Winnipeg, MB, August 27, 2024 – EnerPure Inc. (“EnerPure” or the “Company”), a recycling and energy transition company, is delighted to report on its progress towards deploying our first full-scale UMO (Used Motor Oil) recycling plant as we march towards achieving our goal of deploying 21 recycling plants in the next six years. We have now incorporated our product optimization work and latest engineering into our economic model and are pleased to report an increase in IRR from 49% to 51%.
During the first six months of 2024, the Company finalized its energy efficient Process Design and accompanying Process Flow Diagrams (PFDs), where it was determined that 28% of the marine fuel production could be an LSMGO (low sulphur marine gasoil) compliant product and the remainder (72%) would be VLSFO (very low sulphur fuel oil). It is worth noting that LSMGO sells at a premium to VLSFO and both EnerPure’s LSMGO and VLSFO products have a < 1,000 ppm sulphur content, well below required industry standards. The Recycling Plant continues to boast an industry-leading 92% conversion rate from UMO to marine fuel and a 95% saleable product conversion rate when including by-products.
Todd Habicht, CEO and Founder commented: “The completion of our product optimization work and the successful production of recycled LSMGO further enhance both our environmental credentials and financial returns. Leveraging the experience from our pilot plant, our engineering team, in collaboration with Ascent Engineering, has finalized the process flow diagrams. The robust economics of our Alberta Recycling Plant underscore our capability to deploy 21 recycling plants over the next six years, aiming to eliminate half a million tonnes of GHG emissions.”
Through its work, the Company was able to update a number of assumptions underlying its Alberta recycling plant financial projections. The updated economics include adjustments made following the conclusion of the Company’s validation efforts wherein 1.6m litres of Used Motor Oil (UMO) were processed at its pilot plant, and through the advancement of the engineering work led by the experienced firm of Ascent Engineering Inc. (“Ascent”). The current project economics are summarized below:
| In US dollars | Previous Economics | Updated Economics |
| IRR | 49% | 51% |
| EBITDA ($ millions) | $5.8 | $6.3 |
| Revenues ($ millions) | $15.7 | $15.6 |
| CAPEX ($ millions) | $14.5 | $14.9 |
| Payback Period | 2.5 years | 2.4 years |
| Conversion | 92% | 92% |
| Annual UMO Litres Processed | 30m | 31.5m |
The finalization of the process design and PFDs will enable the Company to update its carbon intensity and GHG reduction calculations. Life Cycle Associates has been engaged to complete this update and expects to be able to report on this shortly. The Company wants to ensure that its Recycling Plant(s) are robust in their design and operating capabilities and that they provide long-term robust economic returns. For this reason, the Company does not account for any GHG credits or recycling fees in its economics.
A low capital cost of $14.9m USD per facility enables EnerPure to bring its UMO recycling solution to regions that otherwise would not be able to effectively or economically implement UMO recycling, delivering significant economic and environmental benefits to these areas.
About Ascent Engineering Inc. – www.ascentengineering.com
Headquartered in Houston, Texas with offices throughout the US, Ascent is one of the premium engineering firms in the refining and chemical industry space. Ascent specializes in the design, modification, debottlenecking, and scale-up of petroleum refineries, renewables technology, and chemical processing facilities. They provide a holistic review of processing plants with the assurance of a successful completion. Ascent has a well-established history of expertise in refinery retrofits and is also well-poised to help new processes make the transition from the laboratory to commercialization. Established over 24 years ago and with two dozen of the best chemical engineers in the business with hundreds of years of combined experience in up-front process identification, definition, and design.
About Life Cycle Associates. – www.lifecycleassociates.com
Based in California, Life Cycle Associates analyzes the energy and environmental impacts of fuels and energy systems by working with their clients around the world to further the reduction of harmful emissions and negative impacts on the environment and climate. With over seventy years of cumulative experience in alternative fuels, fuel production processes, delivery logistics, fuel certification, and environmental impacts they have worked with a broad range of fuels and processes, and have extensive expertise in model development. They have modified the CA GREET model, supported the development of the initial pathway documents used for the LCFS, and supported many fuel pathways under the LCFS, EPA RFS2, and EU Renewable Directive. They have also helped clients develop strategies for government grants with their clients winning $80 million in funding from the Department of Energy and other agencies.
About EnerPure
“We recycle Used Motor Oil (UMO) to reduce GHG emissions while producing a lower carbon-intensive marine fuel.”
With an estimated 17 billion litres of UMO1 burnt or dumped (~70% of total UMO) around the world each year, the improper disposal of UMO is a growing environmental and societal problem. EnerPure sees a tremendous opportunity to solve this problem through the deployment of its micro-scale recycling plants using its patented technology to convert UMO into high-quality marine fuel.
Our micro-scale recycling plants have a significantly lower capex (US$14.9 million, approximately 5% of traditional solutions) which provides localized solutions for the recycling of UMO while significantly reducing the cost of collection.
Our technology has been proven via our pilot plant with 1.6 million litres processed and validated through fuel sales of over 1.2 million litres. Our marine fuel is in high demand in this growing market due to meeting and exceeding the exacting requirements of the ISO 8217:2017 marine fuel standard while delivering an 8-14% lower carbon intensity.
With EnerPure’s solution, environmental need meets strong economic returns to enable regional recycling of the disseminated UMO problem; we believe that recycling will fuel the energy transition.
1UMO 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, capital expenditures and engineering projections, 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.
