On March 17, 2022, Northstar announced that the Company’s Board of Directors approved the selection of the City of Calgary, Alberta, Canada as the planned location for the Company’s expanded-capacity asphalt shingle reprocessing scale up facility(the “Calgary Empower Facility”).
Based on the independent engineering design study, the Calgary Empower Facility is expected to be the Company’s first modular scale up facility and is expected to be designed and engineered with an estimated capacity of 150–200 tonnes per day (“tpd”), which is approximately two to three times scale up from the full commercial production capacity of 50-75 tpd at the Company’s existing reprocessing pilot facility in Delta, British Columbia. The scaleup facility’s build and design are part of the Company’s planned expansion strategy with the goal of operating asphalt shingle reprocessing facilities across Canada and the United States. The Company’s independent front-end engineering design or “FEED” for the scale up facility is expected to be completed by the end of Q1 2022.
The Company previously commenced an exploratory site selection process for its first scale up facility. The Company then commenced a detailed geographic target market analysis to evaluate potential site locations. After identifying several potential geographic markets for Northstar’s flagship facility, the Company determined that the City of Calgary was the most attractive location for the Company’s first expansion facility for the following reasons:
· Strategic center of Canada’s “Energy Transition” economy
· Strong provincial, municipal, and community support for emissions reduction projects
· Sophisticated government programs for energy transition projects
· Suitable industrial land options located close to landfill(s)
· Significant asphalt shingle supply and inventory
· Close proximity to major industry partners, including shingle manufacturers and off-take partners
· Highly skilled labour for engineering, materials handling and hydrocarbon processing
· A clear road map for non-dilutive project financing and government grants
Expected Sequence of Events
· H1 2022 – Commence procurement of long lead equipment
· H1 2022 – Enter into a long-term lease for the Calgary Empower Facility
· H2 2022 – Complete detailed plant engineering
· H2 2022 – Complete life cycle assessment for Calgary Empower Facility
· H2 2022 – Commence procurement of equipment and pre-construction work
· H2 2022 – Complete operational personnel and contractor hiring
· H2 2022 – Commence Calgary Empower Facility construction
· H1 2023 – Commercial production at Calgary Empower Facility
Final site selection and other construction terms are subject to final approval by the Company’s Board of Directors. Upon securing financing and receiving permits, the Company plans to begin construction on the Calgary Empower Facility in the second half of 2022 with targeted operations by the end of the first half of 2023.
The Calgary Empower Facility will operate under “Empower Environmental Solutions Calgary Ltd.”, a wholly owned subsidiary of the Company.