Business
Cielo Announces Update to Capital Allocation Plans; Continues to Execute Corporate Strategy
Revised Plan Addresses Current Inflationary Environment Shifts Focus to Research & ...
About this update from Cielo Waste Solutions Corp.
[{"type":"text","content":"Cielo Announces Update to Capital Allocation Plans; Continues to Execute Corporate StrategyRevised Plan Addresses Current Inflationary Environment Shifts Focus to Research & Development Demonstration FacilityVANCOUVER, BC / ACCESSWIRE / May 12, 2022 / Cielo Waste Solutions Corp. (TSXV:CMC; OTCQB:CWSFF) (\"Cielo\" or the \"Company\"), a waste-to-fuel environmental technology company, today announced a revised capital allocation plan to meet its commercial waste-to-fuel facility development goals. The fiscally prudent measure to pause Aldersyde Phase II development is being taken to mitigate the inflated cost of materials, equipment, labour, and services in the current market. Recently issued pre-construction cost estimates of approximately $18MM to $20MM represent an increase of at least fifty percent, with further escalation a distinct probability. The revised plan will continue to focus near-term capital investment on the previously announced 60-litre per hour (\"lph\"), research and development demonstration (\"R&D\") facility. This change will reduce exposure to the inflationary cost environment while progressing the Company in the quickest and most cost-effective way to the design of a large-scale commercial facility. Crucially, this path forward will generate data for detailed economic models that will capture waste infeed composition, production volume, pricing, and capital costs to facilitate near-term design of full-scale commercial facilities.Mr. Gregg Gegunde, Chief Executive Officer and Chief Operating Officer, commented: \"Market conditions have changed, and we have responded with an updated capital allocation plan to stay on course with our strategy. We are focusing on the planned 60-lph facility to obtain the data required to continue developing our proprietary technology using multiple waste infeeds to produce fuel. With this data in hand, and by leveraging the engineering completed by Stantec, Cielo will be well placed to design and construct a full-scale commercial facility.\"Corporate Strategy Remains UnchangedCielo's strategy continues to be the commercialization of its waste-to-fuel technology. The near-term focus is to profitably produce diesel, naphtha, and kerosene from multiple feedstock waste materials. The 60-lph facility is expected to achieve a number of goals to facilitate Cielo's strategy:Pr...