Cielo announces investor for waste-to-fuel refinery
Cielo Waste Solutions Corp. says it has entered into a joint venture agreement with a Toronto-based investor for funding for its first commercial-scale waste-to-fuel refinery.
A release issued by Cielo (CSE:CMC), which is based in Surrey, B.C. but has its operational headquarters in Red Deer, said the funding will be used to complete upgrades to an existing demonstration plant in Red Deer, as well as file patents, and engineer and build the commercial refinery.
“This money will not only ensure our first plant is built, but it will pave the way for more companies and municipalities who are interested in purchasing our technology at a commercial scale,” said Don Allan, president and CEO of Cielo.
Cielo’s technology converts municipal waste like paper, cardboard, cloth and plastic into diesel fuel. The company has said it wants to set up multiple refineries at the Horn Hill waste transfer station east of Penhold, and also sell refineries.
Under the joint venture agreement, Cielo will receive an initial $1 million, and once it satisfies certain conditions additional funding of up to $10 million for the construction of a commercial-scale refinery. This will be located in Red Deer. The investor will receive an interest in Cielo’s technology, and a percentage of Cielo’s revenues and other consideration. It will also have the right of first refusal to fund up to 100 refineries in Canada, to a maximum of $10 million per refinery.
Cielo previously announced that it has entered into an agreement with New Fuel International Inc. of Seattle, Wash., for New Fuel to market and produce renewable biofuel from industrial biomass waste streams in California, Oregon, Washington, Hawaii, Alaska, British Columbia and Ontario. It also announced an agreement with Emerald Green Energy Pty Ltd. of Perth, Australian, for Emerald to sell Cielo products in Australia.