Ecolomondo Agrees to a Multi-Year Tire Feedstock Supply Contract with Recyc-Quebec
Agreement to Provide 30,000+ Tons of Tire Feedstock and $3.4 Million Tipping & Handling Revenue to Hawkesbury Recycling Facility as it Preps for Launch
Montreal, QC - TheNewswire - October 12, 2021 - Ecolomondo Corporation (TSXV:ECM) (OTC:ECLMF) (the “Company” or “Ecolomondo”), a cleantech company commercializing its proprietary Thermal Decomposition Process (“TDP”) recycling technology and turnkey TDP facilities used to transform tires, plastics and other hydrocarbon waste streams into saleable renewable commodities, is pleased to announce it has entered into a long-term supply agreement (the “Agreement”) with Recyc-Quebec to have over 31,000 short tons of end-of-life-tire (ELT) feedstock (approximately 80% passenger tires / 20% truck tires) delivered to the Company's flagship Hawkesbury TDP recycling facility.
The supply Agreement, subject to an accepted environmental liability insurance policy by Recyc-Quebec, is set to begin in November 2021 and is expected to remain in effect until December 31, 2023. The Company estimates total revenue from tipping fees and related handling charges to be approximately $3,420,000. The subsequent sale of output materials such as recycled carbon black (rCB), pyrolysis oil, syngas and #2 busheling steel will represent additional sources of facility revenue, as would the earning of potential carbon credits.
“The ability to source and handle large waste volumes efficiently is a huge competitive advantage compared to many other recycling technologies,” said Eliot Sorella, Chairman and Chief Executive Officer of Ecolomondo. “The current prices and supply chain disruptions for oil, virgin carbon black and steel are setting the stage for even higher prices for recycled products, further validating our business model for TDP turnkey facilities like Hawkesbury. Higher revenue streams will be transformative -- not only for Ecolomondo but also for the waste-to-products industry as a whole.”
Operating at full capacity with its two reactors, the Hawkesbury plant is expected to process a minimum of 14,000 tons of tire waste per year, yielding 5,300 tons of recycled carbon black, 42,700 barrels of oil, 1,800 tons of steel, 850 tons of fiber and 1,600 tons of process gas.
With the Hawkesbury facility commissioning soon to begin and operations expected to launch in this Quarter, Ecolomondo is well positioned to take advantage of the higher demand and higher price new reality for recycled products.
Thermal Decomposition Process technology is a proprietary waste-to-resources technology that the Company expects will play a critical role in the development and proliferation of the circular economy. TDP is a closed loop, slow pyrolysis technology that operates in an oxygen-free environment using positive pressure and a batch rotary reactor. The process is largely energy self-sufficient. Ecolomondo’s exclusive automation system allows for strict control of cycle times, processing parameters and consistent batch production, resulting in quality, commercial-grade recycled commodities and end-products.
Ecolomondo is a Canadian cleantech company specializing in the commercialization of its waste-to-products operations and proprietary TDP technology. With 25+ years of industry experience and a track record of establishing strong circular economy partnerships, the Company is strategically positioned to become a major global vendor of turnkey TDP facilities that convert hydrocarbon waste into saleable end-products including recycled carbon black, oil, gas and steel.
Revenue growth will come from the sale of fully-automated and energy self-sufficient TDP facilities and royalties from the sale of end-products, tipping fees and carbon credits. Ecolomondo’s initial focus is to aggressively market TDP facility expansion throughout North America, as management has been speaking with numerous public and private sector industry groups looking for breakthrough solutions extending across the entire product management and processing lifecycle.
The information in this news release includes certain information and statements about management’s view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward-looking statements. Although Ecolomondo believes that the expectations reflected in forward looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Except as required by law, Ecolomondo disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.
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For further information please contact:
Chairman and Chief Executive Officer, Ecolomondo
Tel: (450) 587-5999
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