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Montreal, July 13, 2020 Ecolomondo Corporation (TSX-V: ECM) (the “Company” or “Ecolomondo”) reports that the construction of its new, first of its kind, Thermal Decomposition (“TDP”) turnkey facility, that is being built in Hawkesbury, Ontario, continues to progress according to plan and on budget.
Construction of the building made substantial progress during the period ended June 30, 2020. Management estimates that construction of the building will be sufficiently completed before the end of the third quarter to begin receiving the plant equipment. Commissioning is scheduled to begin in the third quarter of 2020 and the Company still anticipates starting commercial operations in the fourth quarter of 2020.
The building is approximately 46,300 sq.ft in size, rectangular in shape, with ceilings of 31ft high and sitting on approximately 13 acres of land.
To view updates and more pictures of the construction of the Hawkesbury TDP facility, please visit the Company’s website at www.ecolomondo.com.
The Company informs that all long-lead equipment items are currently being manufactured on budget and on schedule, in particular reactors, fractionation, recovered carbon black, flare, shredding, scrubbing. Management estimates that as of the end of the second quarter of 2020, it has placed purchase orders covering approximately 85% of all the equipment, parts and services needed to build the Hawkesbury TDP turnkey facility.
Management projects that direct costs to build the Hawkesbury TDP turnkey facility, including all equipment, land, building and soft costs, should total approximately $37.6 million, of which approximately $32.1 million is expected to come from the proceeds of the project financing loan from EDC and the balance of approximately $5.5 million from the Company, which the Company has already contributed entirely.
Once built, the Hawkesbury facility will be comprised of four different processing departments (shredding, thermal processing, recovered carbon black processing, oil fractionation) and, once fully operational, this facility is expected to process a minimum of 14,000 tons of tire waste per year and produce 5,300 tons of recovered carbon black, 42,700 barrels of oil, 1,800 tons of steel and 1,600 tons of process gas.
Management is planning to use the Hawkesbury facility as the technological showcase of a TDP turnkey facility in commercial operations, an important step in the Company’s marketing and global growth strategy.
Impact of the COVID-19 Crisis on the Company
The Company has taken and will continue to take all necessary actions needed to reduce the impact of the crisis created by the coronavirus. The Company expects that the milestone to complete the plant under construction in Hawkesbury, Ontario, will not be materially impacted by the current situation. It is to note, it is impossible to determine with certitude the long-term consequences and financial implications if the current situation persists.
About Ecolomondo Corporation
Ecolomondo is a cleantech Canadian company that is commercializing its waste-to-products technology. The Thermal Decomposition Process (“TDP”) converts hydrocarbon waste into marketable commodity end-products, namely carbon black substitute, oil, gas and steel. Technologies such as Ecolomondo’s are expected to play an important role in resource recovery needed in today’s circular economy.
The Company’s main revenues will come from the sale of TDP turnkey facilities and royalties from their operations. TDP facilities will generate revenues from the sale of end-products, tipping fees and carbon credits. Ecolomondo’s first focus is to market TDP turnkey facilities that use scrap tires as a feedstock, because scrap tires yield end-products with a higher commercial value, especially the recycled carbon black.
Management believes that technological breakthroughs in areas of emissions, process optimization, automation, end-product processing and safety, position Ecolomondo to become an industry leader in the resource recovery of hydrocarbon waste.
Cautionary Note Regarding Forward Looking Statements
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 assurances 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.