Cielo Waste Solutions Corp. announces that Renewable U Medicine Hat Inc. has secured an agreement in principle to purchase 80 acres of land in Cypress County, Alta., southeast of Medicine Hat.
“Renewable U Medicine Hat, after scoping out multiple locations, presented us the land in Cypress County, which is perfectly located and ideal for future expansion opportunities,” says Don Allan, president and CEO of CIELO. “We are extremely excited to see our partners show their conviction and belief in CIELO by initiating this significant investment. This will allow CIELO to move forward with the applicable regulators and local residents to apprise them of our plans to build a green facility to convert waste into renewable fuels.”
The deal is expected to close on or before July 1.
Renewable U Medicine Hat is the company with which CIELO has entered into a Memorandum of Understanding to fund all aspects of building and placing on production a joint venture (JV) facility in, or within, 50 kilometres of Medicine Hat.
The JV facility is being designed and engineered to initially convert up to eight tonnes per hour of multiple waste feedstocks (about 65,000 tonnes/year) into 4,000 litres an hour 32.7 Million litres/year of renewable fuels that can be blended into conventional highway transportation, marine and aviation/jet fuels.
“We are extremely pleased to have found a location that is situated within Cypress County where local investors and partners reside that share our vision of creating a world class facility,” says Renewable U Medicine Hat’s Director and Chief Operating Officer, Ryan Jackson.
It is contemplated that the JV facility will operate 341 days a year and cost approximately $50 million to build and commission. During construction, CIELO expects to employ approximately 50 – 70 people and, once on production, CIELO expects that the JV facility will employ approximately 25 full-time employees.
