CHAR Technologies (YES) Planet MicroCap Showcase: TORONTO 2025 summary

Technology and market approach

• Commercializes high-temperature pyrolysis to convert woody biomass into renewable natural gas and biocarbon, with the first facility in Thorold, Ontario.

• Biocarbon serves as a metallurgical coal replacement, while renewable natural gas is sold under long-term, inflation-indexed contracts at a significant premium to conventional gas.

• Market drivers include green steel demand in Europe and renewable gas mandates in Canada, supporting premium pricing and rapid project deployment.

• Strategic partners include ArcelorMittal (biocoal offtake), BMI Group (project investment and facility access), and Lake Nipigon Forest Management (feedstock and project partner).

• Modular plant design allows scaling based on biomass availability, with projects in Thorold, Lake Nipigon, Saint-Félicien, Espanola, and Baltimore.

Project development and economics

• Thorold project targets CAD 28 million annual revenue at full scale, with phase two renewable natural gas production set for 2026.

• Lake Nipigon project leverages abundant biomass, with a four-kiln system ramping up production and revenue over several years.

• Project financing combines non-dilutive government grants, equity, and non-recourse project debt, minimizing the need for large corporate-level financings.

• Greenfield projects like Nipigon require about CAD 55 million in CapEx, with expected pre-tax IRRs in the high 20s to low 30s percent range, factoring in paid feedstock.

• Gas offtake is facilitated by proximity to pipelines or virtual injection stations, ensuring market access.

Licensing and biosolids market

• Partnership with Synagro targets destruction of PFAS in biosolids using pyrolysis, converting waste into marketable biochar.

• Six-month demonstration in Baltimore aims to validate PFAS destruction, with third-party lab testing scheduled.

• Licensing model for biosolids projects includes recurring license and engineering fees, with equipment costs around CAD 10 million per site.

• Synagro operates 15-16 directly applicable dryer facilities, with urgent demand due to regulatory and legal pressures.

• Additional value is created by offsetting natural gas use and potentially capturing environmental credits, depending on jurisdiction.