Cielo Waste Solutions (CMC) Status Update summary

Project overview and strategy

• Focused on developing waste-to-fuel projects using proven third-party technologies, with a technology-neutral approach to match feedstock and regulatory needs.

• Project Nexus is centered in Prince George, B.C., leveraging the region's industrial hub status, skilled labor, and abundant feedstock opportunities.

• The project aligns with CleanBC objectives and seeks major project status under B.C. Bill 15, with strong policy support at both provincial and federal levels.

• Sustainable aviation fuel (SAF) is the primary output, chosen for its strong economics and policy tailwinds in the LCFS credit environment.

Feedstock and technology

• A foundational feedstock MOU is in place for a 10-year supply, with additional agreements to supplement as needed.

• The technology selection process targets commercially proven solutions with high technology readiness (TRL 8-9), minimizing technological risk.

• The facility will primarily use biogenic biomass, with flexibility to process other feedstocks like municipal waste if biogenic content is sufficient.

• Gasification is the consistent front-end process, with the back-end tailored to SAF production; side streams like naphtha may be produced.

Financing and economics

• Project financing leverages non-dilutive sources, including the Clean Fuels Fund, LCFS credit minting (up to half the project), and Canada Infrastructure Bank.

• Pre-FEED and FEED work are largely covered by grants, reducing the need for equity capital.

• Additional federal and provincial programs are being pursued, with a $5 million Clean Fuels Fund grant application pending.

• BC Hydro's renewable power supports low carbon intensity scores, enhancing project economics.