Northstar signs agreement with Colas Canada’s for liquid asphalt production from Empower Calgary Facility

VANCOUVER — Northstar Clean Technologies Inc., announced that along with its wholly-owned subsidiary Empower Environmental Solutions Calgary Ltd., has executed a definitive offtake agreement with McAsphalt Industries Ltd., a wholly owned subsidiary of Colas Canada Inc., for a five-year take-or-pay agreement whereby Northstar will sell and McAsphalt will buy, on an exclusive basis, 100 per cent of liquid asphalt production from the company’s planned scale-up facility near Calgary, Alberta.

The agreement is subject to two conditions precedent: sufficient funding to build the facility, and appropriate permitting having been received to build and operate the facility.

“It is great progress for Northstar’s business to execute the Offtake Agreement with McAsphalt. We see this as a fundamental step in securing the commercial future of the Empower Calgary Facility with an important partner,” said Aidan Mills, President and CEO and Director of Northstar.

The key commercial terms of the agreement are unchanged from the binding term sheet announced by the company on October 6, 2022, and include:

• Term: Northstar and McAsphalt have agreed to an initial five-year term with automatic three-year renewal options, unless either of the Parties provides 180 days written notice of its intention not to renew.
• Pricing: The agreed terms of the sale price of the liquid asphalt is confidential due to commercial sensitivity reasons, but the pricing is market based and includes the market index, a quality and locational differential, and a sustainability premium.
• Risk Management: Risk management pricing is incorporated into the pricing mechanism and other sharing mechanisms to allow best risk allocation for the benefit of both parties and ultimately the project.
• Third Party Sales: Northstar and McAsphalt will have the ability to enter into third party sales agreements for the liquid asphalt product produced from the Empower Calgary Facility. The detailed terms of any third-party sales are confidential.
• Life-Cycle Assessment: Northstar and McAsphalt will work together to develop a life-cycle assessment for Northstar’s proprietary clean technology.
• Environmental Credits: Northstar and McAsphalt will work together on the development of a protocol to create environmental credits. Should environmental credits be created, the sustainability premium will be calculated based on the joint contribution to the protocol development.

“The Offtake Agreement is an exciting first step for McAsphalt and our Colas family,” said Ronald Vertz, President of McAsphalt. “The agreement has the potential to lower our group’s carbon footprint by up to 15,000 tonnes of CO2equivalent per year, a significant contribution for us in reaching our goal to reduce our carbon footprint 30% by 2030. With Northstar as a partner we believe we can build on this success in the near future.”