Cielo pre-sells 60,000 liters of renewable diesel from Aldersyde facility

November 24, 2020 |

In Canada, Cielo Waste Solutions Corp. has received pre-payment in full for 60,000 liters of renewable diesel, which is now being produced at the Company’s Aldersyde waste to renewable fuel facility. The renewable diesel will be shipped to a third party of the purchaser’s choice once Cielo reduces the sulfur content of its renewable fuel down to less than 15 PPM sulfur. 

Cielo has sold small quantities of renewable diesel in the past, however this sale marks the first commercial pre-sale of 60,000 liters. Cielo received C$1.25/liter from the purchaser, which is much higher than the cost to produce the renewable diesel, including the pending projected costs to lower the sulfur content to meet the diesel industry’s spec. Management believes this premium price per liter confirms the purchaser’s confidence in Cielo. The purchaser will be able to resell the renewable diesel they pre-purchased, at a significantly higher price, early in the new year once the desulfurization equipment is installed and commissioned at the Aldersyde Facility. It is the purchaser’s intent to have Cielo remove the sulfur from the renewable diesel and then allow Cielo to sell it as an ultralow sulfur diesel and the purchaser will receive the upside of the higher margin when sold. 

Category: Fuels

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