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ACCESSWIRE VANCOUVER, BC / ACCESSWIRE / November 12, 2021 / Cielo Waste Solutions Corp. (TSXV:CMC; OTCQB:CWSFF) ("Cielo" or the "Company") is pleased to provide an operational update and production forecast including project timelines, corporate goals and objectives associated with its operating demonstration facility at Aldersyde, Alberta, (the "Aldersyde Facility") as well as Cielo's planned research and development facility at Fort Saskatchewan, Alberta (the "R&D Facility"). The Company's business strategy is focused on converting waste to fuel through proprietary technology centred on a thermal catalytic depolymerization process. Today's update builds upon the Company's press release dated September 27, 2021, in which Cielo confirmed that engineering design enhancements and system modifications were underway at the Aldersyde Facility, in order to resolve the System Issues (defined below) and achieve steady-state production. Within that same press release, the Company announced its plans for the development of the R&D Facility. Aldersyde Demonstration Facility Overview The objectives of the Aldersyde Facility are focused on demonstrating the steady-state production of distillate for the sale of diesel and naphtha derived from wood waste utilizing used motor oil ("UMO") as the carrier fluid. The facility will also serve the purposes of generating revenue, product yield and control systems optimization, operations training, maintenance planning, and establishing best practices. Operational experience and philosophy from the Aldersyde Facility will translate to larger full-scale facilities. Improving the Aldersyde Facility Cielo is focused on increasing production rates at the Aldersyde Facility to a commercial level that supports revenue generation. Earlier this year, the Company implemented various process modifications which resulted in an improvement in production performance and enabled Cielo to achieve continuous production. However, these process modifications created unintended system bottlenecks and plugging issues which resulted in decreased operational run times (the "System Issues"). Immediate efforts to rectify the System Issues proved unsuccessful. In August 2021, Cielo commenced a comprehensive analysis of the Aldersyde Facility by utilizing an internal engineering team, with the support of third-party engineering consultants and technical experts. Utilizing the findings from this comprehensive analysis, the engineering design work at the Aldersyde Facility has continued since August 2021, with the focus on reducing downtime to achieve steady-state production. Engineering modification and design are being undertaken on three elements of the existing process: (i) the process infeed mixing system, (ii) reactor modifications and improvements, and (iii) the biomass waste system management (together, the "Aldersyde Project"). The Company is pleased to announce that it is on schedule to execute the following planned work for the Aldersyde Project: - Engineering design - commenced - August 2021
- Initiation of equipment procurement - to commence - December 2021
- Construction initiation - to commence - January 2022
- Commissioning and start-up - forecast - April 2022
Benefits of Aldersyde Facility Improvements By completing the planned work for the Aldersyde Project, Cielo anticipates realizing the following benefits at the Aldersyde Facility: - Improved Reliability - system constraints, process plugging issues and system deficiencies will be addressed.
- Steady-State Production - once current design modifications are implemented, commissioned and optimized, the Aldersyde Facility's maximum throughput level can be established, enabling Cielo to better assess the economics associated with anticipated increases in production rates.
- Potential Production Increases - as steady-state production is stabilized, Cielo can explore production improvements related to limitations of the Aldersyde Facility's physical area and any equipment upgrade requirements needed to support investing in an expansion of the Aldersyde Facility.
- Revenue Generation - as the Aldersyde Facility achieves steady-state production, Cielo will be able to produce both high sulphur content diesel and low sulphur content diesel from distillate and be in a position to generate revenue and report on product sales, volumes and revenue, along with clarity on operating costs plus revenue per litre.
Historical and Forecasted Production Based upon the historic production level realized at the Aldersyde Facility and the expected outcomes from the Aldersyde Project, Cielo is in a position to predict the cumulative volumes of distillate production at the Aldersyde Facility during 2022 and 2023 with base, mid-case, and high-case scenarios. The graph below illustrates the historical distillate production that Cielo produced into its storage tanks over the period from Q4 2020 to the date of this press release. The graph also illustrates the forecasted range of cumulative distillate production for 2022 and 2023 calendar years. Image: https://www.accesswire.com/users/newswire/images/672543/image.png 2020 and 2021 Actual and Forecast - The 2020 production was realized while operating the facility in a batch mode. Modifications to the Aldersyde Facility were made in early Q1 2021 where continuous production was attained but not sustained due to operational bottlenecks and plugging issues. Currently the facility continues to operate at a reduced rate as the Company addresses the System Issues. 2022 Forecast - The Q1 2021 production forecast reflects the Aldersyde Facility downtime associated with the construction activities for the Aldersyde Project. Upon completion and successful commissioning of the Aldersyde Project, a range of forecasted cumulative distillate production volumes are presented for the balance of 2022 as the Aldersyde Facility is anticipated to perform in a steady-state mode with significantly reduced downtime. 2023 Forecast - The 2023 full year forecast reflects a range of cumulative distillate production with increased volumes compared to 2022, as a result of the anticipated continuous operational and systems improvements. Further Aldersyde Facility Enhancements Following completion of the Aldersyde Project, Cielo will undertake a third phase of enhancements at the Aldersyde Facility, targeting upgrades to existing instrumentation, measurement and process system controls that are needed to improve production run time, reduce operating costs and optimize process management. Cielo also anticipates completing engineering feasibility reviews for the following: - Design of a distillate fractionation system to improve the quality and value of the diesel and naphtha produced at the Aldersyde Facility and enable the production of kerosene in commercial volumes.
- Design of UMO pre-treating and pre-conditioning to drive a more consistent carrier fluid for utilization in the conversion of wood waste into distillate, as well as potentially generating an additional revenue stream by flashing off the light ends of the UMO which could be captured as diesel.
Following commissioning and start-up of the Aldersyde Facility, the Company's strategy is to generate revenue streams that can assist in funding future projects and apply the operational experience and philosophy from the Aldersyde Facility to larger full-scale facilities. |