TORONTO, May 01, 2023 (GLOBE NEWSWIRE) -- CHAR Technologies Ltd. (“CHAR” or the “Company”) (TSXV:YES) is pleased to announce the April 27th, 2023, signing of a memorandum of understanding (“MOU”) with the First Nations co-operative Lake Nipigon Forest Management Inc. (“LNFMI”) to collaboratively develop, build, own and operate a wood waste and residues to renewable natural gas (RNG) and biocarbon facility in the Lake Nipigon Region of Northern Ontario. The MOU is a productive step forward for the ongoing project negotiations and development work, and sets out the intended partnership structure to develop, build, own and operate the facility.
LNFMI is a forest management co-operative comprised of four local First Nation Communities who hold the Sustainable Forest License (SFL) on the Lake Nipigon Forest:
- Animbiigoo Zaagi igan Anishinaabek
- Bingwi Neyaashi Anishinaabek
- Biinjitiwaabik Zaaging Anishinaabek
- Red Rock Indian Band
LNFMI oversees an annual harvest operation from the Lake Nipigon Forest, which supplies wood fiber across Northern Ontario. A relationship between CHAR and LNFMI will provide long-term wood waste feedstock security to support not only the initial RNG and biocarbon facility operations, but future opportunities to scale up and increase production capacity.
“LNFMI is thrilled to have signed our MOU with CHAR for the development of a new RNG and Biocarbon Facility on the Lake Nipigon Forest,” says LNFMI President Theresa Nelson. “This opportunity will provide employment for the memberships of the four First Nation partners, as well as a steady, yearly revenue stream for the continual development of our communities. It will also find a home for wood waste and residues from the Lake Nipigon Forest, ensuring an environmentally sustainable solution for the Region as a whole.”
The proposed Lake Nipigon facility would annually produce 500,000 gigajoules of RNG and 10,000 tonnes of biocarbon through the conversion of 75,000 tonnes of wood wastes and residuals, using two of CHAR’s commercial-scale high temperature pyrolysis kiln systems. The facility is projected to reach initial operations in 2025. The same two-kiln structure is currently in advanced construction stages in Thorold, Ontario.
“With Budget 2023 calling for increased production of Canadian biofuels, this project couldn’t come at a better time,” says CHAR CEO, Andrew White. “We’re proud to be working with our friends at LNFMI to develop this project to replicate our existing Thorold, Ontario, facility. With LNFMI managing our wood residuals and wastes supply chain, we can focus on delivering what we do best, supporting Canada’s green energy transition.”
The RNG produced by the facility will be marketed to natural gas utilities in the Region while the biocarbon is targeted for consumption as a metallurgical coal replacement for Canadian steel manufacturers.
Successful implementation of the facility would generate countless social, economic, and environmental benefits for both the region and Province of Ontario. These benefits would be realized through local, full-time employment opportunities, reducing the dependency on petroleum-based fuels, and increasing the utilization of wood fiber that is conventionally undesirable, unmarketable or a waste product of traditional harvest systems.
Under the terms of the MOU, voting rights in respect of the project entity would be split between LNFMI and CHAR on a 51%:49% basis, with each party being entitled to appoint two directors. CHAR and LNFMI would develop and operate the project collaboratively. Once operational, LNFMI would be responsible for sourcing and managing delivery of the feedstock, and CHAR responsible for sales and marketing of the renewable natural gas and biocarbon that is produced, with each party being paid customary fees for the services they provide to the project during development and operation.
About CHAR Technologies Ltd.
CHAR Technologies Ltd. (TSXV:YES) first-in-kind high temperature pyrolysis (HTP) technology processes unmerchantable wood and organic wastes to simultaneously generate two renewable energy revenue streams, renewable natural gas (RNG) or green hydrogen and a solid biocoal that is a carbon neutral drop-in replacement for metallurgical steel making coal.
CHAR’s HTP is an ideal waste to energy solution that aligns with the global green energy transition by diverting waste from landfills and generating sustainable clean energy to decarbonize heavy industry.
About Lake Nipigon Forest Management Inc.
The organization is responsible for all forest management activities that occur on the ~1,000,000 ha land base. Additionally, LNFMI is a motivated and progressive company that is constantly seeking opportunities for economic development. LNFMI oversees an annual harvest operation of ~500,000m3/year from the Lake Nipigon Forest, which supplies wood fiber to facilities across northern Ontario. Based on current volume projections, LNFMI has ~900,000m3 of excess wood fiber annually, which, when coupled with a local expertise in biomass transportation logistics, supports the development of the proposed Biocarbon and RNG facility. Visit https://lnfmi.ca/lake-nipigon-forest to learn more about LNFMI.
For further information, please contact:
| Andrew White Chief Executive Officer CHAR Technologies Ltd. E: andrew.white@chartechnologies.com T: 866 521-3654 | Mark Korol Chief Financial Officer CHAR Technologies Ltd. E: m.korol@chartechnologies.com |
Website: www.chartechnologies.com
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Forward-Looking Statements
Statements contained in this press release contain “forward-looking information” within the meaning of Canadian securities laws (“forward-looking statements”) about CHAR and its business and operations. The words "may", "would", "will", "intend", "anticipate", "expect" and similar expressions as they relate to CHAR, are intended to identify forward-looking information. Such statements reflect CHAR’s current views and intentions with respect to future events, and current information available to CHAR, and are subject to certain risks, uncertainties and assumptions, including those risk factors discussed or referred to in CHAR’s disclosure documents filed with the securities regulatory authorities in certain provinces of Canada, including the Management Discussion & Analysis dated January 31, 2022 and available under CHAR’s profile on www.sedar.com. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, CHAR does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and CHAR undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
