Northstar Clean Technologies (ROOF.V), a Canadian clean-tech company focused on the sustainable recovery and reprocessing of asphalt shingles, announced today that it had signed a purchase order agreement with a major international asphalt roofing systems manufacturer.
According to the deal, the customer has agreed to purchase 80 tonnes of liquid asphalt produced from the reprocessing of single-use asphalt shingles at the company’s shingle reprocessing facility in Delta, BC.
Rates haven’t been disclosed but are based on current market pricing for liquid asphalt. The purchased product will be a mutually agreed upon specification.
Before the deal was signed, the customer carried out an analysis on Northstar’s liquid asphalt and it now intends to incorporate the product into its own proprietary product. The customer will then carry out further testing on the result.
If tests are successful, this transaction may lead to a long-term off-take agreement for the Empower Pilot Facility and potentially other North American locations.
Aidan Mills, president, CEO & director of Northstar, commented on the deal, “The Purchase Order is a major milestone for Northstar. As I have previously mentioned, there are three industrial sectors that we are targeting: paving, shingle manufacturing, and flat roofing systems. We are therefore delighted that having completed the first stage of analysis on Northstar’s liquid asphalt, this Customer, a major international roofing systems manufacturer, is moving to the next stage of product manufacturing and advanced testing. If successful, we expect to establish a long-term multi-year off-take agreement for the Empower Pilot Facility with the potential to extend our supply for further facilities as we deploy our proprietary technology in markets across North America. We continue to focus on building our relationships with sophisticated buyers who will use our reprocessed liquid asphalt across Canada and internationally. We expect to deliver the Product to the Customer in Q4 2022. This is the first sale of liquid asphalt by Northstar, which is an important step for the Company and validates the quality and demand for our liquid asphalt outputs. In addition, and importantly, this is also the first revenue generation for Northstar, another element of this major milestone.”
The agreement between Empower Pilot Facility and LaFarge Canada to supply liquid asphalt during its first year of commercial operation is no longer in effect.
At the beginning of August, Northstar announced that it had received a brokering license from Metro Vancouver for the collection of Asphalt shingles and associated tipping fees at the company’s Empower Pilot Facility.
At the time of the above release, tipping fees for construction and demolition waste at the Vancouver landfill in Delta was approximately $130 CAD per tonne. Empower’s facility is conveniently located just nine kilometres from the Vancouver landfill and approximately 30 kilometres from downtown Vancouver.
When August ended, Northstar reported its Q2 2022 highlights. The company held $2.3 million in cash as of June 30, 2022 and had a working capital surplus of $1.7 million.
During that same reporting period, the company announced project upgrade economics for its Calgary Scale Up Facility and completed a $500,000 non-brokered private placement at $0.40 per share in August.
Northstar currently trades at $0.11 per share for a market cap of $11.13 million.
