Firm proposing ‘renewable diesel’ plant in SE Alberta adds Peter MacKay to board

By COLLIN GALLANT on April 13, 2021.

cgallant@medicinehatnews.com@CollinGallant

A company that’s working to build a “renewable diesel” facility near Medicine Hat has added former federal cabinet minister Peter MacKay to its board.

The move, announced by Cielo Waste Solutions on Monday morning, is the latest in a number of corporate announcements this winter from the Calgary-based company that has a prototype refinery in Aldersyde, Alta., near High River.

It markets its process as able to produce biodiesel from organic materials, like municipal trash, used tires, ag byproducts and even railway ties, and sells franchise areas to investor groups, including Renewable U, which is advancing a facility in Dunmore.

MacKay is a former leader of the Progressive Conservative Party of Canada and a candidate to win the 2020 Conservative Party of Canada leadership. He served as minister of justice and foreign affairs.

“(Cielo is) truly providing an incredible made-in-Canada remedy for two of the world’s biggest challenges, how to address excess waste and pollution while at the same time providing clean energy,” he was quoted as saying in the company’s release.

Cielo is also seeking to be listed on the TSX Venture exchange. Last month, the group announced that former executives with joint-venture partner Renewable U executives would join Cielo. Former RU lead Lionel Robbins became Cielo’s chief operating officer, and Raphael Bohlmann as marketing vice-president.

Separately RU general manager, Medicine Hat’s Ryan Jackson, was elevated to chief executive officer, while local businessman and former city energy division official Murray Trollope becomes chief financial officer.

Jackson told the News on Monday the local refinery, which would be the first built, is still working on a process to approve the new industrial facility, but the effort is moving long.

“We’re on the final approach for (land conditions) and proceeded with the engineering work,” he said.

“We’re definitely on schedule to start pushing dirt sometime in 2021, with a goal of having a commissioning date in the first quarter of 2023.”

The refineries, estimated to cost $50 million each, would be operated by Cielo, and profits shared on a sliding scale with investors until initial capital expenses were recovered.

In March 2020, Renewable U Medicine Hat announced it had an initial agreement for land east of Dunmore near the weigh scales between the Trans-Canada Highway and Canadian Pacific mainline.

The facility would have a stated capacity to produce 83 million litres of diesel fuel per year from 163,000 tonnes of waste, such as hard-to-recycle types of plastic, and employ up to 40 full-time workers following 300 jobs during construction.

Robbins and Bohlmann were key in initial agreements that saw the initially Grande Prairie-based groups acquire territory rights from Cielo in Grande Prairie, Medicine Hat, Lethbridge and a facility in Calgary and Halifax.

In early March, Cielo announced it had rights agreements in place with Renewable U to build refineries in Winnipeg, Kamloops, a yet-to-be-determined location in the United States and, most recently, Toronto.

Cielo announced in March it had acquired land in Edmonton to build its own refinery.

Cielo also announced on April 2 it was set to receive a $500,000 grant from Alberta Innovates to advance using decommissioned rail ties as a feedstock for its diesel. The company has a supply agreement with Canadian Pacific Railway for ties.

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