October 4, 2018 - 9:00 AM EDT
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Cielo Provides Operations Update on Aldersyde Renewable Diesel Refinery




Cielo Provides Operations Update on Aldersyde Renewable Diesel Refinery



Vancouver, British Columbia (FSCwire) - Cielo Waste Solutions Corp. ("Cielo" or the "Company") (CSE:CMC) would like to provide an operations update on the progress of the commissioning of its first commercial refinery in Aldersyde, Alberta (the “Refinery”).

 

Cielo has continued to refine and improve the engineering and design of the Refinery as the Company progresses through Phase 1 commissioning.  This commissioning has been divided into 2 stages, the first being the production of raw distillate and the second being the further refinement of the raw distillate into renewable diesel, kerosene and naphtha fuels.  The first stage has been in progress since the Company’s announcement on August 22, 2018.  Cielo anticipates beginning the second stage during the week of October 20th, 2018, with sales beginning shortly after. 

 

During the Phase 1 commissioning process, Cielo has continued to make improvements by identifying inefficiencies and problem areas and working to resolve these.  This has resulted in the tailoring of a portion of the original process, which further results in a change to some of the Company’s original milestones.  A few items of note include the following:

 

  • Further raw distillate sample test results indicate better characteristics than initially expected and better than the initial results, announced on August 22, 2018: almost no water content, cetane rating of 55 (which management understands to be very impressive as it was only at the raw distillate stage) and favourable colouration, which proves the process works and is producing a high quality distillate.  The lab results have instilled the confidence in management to move to the second distillation stage.

 

  • The original single heater system was expected to provide sufficient heat for the continuous flow of the entire Phase 1 process (i.e. both stages), however Cielo has determined that a larger heater system is required to run each stage efficiently and both stages simultaneously.  For the time being, to keep things progressing, Cielo has decided to run one stage at a time until further capital is acquired to purchase a larger heater system, which will allow the Refinery to produce at full capacity, with both stages operating at once. This temporary approach will allow Cielo to complete both stages and begin achieving revenues while reviewing options for the additional required capital to purchase the larger heater system.

 

  • As a result of the foregoing, and as management believes is generally expected with the initial commissioning of a new process and technology, the Phase 1 budget continues to change and increase.  Revised budget figures are expected to be finalized once revenues are achieved as management will have a better indication of costs at that time.

 

  • Cielo had previously planned to adjust its biomass/feedstock/used motor oil ratio until an optimal ratio is reached during the Phase 1 commissioning process, prior to moving forward with the second stage, however management has decided to move to the second stage now, to progress to the production of renewable diesel and revenues more expediently, then returning to improve the mix ratios.

 

In addition, management has begun engaging in discussions with third parties for potential joint ventures as Cielo anticipates being less than two months from revenues.  Initially, management had planned to delay discussions until achieving sales, however it has decided to explore opportunities now given the needs identified above paired with strong interest from potential joint venture partners.

 

Don Allan, President and CEO of Cielo, states, “Over 15 years in research and development have been spent on this technology.  We have found some inefficiencies in the process as we commission Phase 1, which is expected during start-up.  We have made leaps and bounds forward in engineering and design but we are cognisant that our stakeholders are looking for sales figures for our renewable diesel.  As such, we are focused on moving forward to achieve first revenues and will then return our focus to optimizing volumes and increasing efficiencies.  Despite having identified areas requiring improvement, which we believe is usual during commissioning, as well as the delay of our original target dates, we are very satisfied with having completed the most complicated stage of converting biomass into raw distillate and the quality of that raw distillate.  The remaining steps of distillation and sulphur removal are very common in refining, so we are confident that the biggest growing pains are behind us.”

 

Join Cielo shareholders on 8020 Connect: http://bit.ly/Cielogroup

 

For more information please contact:

 

Cielo Waste Solutions Corp.
Don Allan, President & CEO
(403) 348-2972 Ext. 101
[email protected]
www.cielows.com

 

Michael Yeung, CFA, VP, Business Development & Capital Markets
(403) 348-2972 Ext. 103
[email protected]
www.cielows.com

 

About Cielo Waste Solutions Corp.

 

Cielo Waste Solutions Corp. is a publicly traded company with its shares listed to trade on the Canadian Securities Exchange (“CSE”) under the symbol “CMC”. Cielo holds the exclusive license for the global rights to a transformational, patent-pending, technology engineered to convert garbage-derived feedstocks to renewable diesel, at a significantly lower cost than biofuel companies. With landfills being one of the world’s leading contributors to Green House Gas emissions and being projected to double in size over the next 7 years, Cielo can potentially resolve this crisis, on a cost-effective basis, by converting multiple different garbage-derived feedstocks, including sorted municipal solid waste (garbage), wood and agriculture waste, tires, blue-box waste, all plastics and virtually any other cellulous waste product into high grade renewable diesel.

 

Cautionary Note Regarding Forward-looking Statements

 

This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.

 

Forward looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements, including but not limited to: the use of proceeds of the offering, receipt of all necessary approvals of the offering, general business, economic, competitive, political and social uncertainties; negotiation uncertainties and other risks of its industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

 

Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, neither the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.

 

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.







Source: Cielo Waste Solutions Corp. (CSE:CMC, FWB:C36)

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