Asphalt recycler reaches $3.9M project milestone

Key Takeaways:

• Northstar Clean Technologies successfully completed Milestone 2 for its Empower Calgary Facility under its agreement with Emissions Reduction Alberta (ERA), triggering a $3.9 million milestone payment. This brings total ERA funding received to $5.2 million, with $1.9 million remaining contingent on future milestones.
• All major equipment has been delivered, installed, and electrified, and construction is considered substantially complete under the Builder’s Lien Act. The company has begun commissioning activities at the Calgary facility, with operations progressing as planned.
• By reprocessing discarded asphalt shingles into reusable components, Northstar is reducing landfill waste and supplying sustainable materials to the construction industry.

The Whole Story:

Northstar Clean Technologies Inc. announced that it successfully completed Milestone 2 requirements stipulated in the Emission Reduction Alberta (ERA) contribution agreement and received the resulting milestone payment totaling $3.9 million.

Milestone 2 criteria required Northstar to demonstrate a number of elements with respect to the Empower Environmental Solutions Calgary Facility including:

• Completion of all major procurement activities, other than final performance payments to vendors;
• All major processing equipment delivered;
• All major equipment installed and electrified;
• Implementation of the Green House Gas, Measurement and Monitoring Verification plan during construction for tracking during Milestones 3 and 4; and
• Substantial completion of construction as defined in the Builder’s Lien Act.

All of these elements have been reviewed and completed as part of the ERA due diligence process to verify completion of Milestone 2.

The resulting $3.9 million funding from ERA brings receipts to date from ERA to $5.2 million. Approximately $1.9 million remains outstanding under the ERA grant, upon attainment of commissioning and operational milestones.

The funding under Milestone 2 materially reimburses Northstar for construction expenditures for the Empower Calgary Facility. Taken together with other funding initiatives, the Empower Calgary Facility has been fully funded and leaves suitable working capital for the Company to advance expansion opportunities in Canada and the United States. Commissioning efforts at the Empower Calgary Facility are well underway and proceeding as planned.

“Our experience with ERA has been nothing short of a great partnership,” commented Aidan Mills, Northstar President & CEO. “We sincerely appreciate the support from ERA as we look to become a leading entity in the waste to value industry. With the ERA support, construction completion represents a significant milestone at our Calgary facility. All our partners can take pride in creating a new industry that enhances the economy, creates employment opportunities, and importantly delivers environmental benefits in a circular economy.”

Northstar is a Canadian clean technology company focused on the sustainable recovery and reprocessing of asphalt shingles. Northstar developed and owns a proprietary design process for taking discarded asphalt shingles, otherwise destined for already over-crowded landfills, and extracts the liquid asphalt for use in new hot mix asphalt shingle manufacturing and asphalt flat roof systems while also extracting aggregate and fiber for use in construction products and other industrial applications.

“The real demonstration of successful investments comes when the projects we fund are commercialized and deployed in the market,” stated Justin Reimer, CEO Emissions Reduction Alberta. “We are excited for Northstar’s completion of the major construction elements of their project and the opportunity to reduce environmental impacts through the reprocessing of waste asphalt shingles. They are not only diverting waste from landfills, but also providing the construction industry with clean, sustainable processing solutions.”

Focused on the circular economy, Northstar plans to reprocess used or defective asphalt shingle waste back into its three primary components for reuse/resale with its first commercial scale up facility in Calgary, Alberta. As an emerging innovator in sustainable processing, Northstar’s mission aims at leading the recovery and reprocessing of asphalt shingles in North America that would otherwise be sent to landfill addressing numerous stakeholder objectives.