June 29, 2022

Independent Report Confirms Northstar Clean Technologies Green Liquid Asphalt Production Process

VANCOUVER, BC, November 12, 2021 /PRNewswire/ – Northstar Clean Technologies (TSXV: ROOF) is a clean technology company focused on recovery and recovery of single-use asphalt shingles to produce liquid asphalt, fiber and sand while diverting waste shingles from landfills.

The company has a factory built entirely in Delta, BC in the commercialization phase with production at a steady state expected in early 2022.

At November 9, 2021, Northstar announced the the results of the independent carbon footprint assessment (ACV), completed by Burgess Environmental Ltd who conclude that Northstar’s liquid asphalt production will produce 60% less carbon emissions compared to sending the shingles to a landfill and producing virgin asphalt.

The 2017 British Columbia Best Practices Methodology for Quantification of greenhouse gas emissions was used to calculate emissions associated with fuel and electricity consumption.‍

Asphalt produced by the Northstar process is a green, renewable circular asphalt with the lowest carbon intensity of all asphalts in North America.

Key takeaways from LCA:

  • Confirms that ROOF’s Empower installation is a renewable “circular” industrial solution with reduced carbon dioxide emissions
  • Net estimate reduction in greenhouse gas (GHG) emissions of 121.94 kg of carbon dioxide equivalent per tonne of raw material, diverting shingles from landfills and replacing the Empower facility’s virgin asphalt production.
  • Net estimate savings in carbon dioxide emissions in the range of 1,500,000 kg to 3,000,000 kg of carbon dioxide equivalent per year depends on steady state production volume

12 million tons of asphalt shingles are sent to landfill annually in United States, equivalent to more 18M barrels of oil or a day of US oil production dumped in landfills each year.

Diverting an oily mountain of old shingles from landfills is a promising business plan, but some “green businesses” are getting dirty downstream.

“In 2019, the New York Times published an article about old toxic solar panels and batteries causing harm to people who hand-scavenge recyclable materials in poor African communities,” reports Forbes magazine.

The independent LCA report just got Northstar over that hurdle.

‍Northstar Bitumen Extraction and Separation Technology (BEST) uses a proprietary process to separate liquid asphalt, fibers and aggregate sands from scrap or defective asphalt shingles destined for landfill.

“The demand for asphalt binder in North America is currently the highest for highways and rooftops,” says a October 2021 Liquid Asphalt Research Report prepared by Kin Communications, “The shingles made from asphalt have a purpose which is to be used for the roofing of structures.”

“Because these shingles are petroleum-based, they are not environmentally friendly and their production wastes energy in addition to aggravating greenhouse gas emissions,” the research report continues.

“LCA analysis quantifies how our operations can help our customers and industry partners deliver circular and ‘green’ renewable asphalt produced with significantly lower carbon intensity,” said Aidan Mills, CEO of Northstar.

Empower Facility Carbon Dioxide Emissions:

  • 77.21 kg of carbon dioxide equivalent produced by 1 ton of raw material

Virgin production and landfill disposal Carbon dioxide emissions:

  • 44.09 kg of carbon dioxide equivalent produced from 1 ton of raw material sent to landfills.
  • 155.06 kg of carbon dioxide equivalent produced from 1 ton of virgin asphalt, including transport to the Vancouver market(1)
  • A combined total of 199.15 kg of carbon dioxide equivalent per 1 ton of raw material

Net savings:

  • 121.94 kg of carbon dioxide equivalent for 1 ton of raw material

“The global context of reduce the carbon footprint of industry compels companies to identify other renewable paths,” continued Mills, “With the low carbon footprint solution for asphalt shingle reuse, we believe we can support our customers and industry partners in their journey towards sustainability.”

In addition to the net carbon dioxide savings, the LCA report calculates that the Empower installation will: 1. Reduce water consumption by 650 liters per tonne of asphalt processed 2. Reduce soil disturbance by 0.44 m2 per tonne treated asphalt.

“Depending on the regulatory and legislative framework, the carbon dioxide benefits may enable Northstar to potentially generate future revenue and margins from carbon credit sales“, said ROOF.

In British Columbia, carbon credits are valued at approximately $50/tonne.

“A carbon credit is a kind of permit that represents 1 ton of carbon dioxide removed from the atmosphere”, explains NBC News, “They can be purchased by an individual or, more commonly, a company to offset carbon dioxide emissions from industrial production.”

ROOF’s business model provides for four revenue streams: 1. tipping fees (paid by waste haulers and roofers), 2. sale of asphalt, 3. sale of fiber and 4. sale of aggregates.

Selling carbon credits would add 5and income stream.

For ROOF shareholders, the most important ripple effect of the life cycle analysis report, is probably not the value of carbon credits – but the confirmed value eligibility of ROOF technology for government funding.

The ROOF installation is modular and can be duplicated in other locations. As the company expands its operations, governments can be valuable partners, reducing the need for dilutive financing.

At July 27, 2021 Northstar announced that they have engaged Public Affairs Wellington Dupont lead the government’s commitment to reducing the disposal of single-use asphalt shingles in landfills across Canada.

Wellington support federal, provincial and municipal engagement in the execution of Northstar expansion plans through North America, in addition to evaluating various potential non-dilutive financing strategies, including government grants, to support expansion plans,” Northstar said.

“The retail price of bituminous cement per ton in August 2021 is CAD $891.00, according to the Ontario Asphalt Pavement Council. This represents a 44% increase since the start of the year,” reports the Kin Communication Report.

“We now know that our production process can make a significant difference to our climate by reducing carbon dioxide emissions both in the degradation of asphalt shingle tiles in landfills and in the production of virgin asphalt” , Mills said following the release of the independent Life-Cycle Assessment (LCA) carbon footprint.

“The first step on the path to carbon neutrality is to accurately quantify company emissions and LCA quantifies exactly that,” Mills concluded.

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SOURCE Global Equity News