Cielo strikes deal with Australians
A Canadian company marketing waste-to-diesel technology is gaining traction on the other side of the world.
Cielo Waste Solutions Corp. (CSE: CMC) — which has its head office in Surrey, B.C., but its operational headquarters in Red Deer — announced on Monday that it’s struck a deal with Emerald Green Energy Pty Ltd. of Perth, Australian, to sell Cielo products in the South Pacific country.
“It’s a very large market in Australia,” said Cielo CEO Don Allan. “There are lots of opportunities there.”
Cielo has been promoting a system that coverts waste material like paper, cardboard, cloth and plastics into renewable diesel fuel. It has a small demonstration refinery that can produce about 50 litres of diesel per hour, and plans to manufacture larger, commercial-scale facilities.
In April, the company announced that it had signed a letter of intent with Red Deer County to lease the Horn Hill waste transfer station east of Penhold and develop a waste-processing system and renewable diesel refineries at the site. It wants to use municipal waste material there as feedstock.
Allan said on Monday that Cielo is close to finalizing a formal agreement with the county.
Thereafter, it expects to manufacture a 200-litre-per-hour refinery for use at Horn Hill, followed by a 700-litre-per-hour plant.
“As soon as the 700 is up and running, then we’re going to move the 200 to Australia,” said Allan, confirming that Cielo already has a buyer there for the 200-litre unit.
The move could happen early next year, he said.
The 700-litre unit at Horn Hill would be joined there by others.
“We think that we’ll easily go to six over a period of time.
“It’s going to be our flagship.”
Allan added that other buyers are waiting in the wings. Cielo has confirmed that it’s received a $13-million purchase order from an undisclosed buyer for a 700-litre per hour refinery and a waste-processing line.
The company is also negotiating more licensing agreements like the one it has with Emerald Green Energy. These would provide exclusive selling rights for Cielo products in other territories.
“We’ve got probably a third of the world being covered right now,” said Allan.
He thinks the 200-litre refinery could be fabricated in Alberta. After that, manufacturing might move to Central Canada, the United States or even overseas.
“We haven’t decided who’s going to do the fabrication yet. It has a lot to do with our financiers.”
Cielo will be showcasing its demonstration refinery to prospective investors and buyers this week and next at Blindman Industrial Park north of Red Deer. Allan said representatives of interested parties in China, Honduras, the United States and Canada will be on hand.
Cielo also confirmed on Monday that Jim Peterson, a former Canadian international trade minister, secretary of state (international finance institutions) and chair of the House standing committee on finance, has been nominated for election to the company’s board of directors.
“He comes with a lot of international experience, which is what we were looking for,” said Allan. “Probably 90 per cent of our orders are going to be outside of Canada.”