Northstar and Ecco Recycling announce three-year asphalt shingle deal for Calgary facility

VANCOUVER and CALGARY — Northstar Clean Technologies Inc., a Canadian clean technology company focused on the sustainable recovery and reprocessing of asphalt shingles, and Ecco Recycling & Energy Corporation, a Calgary-based waste diversion provider, announce that Ecco Recycling and Northstar, through its wholly-owned subsidiary Empower Environmental Solutions Calgary Ltd. have signed a binding three-year asphalt shingle supply agreement for Northstar’s planned asphalt shingle reprocessing facility in Calgary, Alberta.

Under the terms of the Supply Agreement, Ecco Recycling will supply asphalt shingles from its current construction & demolition landfill in Calgary to Northstar’s Empower Calgary Facility. The shingles will be reprocessed at Northstar’s Empower Calgary Facility for an initial term of three years with mutual extension options.

In addition, the Parties are expected to carry out a landfill supply study to investigate the potential for Ecco Recycling to supply additional shingles from its landfill in Calgary. Ecco Recycling’s C&D landfill currently has a resource of over 500,000 tonnes of asphalt shingles and Ecco Recycling is working with the City of Calgary and the Province of Alberta to develop a solution for the removal and repurposing of the C&D material currently deposited at its landfill.

Access to this resource, subject to detailed ongoing testing and rigorous specifications, has the potential to enable the Empower Calgary Facility to significantly increase processing throughput.

The Supply Agreement outlines the following:

Pre-Commissioning Shingle Volume – Monthly supply of up to 1,000 tonnes per month to be delivered by Ecco Recycling to the Empower Calgary Facility from April 1, 2024 to March 31, 2025;

Post-Commissioning Shingle Volume – Ongoing monthly supply of up to 20,000 tonnes per year to be delivered by Ecco Recycling to the Empower Calgary Facility, commencing April 1, 2025;

Tipping Fees – Tipping fees are expected to be transacted throughout the term of the agreement;

Term – Ecco Recycling will deliver shingles to the Empower Calgary Facility for an initial three-year term which shall be renewed automatically for succeeding terms of three years each unless either Party gives written notice to the other not to renew. The term begins on April 16, 2024;

Specification – All shingles delivered by Ecco Recycling to the Empower Calgary Facility will be delivered without any contaminants.

The landfill supply study, which has been agreed via a non-binding term sheet, will be carried out through 2024 and 2025 with the potential, if successful, for incorporation into the Supply Agreement from 2026 onward.

Mr. Don Francis, President & COO of Ecco Recycling, stated, “We are excited to support Northstar on its plans for diverting asphalt shingle waste away from Calgary landfills. This is a great opportunity for our company as well, and we are excited to support Northstar’s landfill diversion efforts. We believe in Northstar’s long-term vision and we are happy to support circularity for the benefit of the environment.”