Ecolomondo releases interim financial statement and pyrolysis project update
Ecolomondo Corporation (TSX-V: ECM) (the “Company” or “Ecolomondo”) releases its unaudited interim consolidated financial statements and notes hereto and its related management discussion & analysis (“MD&A”) for the interim period ended September 30, 2020 (the “Interim Financial Statements”).
Ecolomondo says that during the period, it made considerable progress on the construction of its new Hawkesbury Thermal Decomposition (“TDP”) turnkey facility. Management estimates that construction of the building that will house the plant is about 90% complete and expects completion by the end of 2020. Installation of the plant equipment began in late August of 2020 and is proceeding according to schedule while commissioning is now scheduled to begin in the first quarter of 2021.
As of September 30, 2020, capital expenditures for the Hawkesbury facility totalled $19,965,404 and were essentially for site purchase, engineering, site preparation, building construction, labor, permitting, equipment purchases and installation. Management believes that the project will be completed on budget and expects to begin commercial operations by the end of April of 2021.
During the quarter ended September 30, 2020, the Company continued to ready its Pilot plant, located in Contrecoeur, Quebec, Canada, a 2-reactor industrial-size TDP facility, to operate as the training center to train future operators needed for the thermal processing department at its new TDP turnkey facility in Hawkesbury.
The Company continued to market all of its end-products and to secure offtake agreements for them, especially its recovered carbon black, known as “Mondo Black”. The Company was also quite active in marketing TDP turnkey facilities, in Canada, USA and Europe.
It also continued to improve its technology platform and make important progress in the areas of process optimization, efficiency, safety and end-product quality. 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, 1,600 tons of process gas and 850 tons of fiber.
During this period, the Company worked aggressively to complete the construction of its new Hawkesbury TDP turnkey facility. Once completed, this facility will be a first of its kind and be used as a technological showpiece to promote the sale of TDP turnkey facilities globally. Management believes that once the Hawkesbury facility comes online, it is expected to be a testimonial of the commercial viability of TDP turnkey facilities and, as a result, it is expected to promote the sale of other TDP turnkey facilities.
Impact of the COVID-19 Pandemic
The world economy is still impacted by the crisis created by the COVID-19 (coronavirus) pandemic. The COVID-19 pandemic has resulted in the confinement of the population of Canada and many countries around the world.
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. The Company has experienced some delays in lead times for certain parts, and some work slowdown by subcontractors due to labor shortages. 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.
Press release by Ecolomondo.