GHG savings increase Last 2 MD&As
GHG Credits
Based on conversations with the Company’s greenhouse gas qualification consultants, Radicle (formerly Carbon Credit Solutions Inc.) and GHD Group PTY Ltd. ( “GHD”), the Company expects the ReGenTM technology will qualify for greenhouse gas credits. In June 2022, GHD completed its Lifecycle Assessment study (“LCA”) for the Company’s proposed 5,600 bpd Texas Facility. In its report, GHD used greenhouse gas (“GHG”) lifecycle analysis to compare the global warming impact of ReGen III’s process to the production and end of life scenarios of base oils. Based on GHD’s Scope 1-3 emissions analysis, GHD concluded that the lifecycle of carbon dioxide equivalent (“CO2e”) emissions from the Company’s ReGenTM process are expected to be 82% lower than traditionally refined base oils combusted at end of life. Furthermore, GHD stated that using the ReGenTM process may reduce up to 903,000 mt CO2e / year from entering the atmosphere by preventing combustion at end-of-life and by producing base oils more efficiently than the equivalent production from virgin crude oil. This would be the equivalent of removing 195,000 passenger vehicles from the road for a year based on the United States Environmental Protection Agency’s GHG equivalency calculator. Based on these findings, the Company continues to explore opportunities to monetize GHG credits from its Texas facility.
MDAs dated May 26, 2022 and earlier
Based on conversations with the Company’s greenhouse gas qualification consultants, Radicle (formerly Carbon Credit Solutions Inc.) and GHD Group PTY Ltd., the Company expects the ReGenTM technology will qualify for greenhouse gas credits. Based on the August 2010 Greenhouse Gas Savings Study report conducted by Conestoga- Rovers & Associates on behalf the British Columbia Used Oil Management Association (the “Conestoga-Rovers Report”), the Company believes that the USGC Facility could reduce GHG equivalent emissions by up to 725,000 tonnes per year, versus the burning or disposal of UMO. The Company may receive voluntary GHG credits sold via the American Carbon Registry and may generate additional annual revenues for the sale of these credits. Based on a review of the United States Environmental Protection Agency’s GHG equivalency calculator the life-cycle assessment carbon credits that are projected to be generated by the Company from the USGC Facility represent the equivalent of eliminating the emissions generated by 157,000 internal combustion engine powered cars annually.