ECM:CC - Ecolomondo Receives Volume Cap for an US$80 Million Bond from the State of Texas
(TheNewswire)
Montreal, QC – TheNewswire- February 05, 2024 -- Ecolomondo Corporation (TSXV:ECM) (OTC:ECLMF) (the “ Company ” or“ Ecolomondo ”), a cleantech company that designs, builds, operates andcommercializes Thermal Decomposition turnkey plants using itsproprietary Thermal Decomposition Process (“ TDP ”) recyclingtechnology, announces it has received a volumecap for an US$80 million bond from the State of Texas.
The Texas Bond Review Board issued a Certificate ofReservation, which states “The amount of US$80 million is herebyreserved for Shamrock Economic Development Corporation(“ Shamrock EDC ”, the Issuer) to be used for an Exempt Facility Bond(Ecolomondo Project)”.
To promote the sale of the Bond and prepare formaldocumentation, the Company has secured the services of ZieglerInvestment Banking (investment banker), Raftelis Financial ConsultantsInc. (financial consultant), Butler Snow LLP (law firm representingthe Shamrock EDC), and Parker Poe LLP (law firm representing theCompany).
The Company plans to build and operate a six-reactorturnkey TDP facility in Shamrock, Texas. This will be the Company’sfirst US-based waste-to-resources TDP plant capable of processing andrecycling end-of-life tires (“ ELT ”) into saleable recycled commercialresources for re-use. The facility constructionis expected to be officially launched by the end of 202 4 with completion expected during 2026.At this time, projected cost to build the Shamrock facility isprojected to total approximately US $93 million, however with theexperience garnered building the Hawkesbury facility, the Company isconfident it can lower the cost to build.
The capital portion of the project is expected to comefrom a combination of a capital raise, jointventure partners, fixed assets and other considerations.
During the last 3 years, Ecolomondo has been and isstill working very closely with the Shamrock Economic DevelopmentCorporation (“ ShamrockEDC ”, the issuer of the Private ActivityBond). The Shamrock EDC understands very clearly the local problemscaused by scrap tires and the economic and environmental benefits thata 6-Reactor TDP facility will bring to the region.
Crystal Hermesmeyer, Director of the Shamrock EDC,notes that “the Shamrock EDC has tirelessly pursued the arrival ofEcolomondo, demonstrating a steadfast commitment to not onlyinitiating but also nurturing the success of this venture for years tocome. For example, through strategic collaboration with and from asubsidy from the Economic Development Administration, the Shamrock EDCspearheaded the implementation of a multi-million dollarinfrastructure upgrade, including a new lift station and sewer lines.Additionally, the unwavering support from Wheeler County, exemplifiedby a ten-year sliding scale abatement, ensures a smooth transitioninto full-scale operations post-construction with a 100% taxabatement. The City of Shamrock played a pivotal role by facilitatingthe installation of water lines and fire hydrants, further solidifyingthe foundation for Ecolomondo's prosperous journey in Shamrock, Texas.Additionally, the Shamrock EDC has facilitated a private activity bondin the amount of US$80 million dollars, making the project highlyattractive to investors due to its tax-exempt financing opportunity.The Shamrock EDC has been keenly aware of the pressing environmentalissue posed by scrap tire waste in the state of Texas. With theclosest disposal facilities located manyhundreds of miles away, communities have been burdened with managingthis pervasive problem. The Shamrock EDC has actively collaboratedwith other counties and municipalities in Texas to address this issue,recognizing the shared burden experienced statewide. The prospect ofhaving a sustainable solution to this environmental dilemma is trulyremarkable. Moreover, the positive impact this will have on our regionand the environment is immeasurable, marking a significant steptowards a cleaner, greener future for Texas and itscitizens.”
Processing capabilities for the Shamrock facility isprojected to be an unprecedented 5.5M per year of end-of-life tires,yielding approximately 35.1M lbs of recovered carbon black, 128,100barrels of oil, 11.9M lbs of steel, and 10.6M lbs of syngas; roughlythree times the size of the Company’s Hawkesbury (Ontario) plantoutput.
The Company entered last year into a binding landpurchase agreement for a 136.76 acre parcel of land on I-40 inShamrock, Texas, for the proposed plant site. In the bindingagreement, the Shamrock Texas EDC has purchased the land and sold itto Ecolomondo for US $1.00 in consideration for selecting Shamrock,TX, as the location for its US launch.
Shamrock TexasProject
The Company, along with the Shamrock EDC, is inadvanced discussions with feedstock suppliers of end-of-life tires.The Company is very confident and expects it will secure all feedstockneeded to operate a 6-reactor facility in Shamrock county.
In addition, the Company is in final discussions withan EPC contractor to deliver a complete turnkey facility fully builtand commissioned.
The Shamrock facility will serve as the Company’sflagship into the US market. Coupled with the production capacity ofthe Hawkesbury (Ontario) facility, the Company will produce over21,000 metric tons of rCB per year that will be available to serve theNorth American market.
Ecolomondo’s strategy is to retain a controllinginterest in US-based turnkey TDP facility that it builds through itsUS holding company, Ecolomondo Corporation U.S.A. Inc., a wholly-ownedsubsidiary of Ecolomondo Corporation. As with Shamrock, the Companyintends to work with local, state and federal authorities to buildfuture TDP turnkey plants throughout the US.
“We have worked for many years to develop and refineour proprietary technology. Ecolomondo now holds some of the mostadvanced commercially available technology and capacity for processingELTs, and we are looking forward to this next strategic growthphase” said Eliot Sorella, President and Chief Executive Officer ofEcolomondo. “As Ecolomondo finalizes commercialization of itsHawkesbury (Ontario) TDP facility, the Company is beginning focus onits international growth plans. Ecolomondo’s strategy is to become afull-service TDP facility operator and to be a global manufacturer andvendor of recycled resources: rCB, oil, steel, fibre, and syngas”,added Mr. Sorella.
WEBINAR . TheCompany will have a webinar on February 8.
You can register with the following link :
https://globalonemedia.zoom.us/webinar/register/WN_26U3-TtdTlO36b2QKUVJGg#/registration
About Ecolomondo Corporation
Ecolomondo Corporation is a Canadian cleantech company that prides itself after its proprietary ThermalDecomposition technology TDP which is headquartered in Québec, Canada . It has a 25-year history and during this time has been focused on its development of itstechnology and the deployment of TDP turnkeyfacilities . TDP recovers high value re-usable commodities from scrap tire waste, notably rCB, oil , syngas, fiber and steel. Ecolomondo expects to be a leading player in the cleantechspace and be an active contributor to the global circular economy. Ecolomondo trades in Canada on the TSX VentureExchange under the symbol (TSXV:ECM) and in theUnited States under the symbol (OTCQB:ECLMF). To learn more, visit www.ecolomondo.com
About the Hawkesbury Plant – A2-Reactor TDP Facility
The Hawkesbury facility building is 46,200 sq.ft andhas an impressive indoor clearance of 28 feet. It is state-of-the-artand houses 4 main production departments, tire shredding, thermaldecomposition, recycled carbon black refining and oil fractionation.Once fully operational, this facility is expected to process 1.3M ofscrap tires per year and produce 8.7M lbs of recovered carbon black,34,608 barrels of oil, 2.9M lbs of steel, and 2.6M lbs of processgas.
About the Shamrock Project – A6-Reactor TDP Facility
Processing capabilities for the Shamrock facility isprojected at 5.5M per year of end-of-life tires, yieldingapproximately 35.1M lbs of recovered carbon black, 128,100 barrels ofoil, 11.9M lbs of steel, and 10.6M lbs of syngas; roughly three timesthe size of the Company’s Hawkesbury (Ontario)plant output. Facility construction is expected to begin by the third quarter of202 4 with completionexpected by the end of the fourth quarter of 2025. Projected cost to build is approximately US$93 million.
Our Mission , Vision & Strategy
Ecolomondo’s mission is to be a contributingparticipant in a dynamic Circular Economy and to increase shareholdervalue by producing and supplying large quantities of recoveredresources to be re-used in the manufacture of new products.
Ecolomondo’s vision is to be a leading producer andreseller of recovered resources by building and operating TDPfacilities, strategically located in industrialized countries, closeto feedstock, labor and offtake clients.
Our strategy is to become a major global builder andoperator of TDP turnkey facilities, for now specializing in theprocessing of ELTs. Our intent is to expand aggressively in NorthAmerica and Europe. Our experience and modular technology should helpus get there faster and better. We plan to keep performing ongoingresearch and development to ensure that Ecolomondo remainstechnologically advanced.
ISCC Certification
A confirmation of the Company’s successful processlies in the recent International Sustainability and CarbonCertification (“ISCC”) for its Hawkesbury TDP facility, anotherstep forward that should help improve demand for TDP. ISCC is a GlobalSustainability Certification System and offers chain-of-custodycertification systems to ensure traceability and feedstock identity,which can add commercial value to the Company’s end-products as theyremain traceable in the supply chain.
ISO Certification
The Company has obtained ISO 9001:2015, ISO 14001:2015& ISO 45001:2018 certification of its Integrated Management System(IMS), which acknowledges Ecolomondo’s commitment for quality,environmental impact and health and safety at work.
Environmental, Social &Governance (ESG)
On the social aspect the Company plans to measureglobal health and safety, injury rate and gender diversity, andfinally in the corporate governance aspect, the Company is measuringethics and anticorruption, ESG reporting and board independence.
About TDP
The TDP process is technically proven and moreadvanced than most other pyrolysis technologies.Over the years, our Technological teams were able to overcome alluncertainties that plagued most competitors especially inthe s e areas:pre-filtration, reactor cooling, reactor rotation, water recycling, processing of rCB,(hydrocarbon removal), mass monitoring, heat curve development,humidity and water removal, safety testing, system automation,emissions control and monitoring .
TDP is Environmentally Friendly –CO 2 Reduction
By producing rCB, TDP reduces GHG emissions by 90%versus the production o fvirgin carbon black. The production of rCB at the Hawkesbury andShamrock facilities are expected to reduce CO2 emissions by 22,400 and 67,200 tons per year,respectively.
Please follow Ecolomondoon Twitter, Facebook, LinkedIn, Instagram and YouTube.
Twitter:
Facebook:
LinkedIn:
Instagram: https://www.instagram.com/ecolomondoecm/
YouTube:
Ecolomondo Corporation Contact
Eliot Sorella
Chairman and Chief Executive Officer, Ecolomondo
Tel: (450) 587-5999
esorella@ecolomondocorp.com
Cautionary NoteRegarding Forward Looking Statements
The information in this news release includes certaininformation and statements about management's view of future events,expectations, plans and prospects that constitute forward lookingstatements. These statements are based upon assumptions that aresubject to significant risks and uncertainties. Because of these risksand uncertainties and as a result of a variety of factors, the actualresults, expectations, achievements or performance may differmaterially from those anticipated and indicated by theseforward-looking statements. Although Ecolomondo believes that theexpectations reflected in forward looking statements are reasonable,it can give no assurance that the expectations of any forward-lookingstatements will prove to be correct. Except as required by law,Ecolomondo disclaims any intention and assumes no obligation to updateor revise any forward-looking statements to reflect actual results,whether as a result of new information, future events, changes inassumptions, changes in factors affecting such forward-lookingstatements or otherwise.
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
Copyright (c) 2024 TheNewswire - All rights reserved.