The companies are now working towards entering into a joint venture agreement that will provide the framework to build and operate a joint venture refinery that converts garbage into high grade renewable fuels utilizing Cielo’s proprietary technology (JV Refinery).
Under the terms of the agreement, Cielo will manage the JV Refinery, overseeing its planning, construction, commissioning and operation.
It will also receive a management fee for the construction of the JV Refinery equal to 7% of the JV Costs subject to certain exclusions, and will continue to receive management fees once operations begin based on industry standards.
Meanwhile, commissioning of Cielo's first waste to high grade renewable diesel refinery in Aldersyde, Alberta is now nearing completion.
The tipping point for a number of our backers was seeing the Aldersyde Refinery, up and running, converting waste into high grade renewable diesel at the Grand Opening...Having four Renewable U refineries being permitted and built concurrently will lower our overall costs and accelerate the timelines to have these refineries operational,
...said Lionel Robins, CEO of Renewable U LA.