. This puts EWI in an even better economic shape for the expansion planned ahead. EWI has 5 facilities planned or being built at the time of this publication.

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.