Future of Renewable Fuels Turning Waste Into High Grade Renewable - - PowerPoint PPT Presentation

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Future of Renewable Fuels Turning Waste Into High Grade Renewable - - PowerPoint PPT Presentation

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Investing in the Future of Renewable Fuels Turning Waste Into High Grade Renewable Diesel Cielo Waste Solutions Corp. November 2017 CSE:CMC Disclaimer This presentation contains certain statements that may be deemed forward -looking

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Investing in the Future of Renewable Fuels

Turning Waste Into High Grade Renewable Diesel CSE:CMC

Cielo Waste Solutions Corp.

November 2017

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Turning Waste Into Low Carbon Fuel CSE:CMC

This presentation contains certain statements that may be deemed “forward-looking statements”. All statements in this document, other than statements of historical fact, that address events or developments that Cielo Waste Solutions Corp. (“Company”) expects to occur, are forward looking

  • statements. Forward looking statements are statements that are not historical facts and are

generally, but not always, identified by the words “expects", “plans", “anticipates", “believes", “intends", “estimates", “projects", “potential" and similar expressions, or that events or conditions” will”, “would", “may", “could" or “should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward looking statements include, failure to success fully negotiate or subsequently close such transactions, inability to obtain required shareholder or regulatory approvals and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking

  • statements. Forward looking statements are based on the beliefs, estimates and opinions of the

Company’s management on the date the statements are made. The Company undertakes no

  • bligation to update these forward-looking statements in the event that management’s beliefs,

estimates or opinions, or other factors, should change.

Disclaimer

Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel

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Cielo Waste Solutions Corp: CSE:CMC Market Data

  • 52-Week Trading Range

$0.035-$0.27

  • Shares Outstanding, Basic (mm)

137.5

  • Warrants & options, Diluted (mm)

196.2

  • Market Capitalization (mm)*

~$17.8

  • Net debt Q3/17E (mm)

$2.5

  • Enterprise value (mm)

$20.3

  • *as of Nov 21/17

Corporate Profile

Turning Waste Into Renewable Diesel Cielo Waste Solutions Corp.

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  • Canadian public company trading on the Canadian Securities Exchange
  • Symbol: CMC.
  • Cielo has an exclusive global license to a technology that can convert

multiple different waste streams into renewable diesel at a considerable lower cost than biofuel companies.

  • Currently, Cielo is commercializing a game-changing technology.
  • Waste to Renewable Diesel refinery company.

Who is Cielo?

Turning Waste Into Renewable Diesel Cielo Waste Solutions Corp.

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  • Currently executing Phase 1 of development program
  • Expected to provide operational updates regularly
  • Provincial Permit grant expected in a few months
  • Full scale continuous operations expected shortly after grant of

provincial permit

  • Expectation of first production by spring 2018
  • Phase II expected start months after Phase I
  • 2018 expected to be packed with activities

Near Term Catalysts

Turning Waste Into Renewable Diesel Cielo Waste Solutions Corp.

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Progress to Date: R&D Phase

  • Reviewed over 200 upgrading technologies
  • Performed detailed evaluation on 22 technologies
  • Selected technology that converts multiple feedstocks - sawdust, plastics,

tires, construction debris and municipal organic and solid waste - into renewable diesel

  • Started R&D in November 2004 – multi million spent to date

Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel

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Demonstration Pilot

Cielo Waste Solutions Corp.

  • Advanced proprietary patent pending process
  • In operations for over 4 years
  • Tested wide range of waste feedstocks and

extensively researched proprietary catalyst using Demonstration Plant

  • Obtained multiple third party validation of process
  • Obtained 5 grants from NRC/IRAP

Turning Waste Into Renewable Diesel

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Key Milestones Achieved in 2017:

  • April 18, 2017 purchased $10.2M High River, AB bio-diesel plant for $2.3M
  • Municipal Development Permit granted
  • Provincial Permit submitted expect approval in the near term
  • Trades and Fabrication contracts awarded
  • Construction has commenced
  • Completed over $6.8MM of debt and equity financing to secure full funding

for Phase I

Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel

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Business Plans

  • Completed
  • Secured feedstock supply for entire production volume for both Phase I & II
  • Signed off-take agreement to sell all production
  • Phase I – Retrofit Pilot into a 356 l/h commercial refinery
  • Phase II – 1,824 l/h refinery to be added
  • Finalizing drawings
  • Expected to start shortly after Phase I in operations
  • Phase III – minimum of 5 cookie cutter plants next door to Edmonton

Waste Landfill

Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel

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Benefits of First Plant in High River

  • Secured plant & land
  • Demo Plant is being retrofitted into a continuous

flow refinery at a Capex of less than $2.0M

  • 2.45 acre site fully serviced with land use zoning in

place

  • Only 25 km south of Calgary
  • Close to multiple feedstock suppliers and

contractors

Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel

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Benefits of Second Site in Edmonton

Located near Edmonton Waste landfill :

Anthony Henday ring road & Hwy 16 Offsetting Edmonton Waste Management Centre (large source of feedstock) Suppliers of used motor oil Many large refiners (buyers of the end product) Rail access through neighbouring firms

Secure Gated Site - Class 1A disposal well on property Ample room to build up to twenty model 1,824 l/h refineries

Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel

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Demand for Biodiesel in Canada

Demand is created by provincial and federal requirement for a minimum biofuel content in diesel fuel as follows:

Cielo Waste Solutions Corp.

Locations Blend % Diesel Consumed 2015 Biofuels Required

BC 4.0% 1,852 74 AB 2.0% 4,019 80 SK 2.0% 1,315 26 MB 2.0% 794 16 ON 2.0% 5,427 109 QC 0.0% 3,177 Maritimes 0.0% 1,140 Territories 0.0% 178 Canada 2.0% 17,412 348 Total/Average 3.8% 17.4 Billion L/Y 653 Million L/Y

Turning Waste Into Renewable Diesel

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Overview of Biofuels Market in Canada

Cielo Waste Solutions Corp.

  • Canadian demand represents 43 Cielo refineries similar to High River

Plant size of 15M L/Y (1,824 litres/hour)

  • 400 MLY of Biofuels are produced in Canada
  • 380 MLY of that production is exported
  • No renewable diesel is produced in Canada
  • Renewable diesel receives ~ 25% premium over bio-diesel
  • Unfilled mandated demand in Canada is ~633 MLY
  • USA is the world’s largest importer of bio-diesel, which is heavily

subsidized

Turning Waste Into Renewable Diesel

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Benefits of Cielo Renewable Diesel

  • Affordable: Can be made for $0.49/L vs. ~$1.40/L biodiesel
  • Low Carbon: Carbon intensity ~60% lower than diesel
  • Unlimited Feedstock Supply: Multiple waste streams available 365 days/year
  • Compatible: Same properties as fossil diesel so no extra vehicle maintenance
  • r infrastructure investment needed
  • Long Shelf Life: Can be stored and used year round
  • High Performance: Low Cloud Point - works in very cold temperatures
  • No Blending Limit: Can be used in any blending % with petroleum diesel

Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel

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Cielo Produces A Product that is Higher Quality & Less Expensive

Cielo Waste Solutions Corp.

Biodiesel Renewable Diesel

Production Cost/L $0.36 - $0.50 (Avg $0.43) $0.44 Feedstock Cost/L $0.80 - $1.14 (Avg $0.97) $0.05 Total Cost $1.16 - $1.64 (Avg $1.40) $0.49 Price in Edmonton $1.25/litre $1.52/litre

  • Cielo’s Catalytic Thermal Depolymerisation technology allows

feedstock to be converted in seconds vs hours.

  • Cielo can use a wide range of waste feedstocks that many

companies must pay a disposal fee

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Management Team

  • Dr. Roderick Facey

Cielo Waste Solutions Corp.

  • 30+ years of executive leadership

experience including experience in debt and equity capital markets, strategy and planning, risk management and investor relations.

  • extensive background in business

development, marketing and project development.

Don Allan

President & CEO

Chief Technology Advisor

  • Professional engineer with a

doctorate degree from the University

  • f Alberta
  • Chemical Systems, Structural,

Environmental, Mechanical & Process Engineering Specialist

Michael Yeung, CFA

VP Business Development & Capital Markets

  • Over 15+ years experience in public

and private debt and equity markets

  • Experience in equity, debt, mergers

and acquisitions, capital structure, valuations and research

Turning Waste Into Renewable Diesel

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Management Team (Cont.)

Huong Nguyen

Cielo Waste Solutions Corp.

Process Engineer & Lab Tech

  • Bachelor of Chemical Engineering

and Advanced Mathematics.

  • Extensive skills in process design,
  • peration, maintenance of refineries

and laboratory work

  • 30 years as Professional Civil and

Environmental Engineer

  • Extensive experience in permits,

business strategy, planning and project management

Stuart McCormick

VP Compliance & Regulatory Affairs

Shannon Wyzykoski

Chief Financial Officer

  • over 20 years’ experience working

with rapidly growing and changing companies.

  • the past 10 years as a partner with the

SSCR Corporate Solutions consulting group in Red Deer.

  • Prior

to that she was the CFO/Controller for several oilfield service companies in Central Alberta

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Board of Directors

Don Allan, Chairman

  • President & CEO of Cielo

Robin Ray, Director

  • CGA and Partner, MacNevin & Ray
  • CFO and Director, MLB Industries

Chris Dovbniak, Director

  • Retired instrumentation technician
  • 30 years experience in process management

control and purchasing

Doug MacKenzie, Director

  • CEO of Permolex International
  • 20 year oil industry and biofuels exec.

Mel Angeltvedt, Director

  • President, Bozco Enterprises
  • 30 yrs experience in process and service in the
  • il and gas sector

Turning Waste Into Renewable Diesel Cielo Waste Solutions Corp.

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Exclusive Global License

Cielo Waste Solutions Corp.

  • Cielo has an exclusive global license to the technology from 1888711 Alberta Inc.

(“AlbertaCo”).

  • AlbertaCo has spent over $2.5M advancing the technology.
  • AlbertaCo has applied for a patent on the technology.
  • Excluding the first refinery AlbertaCo receives from Cielo;
  • i. A royalty of $0.05 per liter on 100% of production; and
  • ii. A one time commission fee of $500 for every L/Hr of capacity of each such

Refinery

  • Cielo has the right to purchase AlbertaCo’s IP, Pending Patent, royalties and

commissions.

  • Three of the Five board members, which include the President, are involved in
  • AlbertaCo. The other two are major shareholders in Cielo.

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EBITDA Projections for 356 l/h High River Refinery

Turning Waste Into Low Carbon Fuel Cielo Waste Solutions Corp.

Total Revenue (356 l/h)

$ 4,448,051 Direct Expenses: Total Direct Labour $868,380 Carrier Fluid - Used Motor Oil $482,997 Feedstock - MSW & Biomass Material Purchase Cost $103,789 Residuals Disposal (landfill & transport cost) $ 45,114 Catalyst Consumption Costs $171,170 Fuel Conditioning Chemical Costs $ 2,427 Royalty Expense $166,967 Electricity Cost $510,723 Communications $ 3,000 Insurance $ 83,000 Maintenance $ 60,000 Potable Water Cost $ 1,765 Natural Gas Consumption Cost $ 31,200 Spare Parts $ 18,000 Misc. $425,904 Contingency $120,000 Total Plant Expenses

$3,094,440

PROJECTED EBITDA

$1,353,612

Turning Waste Into Renewable Diesel Cielo Waste Solutions Corp.

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EBITDA Projections for Phase II -1,824 L/H Refinery

Total Revenue (1,824 l/h) $ 21,495,767 Direct Expenses:

Total Direct Labour $ 1,002,540 Carrier Fluid - Used Motor Oil $ 1,983,447 Feedstock - MSW & Biomass Material Purchase Cost $ 363,078 Residuals Disposal (landfill & transport cost) $ 270,391 Catalyst Consumption Costs $ 1,364,033 Fuel Conditioning Chemical Costs $ 12,537 Royalty Expense $ 746,381 Electricity Cost $ 504,449 Communications $ 9,600 Insurance $ 120,000 Maintenance $ 60,000 Potable Water Cost $ 3,836 Natural Gas Consumption Cost $ 142,538 Spare Parts $ 70,000 Misc. $ 425,904 Contingency $ 300,000

Total Plant Expenses

$ 7,378,734 PROJECTED EBITDA $ 14,117,033

Turning Waste Into Renewable Diesel Cielo Waste Solutions Corp.

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Key Takeaways

  • Proven Technology - $17.4 M spent to develop proprietary process that has been

tested and multiple 3rd party validated in production scale demonstration plant

  • Exclusive License - Cielo holds an exclusive global license to the proven

technology on favorable terms.

  • Patent – Process Patent has been filed in the USA
  • Lowest Cost Producer – 50% lower than the import price/liter
  • Ability To Use Waste Feedstocks – Unlimited availability at a very low cost
  • Low Carbon End Product - ~60% reduction in GHG emissions, carbon credits will

be available for resale

  • Superior Product – Only biofuel that is fully compatible with fossil diesel
  • Regulated Demand of 653 MLY - Canadian Regulators are indicating the

mandated minimum blend of renewable diesel will be increased once domestic supply is available

Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel

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Key Takeaways (Cont.)

  • No Domestic Supply – No major renewable diesel producers in Canada
  • Guaranteed Buyer – Orders for 100% of production at the import price
  • Construction Started - Purchased $10.2M idle bio-diesel plant for $2.3M and have now begun retrofitting the

existing demo plant

  • Closed $3.5MM Credit Facility– with a private Alberta based company
  • Closed $3.3MM Private Placement – Strong support as target raise was only $3.0 MM
  • Permits – Municipal Permit approved, Provincial Permit filed
  • Tremendous Growth Potential – Rapidly growing global demand
  • Subsidies – Cielo does not require any subsidies to be profitable
  • First Cash Flow – Expected in months not years
  • EBITDA POTENTIAL – $14 Million / Yr per each 1,824 liter/hour (15M liters/year) Refinery

CIELO IS POISED FOR SIGNIFICANT NEAR TERM GROWTH AND PROVIDE A SOLUTION TO THE WORLD’S GARBAGE PROBLEM

Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel

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Contact Info:

Turning Waste Into Low Carbon Fuel CMC: CSE

Operational Headquarters Bridgeview Place II 5114-58st Red Deer, Alberta, T4N 2L8 Tel: (403) 348-2972 Fax: (403) 343-3572 www.cielows.com

Donald Allan, President & CEO donallan@cielows.com Michael Yeung, CFA VP Bus. Dev. & Capital Markets michaelyeung@cielows.com