Cielo Waste Solutions to produce renewable diesel from waste in Nova Scotia
Cielo Waste Solutions Corp. has signed a memorandum of understanding (MoU) with Renewable U Halifax Inc. to build a renewable diesel refinery within 150 kilometers of Halifax, Nova Scotia, Canada.
The renewable diesel refinery is estimated to cost CAD50 Million (USD38 million).
Renewable U Halifax is one of multiple corporations under the “Renewable U” name with which Cielo has entered into several memoranda of understanding on substantially the same terms as this MOU, as previously announced.
Renewable U Halifax and Cielo will be working towards entering into a joint venture agreement contemporaneously with the joint venture agreements to be entered into with other Renewable U companies, which will provide the framework to build and operate a 4,000-litre-per-hour joint venture refinery in Nova Scotia that will be engineered to operate 24 hours a day, 341 days per year.
Cielo Waste Solutions is expecting to convert 327,360 tonnes of garbage into 163,680,000 litres of renewable fuels annually from the five announced JV refineries.
It is anticipated that this JV refinery will create 50 full-time jobs in Nova Scotia during construction and employ 25 full-time people once operational. The JV refinery will utilize Cielo’s proprietary waste to high grade renewable fuel technology being commercialized at the company’s refinery in Aldersyde, Alberta, located south of Calgary.
In order to gain direct access to a port to potentially import multiple different waste feedstocks, including single-use plastics, Cielo has agreed to reallocate the CAD250,000 (USD191,370) joint venture fee previously paid to Cielo, by Renewable U Brooks Inc., pursuant to a memorandum of understanding dated 27 April 2019 between Cielo and Renewable U Brooks to Renewable U Halifax.
The general terms to be incorporated into the JV agreement are substantially the same as those previously announced for the joint venture refineries to be located in Grande Prairie, Medicine Hat, Lethbridge and Calgary, Alberta, including the following guidelines:
- Renewable U Halifax will be solely responsible for financing 100% of the costs associated with the JV refinery, including the acquisition of the land, building and commissioning of the JV refinery.
- Cielo will manage the JV refinery, overseeing its planning, construction, commissioning and operation and will receive a management fee equal to 7% of the JV costs for the construction of the JV refinery, subject to certain exclusions, and will continue to receive management fees based on industry standards once the JV refinery commences production.
Profits from the JV refinery will be split 30% (Cielo) and 70% (Renewable U Halifax), until such time that Renewable U Halifax has received profits equaling 100% of the JV costs plus the applicable management fees. Thereafter, profits will be split 50.1% (Cielo) and 49.9% (Renewable U Halifax).
“After extensive review of potential waste feedstock arrangements for the four territories previously selected by Renewable U’s subsidiary companies, Renewable U is pleased to be able to help Cielo gain access to the port of Halifax, which may result in Cielo being able to sell high-grade renewable fuels into the marine industry, on a cost effective basis,” said Raphael Bohlmann, president of Renewable U Halifax and Renewable U Energy Inc., the parent company of Renewable U Halifax.
“We are pleased that Renewable U was open to helping us gain access to the port of Halifax, which opens up the opportunity for us to broaden our reach of deploying our waste to high-grade renewable fuels technology to the Maritimes and elsewhere, as well as being able to source different waste feedstocks,” said Don Allan, president and CEO of Cielo.
Cielo’s technology transforms landfill garbage into renewable high-grade diesel, kerosene (aviation jet fuel) and naphtha fuels. Cielo’s proven and patent-pending technology is currently being deployed in the company’s Aldersyde, Alberta green refinery, where wood waste is currently being converted into renewable fuels. Cielo is headquartered in Alberta, Canada, with plans to build and operate green refineries across North America and globally.