Every year, more than 13.5Mt of asphalt shingles are being dumped into U.S. and Canadian landfills, according to Northstar Clean Technologies (TSXV: ROOF) (OTCQB: ROOOF). That can lead to a significant environmental issue. In fact, according to Cornett Roofing Systems, “Industry experts estimate that asphalt shingles take between 300-400 years to fully decompose. Shingles are dense and take up a lot of room, resulted in loss of space for other types of waste. They also can leech chemicals into ground water supplies that can be carcinogenic.” Fortunately, that’s where companies, like Northstar Clean Technologies may be able to help. The company’s clean technology solution is expected to have a significant impact on the environment by reducing landfill usage, reducing the CO2 impact of asphalt, fiber and aggregate production, and contributing to the “circular economy.” Other companies to keep an eye on include Owens Corning (NYSE: OC), Builders FirstSource Inc. (NYSE: BLDR), Lowe’s Companies Inc. (NYSE: LOW), and Home Depot Inc. (NYSE: HD).
Look at Northstar Clean Technologies Inc. (TSXV: ROOF) (OTCQB: ROOOF) For Example
Northstar Clean Technologies Inc. announced the Company, along with its wholly-owned subsidiary Empower Environmental Solutions Calgary Ltd., has signed a binding term sheet for a five-year off-take agreement with McAsphalt Industries Ltd., a wholly owned subsidiary of Colas Canada Inc., whereby Northstar will sell and McAsphalt will buy, on an exclusive basis, 100% of liquid asphalt production at the Company’s planned scale-up asphalt shingle reprocessing facility in Calgary, Alberta. The Term Sheet is a legally binding obligation between the Parties.
- Term: Northstar and McAsphalt have agreed to a five-year term for the off-take agreement 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.
- 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.
- Planning, Regulatory and Government Agency Support: McAsphalt will support Northstar in planning, regulatory and government agency engagement with respect to the Empower Calgary Facility.
- Life-Cycle Assessment: The Parties will work together to develop an additional life-cycle assessment for Northstar’s proprietary clean technology.
- Carbon Credits: The Parties will work together on the development of a protocol to create carbon credits. Should carbon credits be created, the sustainability premium will be calculated based on the joint contribution to the protocol development.
The precise terms of the five-year off-take agreement with McAsphalt will be incorporated into a definitive agreement to be negotiated between the Parties.
Mr. Aidan Mills, President & CEO and Director of Northstar, stated, “This Term Sheet is a pivotal agreement and a major milestone for Northstar. With McAsphalt we have a valuable off-take partner that has the strength, capability, resources and operational expertise to help move our business forward. Furthermore, the research and development support we have received from McAsphalt to date has been outstanding. McAsphalt has contributed to the continued optimization of the production and quality control processes at Northstar’s Empower Pilot Facility in Delta, B.C., and to the design of the Empower Calgary Facility. With McAsphalt’s commitment to continue its support, through detailed design, construction, commissioning, and operation of the Empower Calgary Facility, we have a sophisticated partner who will contribute significantly to the success of our commercialization of an industry changing technology.”
Mr. Mills continued, “Furthermore, Colas Canada’s leading carbon reduction and ESG targets are aligned with Northstar’s business model, and we expect to work together to provide an integrated low carbon solution that capitalizes on the benefits of Northstar’s low carbon footprint and McAsphalt and Colas Canada’s product portfolio. We see McAsphalt’s commitment to market-based pricing as a testament to our business model and its recognition of the sustainability premium for our products. The Term Sheet is critical as we continue negotiations on long term off-take agreements for the lowest carbon footprint asphalt in North America, and we expect upside for both organizations as we work together to develop a carbon monetization strategy for Northstar’s low carbon asphalt. For the Empower Calgary Facility, this agreement provides Northstar the ability to divert an estimated 40,000 tonnes of shingles per year from Calgary landfills (60,000 barrels of asphalt per year into landfill) and deliver an estimated 10,000 tonnes of asphalt per year. McAsphalt is a serious long-term strategic partner, and we are delighted to have them as a critical partner in our first commercial facility.”
Ron Vertz, Canadian President of McAsphalt, stated, “We at McAsphalt were very excited the moment we were contacted by Northstar and feel fortunate that we were given the opportunity to work with them on an offtake agreement. As a leader in asphalt technology in Canada we often get calls to look at innovative ideas with most with no commercial application. Everyone is trying to find a way to reduce their carbon footprint, too many companies are looking at carbon offsets and not really addressing the root cause in their own company. Northstar is different, they have a proprietary process that has commercial application and they are addressing the carbon problem, not just green washing.”
Mr. Vertz continued “McAsphalt has been working on a low carbon asphalt for the construction industry for several years. McAsphalt is a Colas company in Canada and with Colas Canada Inc.’s network of operating subsidiaries specializing in road building and maintenance, is one of the largest roadbuilding companies in Canada. If McAsphalt can help reduce the carbon footprint of asphalt cement, that will translate into a lower carbon footprint in the paving operations at all Colas Companies in Canada. We believed we had an innovative low carbon asphalt before we met Northstar, but what we have found that by incorporating their asphalt into our formulations, we can achieve an even lower CO2 emission from our operations”.
For Mr. Vertz, “Northstar has been a great partner. They have been very receptive to all ideas presented. Northstar will be an important partner helping us meet our corporate CSR commitments, specifically, carbon reduction, reducing our impact, circular economy and helping us shape an exemplary culture of ethics and compliance.”
Other related developments from around the markets include:
Owens Corning reported second-quarter 2022 results. “Owens Corning delivered another outstanding quarter while advancing our enterprise strategy which accelerates our growth, strengthens our earnings power, and creates additional value for our shareholders. Our global teams continue to execute at a high level as we make strategic investments to expand our total addressable markets and enhance our market-leading positions,” said Chair and Chief Executive Officer Brian Chambers. “For the second half of the year, we remain focused on delivering strong financial results and positioning the company for long-term success.”
Builders FirstSource Inc. reported its results for the second quarter ended June 30, 2022. “During the second quarter, we remained focused on executing our strategy, accelerating value-added product sales and expanding customer solutions, resulting in another quarter of record revenue and EBITDA performance despite the dynamic environment and challenging year-over-year comparisons,” commented Dave Flitman, President and CEO of Builders FirstSource. “We increased sales by 24%, including nearly 32% organic growth in our higher margin value-added products, and increased Adjusted EBITDA by 80%. These outstanding achievements are a direct result of having strong alignment around a clear execution roadmap, the hard work and dedication of our approximately 30,000 team members and their commitment to provide outstanding service to our customers."
Lowe’s Companies announced it will donate $2 million to support relief efforts in Florida after Hurricane Ian left devastation across the state, causing catastrophic flooding and damage. Lowe's donation will support disaster relief partners and nonprofit Pro customers, helping organizations provide emergency shelter, food and rebuilding supplies to those affected by the storm. Lowe's also will host relief events to distribute critical supplies.
Home Depot Inc. reported sales of $43.8 billion for the second quarter of fiscal 2022, an increase of $2.7 billion, or 6.5 percent from the second quarter of fiscal 2021. Comparable sales for the second quarter of fiscal 2022 increased 5.8 percent, and comparable sales in the U.S. increased 5.4 percent. "In the second quarter, we delivered the highest quarterly sales and earnings in our company's history," said Ted Decker, CEO and president. "Our performance reflects continued strength in demand for home improvement projects. Our team has done a fantastic job serving our customers, while continuing to navigate a challenging and dynamic environment. I would like to thank them and our many partners for their hard work and dedication to our customers."
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Northstar Clean Technologies Inc. by Northstar Clean Technologies Inc. We own ZERO shares of Northstar Clean Technologies Inc. Please click here for full disclaimer.