Non-dilutive funding will cover $200,000 of the estimated $675,000 engineering cost related to Northstar's planned expanded-capacity asphalt shingle reprocessing scale up facility in Calgary, Alberta
The application to Alberta Innovates was Northstar's first of a broad range of government funding applications Northstar is progressing related to the Calgary scale up facility
Northstar Clean Technologies Inc. (TSXV: ROOF) (OTCQB: ROOOF) ("Northstar" or the "Company") is pleased to announce that it has executed an investment agreement (the "Investment Agreement") dated March 3, 2022 with Alberta Innovates, a provincial Crown corporation and Alberta's largest research and innovation corporation. Alberta Innovates reviewed Northstar's application and approved a total of $200,000 in funding towards the estimated $675,000 of direct engineering costs. Northstar is required to use this funding to pay for a portion of the engineering costs for its planned expanded-capacity asphalt shingle reprocessing scale up facility in Calgary ("Calgary Empower Facility"), which was previously announced on March 17, 2022 .
Dr. John Zhou , Vice President, Clean Resources of Alberta Innovates, stated, "Diverting waste from landfill reduces land disturbance and GHG emissions, while also providing products consumers need. Technologies enabling a circular economy, advanced materials, and energy innovation are creating jobs and enhancing sustainability in Alberta ."
Mr. Aidan Mills , President & CEO and Director of Northstar stated, "As part of our engagement strategy at the federal, provincial, state, and municipal levels of government, we are progressing a wide range of non-dilutive funding applications. For Calgary , those applications cover engineering, procurement, construction, commissioning, and operational ramp up. We are therefore thrilled to receive the first award from this broad range of grant applications, providing support for our first activity: engineering design. This successful application reinforces our belief that our services and technology strongly appeal to governments. The award from Alberta Innovates recognizes the value of our proprietary clean technology that can not only divert between 30,000 to 50,000 tonnes of discarded asphalt shingle waste from Calgary landfills, but can place the end products of liquid asphalt, aggregate, and fiber back into the market. As governments increase their focus on zero waste, Northstar is positioned to lead the transition of asphalt shingles from depositing in landfills to repurposing in the circular economy. We expect this level of government support to continue covering costs with both the Calgary Empower Facility and future planned facilities. We will inform the market on subsequent awards in due course."
The $200,000 in funding was awarded under Alberta Innovates' Bioenergy Program. The transaction was approved by Alberta Innovates management. The investment will be paid in accordance with agreed milestones for the project.
Northstar and Alberta Innovates have both approved the Milestone Reporting and Payment Schedule ("MRP"). The completed MRP is used to define the project term and project costs in the Investment Agreement.
Northstar's Empower Pilot Facility in Delta, British Columbia , recently initiated steady-state production. The Company is now producing sustainable low carbon liquid asphalt through its proprietary Bitumen Extraction & Separation Technology ("BEST"). The Empower Pilot Facility reprocesses discarded single-use asphalt shingles into liquid asphalt, fiber, and aggregate, allowing these products to enter the circular economy while diverting waste from landfills. Our Calgary Empower Facility is expected to build on the Empower Pilot Facility through the engineering design study that Alberta Innovates has generously supported through its Bioenergy Program.
Issuance of Stock Options
The Company announces it has issued 200,000 stock options to an officer at an exercise price of $0.35 for a 5-year term, to vest as to 25% on each of 6, 12, 18 and 24 months post-issuance. It has also issued 100,000 stock options to an officer at an exercise price of $0.35 , with immediate vesting.
About Alberta Innovates
Alberta Innovates invests in research, innovation and entrepreneurship to drive provincial economic growth and diversity. We ignite the power of innovation through our work with researchers, industry and entrepreneurs to move Alberta to a lower-carbon future, promote the responsible use of land and water, and contribute to the improved health and well-being of Albertans. Alberta Innovates provides technical expertise, entrepreneurial advice and support, opportunities for partnerships, and funding to advance the best ideas. We support a broad range of research and innovation activity – from discovery to use. Collaboration is at the heart of what we do – bringing together bright minds and great ideas.
Learn how Alberta Innovates at www.albertainnovates.ca.
Northstar Clean Technologies Inc. is a Vancouver -based clean technology company focused on the sustainable recovery and reprocessing of asphalt shingles. Northstar has developed a proprietary design process for taking discarded asphalt shingles, otherwise destined for already over-crowded landfills, and extracting the liquid asphalt, aggregate and fiber for usage in new hot mix asphalt, construction products and other industrial applications. Focused on the circular economy, Northstar plans to reprocess used or defective asphalt shingle waste back into its three primary components for reuse/resale in the circular economy. As an emerging innovator in sustainable processing, Northstar's mission is to be the leader in the recovery and reprocessing of asphalt shingles in North America , extracting the recovered components from asphalt shingles that would otherwise be sent to landfill.
For further information about Northstar, please visit www.northstarcleantech.com .
On Behalf of the Board of Directors,
President & CEO, Director
Cautionary Statement on Forward-Looking Information
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. The TSXV has neither approved nor disapproved the contents of this press release.
This press release may contain forward‐looking information within the meaning of applicable securities legislation, which forward‐looking information reflects the Company's current expectations regarding future events. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. Forward-looking statements in this press release include, but are not limited to, statements regarding the anticipated direct engineering costs of the Calgary Empower Facility, the Company's expectation that Northstar is positioned to lead the transition of asphalt shingles from landfills to repurposed uses in the circular economy, and that there will be equally strong interest from non-dilutive funding providers for the construction of its Calgary Empower Facility outside that received from Alberta Innovates both at present and in the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including risks related to factors beyond the control of the Company as well as those risks and uncertainties which are more fully described under the heading "Risk Factors" in the final prospectus of the Company dated June 18, 2021 and in the Company's annual and quarterly management's discussion and analysis and other filings with the Canadian securities regulatory authorities under the Company's profile on SEDAR. The novel strain of coronavirus, COVID-19, also poses new risks that are currently indescribable and immeasurable. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. The Company does not undertake any obligation to update such forward‐looking information whether because of new information, future events or otherwise, except as expressly required by applicable law.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. The Company does not intend, and does not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law.
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SOURCE Northstar Clean Technologies Inc.
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