CVW CleanTech Inc V.CVW

New info

[Johnbet]

CVW CleanTech Receives Interest From Tier 1 Engineering Firms

 

CVW CleanTech has received interest from experienced Tier 1 engineering firms for engineering, procurement, and construction management (EPCM) services for the implementation of a potential Creating Value from Waste™ (CVW™) project, subject to certain conditions including definitive scope documentation. The interested firms have working knowledge of CVW™, in part through review of our front-end engineering design (FEED) studies and other documentation, and through their extensive experience in the design and construction management of commercial oil sands facilities. These engineering firms have partnerships and working relationships with the primary construction companies in the oil sands mining space.

The Company believes there will be an opportunity to lock-in favourable EPCM and construction contracts that will deliver additional comfort on project execution to our stakeholders. As discussed with the EPCM firms, contingencies would be reduced as project definition is enhanced through the detailed engineering process, offering CVW CleanTech the potential to obtain fixed price agreements within Association for the Advancement of Cost Engineering (AACE) cost estimation accuracy ranges. We anticipate that this improved cost certainty can be achieved at project definition consistent with Class II capital cost estimates intended for control and/or contract tender based on detailed unit cost with forced detailed unit take-offs.

The engineering firms confirmed their interest and ability to execute on a CVW™ project, re-iterating a disciplined process that would involve:

• re-FEED activities to update the project towards current externalities, align with site-specific requirements, and refresh the capital and operating cost estimates,
• followed by detailed engineering

to bring the CVW CleanTech facility to an AACE Class II level of project definition. Consistent with major project executions, procurement and early works activities would overlap with detailed engineering activities to optimize the build schedule and leverage seasonality. We expect that the engineering activities would take up to 18 months, and a 36 month construction and commissioning schedule would deliver a first of its kind commercial installation of CVW^TM technology in four years from a financial investment decision.

CVW CleanTech’s experience in oil sands and mineral sands projects, the execution experience of EPCM firms and oil sands producers, as well potential active participation from Indigenous communities stewarding important socioeconomic and environmental project attributes, will form a strong partnership to successfully deliver a first commercial installation.