Canadian Premium Sand Inc. reports results from its FEED study
by CM Staff
The findings included a positive outlook for the long-term price of patterned solar glass in North America, further validating the Company’s business model.
CALGARY — Canadian Premium Sand Inc. reports the results from its Front End Engineering and Design (FEED) study and the receipt of a market report confirming the economic viability of manufacturing patterned solar glass at a site identified in Selkirk, Manitoba.
“These studies support our decision to build North America’s only patterned solar glass manufacturing facility,” stated Company President, Glenn Leroux. “The business strategy of integrating our high-quality solar spec sand, Manitoba’s inexpensive renewable hydroelectricity, and proximity to our North American customer base through the Winnipeg logistics hub, is a highly attractive business plan that others cannot easily replicate.”
Since the Company’s announcement of its intention to develop North America’s only patterned solar glass manufacturing facility, CPS has received strong levels of industry support for the project. The Company has commenced commercial discussions with the majority of solar panel manufacturers that have existing North American capacity, as well as a number of global manufacturing entities that are planning to establish a North American presence. To date, the Company has secured Expressions of Interest for the purchase of solar glass in excess of the first phase of planned facility output.
The FEED study focused on the design, capital needs and operating costs of a patterned solar glass manufacturing facility in Selkirk, Manitoba and a sand extraction facility located at the Company’s wholly owned and permitted Wanipigow Sand Quarry, approximately 150 kms to the North.
Taking the FEED study and market report into consideration, the Company is advancing plans to develop its integrated solar glass manufacturing project in multiple largescale phases. Highlights of the first phase of the project include:
- 550 to 600 tonnes per day patterned solar glass manufacturing and coating facility
- Multiple production lines that accommodate tempered glass specifications ranging in thickness between 4.0mm and 1.8mm and the application of advanced anti-reflective and anti-soiling coatings
- Capable of supplying up to 4 GW of annual solar panel manufacturing
- $400 to $500 million Class 4 capital cost estimate, which provides an 80% certainty level and includes costs for both solar glass manufacturing and sand extraction facilities
- Includes capital for land and certain common operating infrastructure that will enable CPS to efficiently add future production capacity to accommodate the anticipated growth in solar glass demand
- Approximately $200 million of annual EBITDA based on full production capacity and current solar glass prices of approximately US$12/sq. m.
- CPS expects to be a low cost provider of patterned solar glass to the North American market due to the use of low-cost renewable hydroelectric energy, proximity to customers and the integration of CPS’s wholly owned silica sand supply
- Taking the current capital cost estimate into consideration and other factors this EBITDA estimate supports an unlevered before-tax NPV10 of approximately $800 million and internal rate of return (IRR) of approximately 25%
