Winnipeg, MB, March 4, 2024 — EnerPure Inc. (“EnerPure” or the “Company”), a Manitoba cleantech company, is pleased to announce a revision to our project economics for our Alberta Recycling Plant incorporating EnerPure’s proprietary technology as a result of the ongoing detailed engineering work being completed by our consultants and our project development team.
Revised Alberta Recycling Plant Economics
Our previous project economics estimates were based on an 88% conversion efficiency and yielded an IRR of 45% and a payback of less than three years. The development team’s approach to incorporating the knowledge and expertise gained from building and operating our full-scale pilot plant into the detailed engineering effort has delivered a conversion efficiency increase from the previous 88% to 92%, while maintaining a compact repeatable modular design.
Current Project Economics
| In USD | Prior Economics (based on 87.5% conversion) | Economics with 92% conversion |
| IRR | 45% | 49% |
| EBITDA ($ millions) | $5.1 | $5.8 |
| Revenues ($millions) | $14.9 | $15.7 |
| CAPEX | $14.0 | $14.5 |
| Payback Period | 2.8 years | 2.5 years |
The slight increase in capital expenditure reflects equipment selections made in the achievement of the higher conversion efficiency and is reflective of EnerPure’s practice of working with our technical consultants to continually update the capital estimate in step with the progress of the engineering work.
The completion of our recent C$7.4 million raise in November 2023 has enabled us to advance our engineering work for our Alberta project and future projects incorporating EnerPure’s plant design. We expect the engineering work may also result in optimization of our production mix including our 8-14%1 lower carbon intensive marine fuel, which has the potential to further improve our project economics.
This improved efficiency should also lead to further reductions in greenhouse gas emissions throughout the full life cycle of the UMO recycling and fuel use. EnerPure has engaged a third-party firm to update this lifecycle analysis.
Todd Habicht, CEO and Founder commented: “I am delighted by the progress being made by our development team working in conjunction with our engineering consultants. Internally, having had the experience of designing, building, and operating our Manitoba Pilot Plant and to then be able to augment this experience with the extensive engineering and industry experience of our external consultants is proving invaluable in identifying opportunities to build upon the already robust economics of our recycling plants.”
About the Company:
“We recycle Used Motor Oil (UMO) to reduce GHG while producing a lower carbon-intensive marine fuel.”
Globally over 28 billion litres of UMO2 are generated each year with approximately 80% of global waste oil being either burnt or dumped. EnerPure has developed a patented process and technology that solves this problem. Based on proven technology, but deployed on a scale not seen before, our micro-scale recycling plants can solve this problem due to its small footprint and low capital requirements.
Our technology has been proven via our full-scale pilot & demonstration plant and is now ready for deployment to start building a truly sustainable energy system within our generation, while preserving the global economy. Our marine fuel product is already in high demand due to meeting the exacting standards of the ISO 8217:2017 marine fuel standard while delivering a carbon intensity that is 8-14% lower than marine fuel produced from crude oil.
1Based on third party reports which estimate an 8-14% lower carbon intensity versus comparable marine fuels. 2UMO is defined as any petroleum-based or synthetic lubricating oil that cannot be used for its original purpose due to contamination.
Disclosure and Caution
This press release may contain certain disclosures that may constitute “forward-looking statements” within the meaning of Canadian securities legislation. In making the forward-looking statements, the Company has applied certain factors and assumptions that the Company believes are reasonable. However, the forward-looking statements are subject to numerous risks, uncertainties and other factors, including but not limited to economic and engineering projects, that may cause future results to differ materially from those expressed or implied in such forward-looking statements. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
The securities referred to in this news release have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.
