Northstar Clean Technologies recently announced that the Calgary-based company has received a non-binding Letter of Interest from Export Development Canada.
EDC may provide financial support, subject to due diligence, to help the Alberta-born Northstar expand into the U.S. market by opening a shingle reprocessing facility for North America’s circular economy.
“While still early days, we are very encouraged by EDC’s interest to potentially provide financial support for our growth aspirations in the United States,” commented Aidan Mills, chief executive officer of Northstar.
The launch of Northstar’s Canadian facility, the Empower Calgary Facility, was supported by the Business Development Bank of Canada, and follows a pilot launch in Delta in 2021.
Moving forward, Northstar has crosshairs on the American market, with EDC as a potential partner.
“The United States represents a significant market for Northstar,” stated Mills, “and we continue to advance site selection—permitting and securing long-term supply agreements—for a number of US locations.”
The Letter of Interest suggests EDC could extend credit up to $12 million for Northstar, a Canadian waste-to-value technology company focused on the sustainable recovery and reprocessing of asphalt shingles.
Northstar has developed a proprietary design process for discarded asphalt shingles, otherwise destined for landfills, to extract liquid asphalt for use in new shingle manufacturing and asphalt roof systems—while also extracting aggregate for use in construction products and other industrial applications.
“These efforts are in line with our existing liquid asphalt off-take arrangements for the first four facilities in the United States,” stated Mills. “Our international growth objectives align seamlessly with EDC’s mandate and we look forward to a long and prosperous partnership.”
Greg Phaneuf, who serves Northstar as vice president of corporate development and chief financial officer, believes that the “LOI from EDC could ultimately lead to a foundational funding vehicle for Northstar’s US capital strategy.”
“Northstar’s business model lends itself to prudent leverage to materially reduce our project cost of capital, thereby enhancing returns for our shareholders,” he remarked. “We look forward to working with EDC to crystallize funding terms as part of our larger growth capital initiatives.”
Northstar trades on the TSX Venture Exchange under the ticker ROOF.
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