Nova Scotia companies in need of feedstock to produce renewable fuel

Renewable diesel production plant. (Image courtesy of Cielo Waste Solution).

Two Canadian companies are looking for sources of waste feedstock in Nova Scotia to produce transportation diesel, jet fuel and naphtha fuel.

Cielo Waste Solutions (CSE: CMC) and Renewable U Halifax put out a call for expressions of interest for their planned Joint Venture Renewable Fuel Facility that will be located in or within 150 kilometres of the provincial capital, Halifax.

Cielo uses a refining process referred to as Thermal Catalytic Depolymerization, which blends waste with a chemical catalyst and low heat to change the composition of the material, producing renewable transportation diesel, jet fuel and naphtha fuel

The idea is that companies and organizations that generate industrial, commercial and municipal waste in Nova Scotia submit their proposals so that they can provide the feedstock needed to put in motion Cielo’s facility. The plant is being engineered to convert eight tonnes of dried waste per hour into approximately 32.7 million litres a year of high-grade renewable fuel.

“We are very optimistic that this EOI for Nova Scotia will provide multiple feedstock sources and help us select the right location for our green waste-to-energy facility,” Don Allan, Cielo’s CEO, said in a media statement.

“Our technology can convert multiple different waste streams into high-grade renewable fuel without having to sort the feedstock,” Allan said.

The company is in advanced discussions with an industry buyer who is interested in entering into a long-term agreement to purchase the fuel and who doesn’t need the producer to remove the sulfur from it. 

“Although reduced fuel prices will impact Cielo’s cash flow, it’s expected that Cielo’s highly efficient production costs will help insulate the company from current low fuel prices and allow for solid margins on the sale of product,” Allan said.

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