CVW Cleantech Announces Receipt of Economic Impact Assessment and Grant of Equity Awards
CVW CLEANTECH ANNOUNCES RECEIPT OF
ECONOMIC IMPACT ASSESSMENT AND
GRANT OF EQUITY AWARDS
CALGARY, AB
,
Feb. 7, 2024
/CNW/ -
CVW CleanTech Inc. (the "Company" or "CVW
CleanTech")
(TSX-V: CVW) is pleased to announce that it has received an economic impact
assessment detailing the significant economic and social impacts which would be expected through
the implementation of its ready-to-deploy Creating Value from Waste
TM
("CVW
TM
") technology.
Report Highlights:
Over a 24 year period, the implementation of a single CVW
TM
project could generate up to
5,000 direct person-years of employment in
Alberta
, with an additional 19,000 person-years of
combined indirect and induced employment created in
Alberta
and
Canada
. A single CVW
TM
project could contribute up to
$6.9 billion
and
$7.9 billion
to
Alberta's
and
Canada's
GDPs
respectively.
Over a 24 year period, industry wide implementation of the CVW
TM
technology could lead to the
creation of up to 30,000 direct person-years of employment in
Alberta
, with an additional
114,000 person-years of combined indirect and induced employment created in
Alberta
and
Canada
.
The Government of
Alberta
could generate additional revenues of up to
$340 million
annually
and
$8.2 billion
over a 24 year period, primarily through royalties and corporate taxes.
The Government of
Canada
could generate additional revenues of up to
$371 million
annually
and
$8.9 billion
over a 24 year period, primarily through personal and corporate taxes.
All values are expressed in
2023 Canadian dollars
, except employment which is expressed in
person-years. The economic impact analysis was prepared by
Ron Schlenker
, Senior Instructor
Emeritus at the
University of Calgary's
Department of Economics. Readers are encouraged to
review the full economic impact analysis report available on the Company's website, which is
accessible using the link below:
https://cvwcleantech.com/technology/economic-impact/
CVW CleanTech's CEO,
Akshay Dubey
, said "The independent economic impact analysis further
confirms the economic and social benefits which would be achieved through the implementation of a
CVW
TM
project. The Company's ready-to-deploy technology would provide the Government of
Alberta
and the Federal Government with revenue through the commercialization of bitumen and
green critical minerals currently being treated as waste and sent into the vast oil sands tailings
ponds. This creates a significant opportunity to maximize our resource wealth while increasing the
environmental performance of the oil sands mining industry. This is in addition to the abatement of up
to 5,000,000 tonnes of carbon dioxide equivalents, primarily methane. Importantly, this would also
provide an incredible new employment opportunity for communities in the region, including Indigenous
groups, as well as an attractive diversification opportunity."
The economic impact assessment outlines the potential economic benefits, in
Alberta
and in
Canada
broadly, of implementing the Company's technologies. The assessment is based upon certain
assumptions made by the author, and information provided by the Company, as described within the
full report. Actual conditions may differ significantly from those assumed in the assessment.
Summary Estimated Economic Contributions – per Schlenker Consulting Limited Economic
Impact Report
The values below are presented in millions of
2023 Canadian dollars
except employment figures
which are presented in person-years. The potential economic impacts are presented for CVW
CleanTech's EcoMax and EcoBase development options:
The EcoBase development option allows the recovery of bitumen and solvent, the abatement of
approximately 90% of the methane from froth treatment tailings, and significant reduction to the
volume of volatile organic compounds and secondary organic aerosols currently emitted from oil
sands tailings ponds;
The EcoMax development option includes all the positive efforts of the EcoBase project plus the
recovery of critical minerals in titanium and zircon concentrates.
CVW
TM
EcoMax Development Option - Construction Phase
Single Site
Industry Wide
Alberta
Canada
Alberta
Canada
GDP
1,040
1,283
6,242
7,696
Labour Income
732
867
4,393
5,199
Provincial Government Revenue
74
100
446
601
Federal Government Revenue
210
252
1,257
1,511
Employment
6,680
8,745
40,081
52,468
CVW
TM
EcoMax Development Option - 20 Year Operating Phase
Single Site
Industry Wide
Alberta
Canada
Alberta
Canada
GDP
5,903
6,613
35,417
39,678
Labour Income
1,070
1,435
6,420
8,611
Provincial Government Revenue
1,288
1,360
7,725
8,159
Federal Government Revenue
1,109
1,233
6,654
7,398
Employment
9,841
15,299
59,048
91,794
CVW
TM
EcoBase Development Option - Construction Phase
Single Site
Industry Wide
Alberta
Canada
Alberta
Canada
GDP
366
452
2,193
2,711
Labour Income
260
308
1,563
1,850
Provincial Government Revenue
26
36
158
213
Federal Government Revenue
74
89
445
536
Employment
2,351
3,083
14,108
18,498
CVW
TM
EcoBase Development Option - 20 Year Operating Phase
Single Site
Industry Wide
Alberta
Canada
Alberta
Canada
GDP
2,898
2,989
17,387
17,934
Labour Income
344
393
2,062
2,357
Provincial Government Revenue
688
698
4,128
4,186
Federal Government Revenue
667
683
4,001
4,099
Employment
3,144
3,922
18,861
23,533
Grant of Management Equity Awards
The Company also announces that it has granted 1,099,692 stock options and 886,457 restricted
share units (RSUs) to certain employees as part of the 2023 year end performance incentive
program. The stock options include both time and performance based vesting conditions, are
exercisable at a price of
$0
.80 per share, and expire five years from the grant date. The RSUs vest
after one year of continued service.
The stock options and RSUs have been granted to officers and employees of the Company under
the terms of the Company's equity incentive plan (EIP). The EIP was approved by Shareholders of
the Company at the annual and special meeting of the Shareholders on
September 12, 2023
. The
EIP allows the grant of options, RSUs, and deferred share units to directors, officers, key
employees, and consultants of the Company, as determined by the Company's Board of Directors.
The EIP is a 'rolling' plan which provides that the aggregate maximum number of common shares
that may be issued upon the exercise or settlement of awards granted under the EIP shall not
exceed 10% of the Company's issued and outstanding common shares from time to time. The EIP is
subject to provisions for long-term incentive plans under the policies of the TSX Venture Exchange.
The full text of the EIP is available in the Company's management information circular for the annual
and special meeting of the Shareholders on
September 12, 2023
on SEDAR+ at
www.sedarplus.ca
.
About CVW CleanTech Inc.
CVW CleanTech Inc.
is a clean technology innovator working to develop sustainable technology
solutions. The Company has developed a suite of proprietary technologies called Creating Value
from Waste™ that recover bitumen, solvents, critical minerals, and water from oil sands froth
treatment tailings while significantly reducing tailings pond emissions and enhancing tailings
management.
On an annual basis, an industry wide implementation of CVW
TM
's EcoMax development option could
be expected to:
Recover 13.2 million barrels of hydrocarbons (11.4 million barrels of bitumen and 1.8 million
barrels of solvent);
Produce 1.5 million tonnes per year of critical mineral concentrates in the form of titanium and
zircon;
Abate up to 5,000,000 tonnes of CO
2
equivalents, primarily methane;
Eliminate up to 30,000 tonnes of volatile organic compounds (VOCs - considered toxic
substances by Environment and Climate Change Canada);
Potentially eliminate tailings pond growth due to froth treatment operations, and
Generate annual revenues of
$2.7 billion
within the province of
Alberta
.
Diverting the froth treatment tailings stream to a CVW
TM
EcoMax operation could recover up to 90%
of bitumen and solvent that are currently lost into tailings ponds, avoid the associated fugitive
methane emissions, as well as capture valuable zircon and titanium mineral concentrates. This
patented and ready-to-deploy process would produce "Ready-to-Reclaim" tailings to meet the
Alberta Energy Regulator's Directive 85 standards which would provide a step change in tailings
management and allow for progressive remediation.
CVW CleanTech has invested over
$100 million
and over 15 years to advance the CVW
TM
technology to ready-to-deploy status. This technology has been supported by large scale integrated
piloting and progressive commercial engineering studies resulting in 20 active patents. The
development of the Company's technology has been supported by the Government of
Alberta
and
the Federal Government along with oil sands industry partners. Additional information on CVW
CleanTech and its proprietary technology can be found within the Company's Process and
Technology Overview which is accessible using the link below:
https://cvwcleantech.com/technology/process-and-technology-overview/
About Schlenker Consulting Limited
Ron Schlenker
is the president of Schlenker Consulting Limited, a Senior Instructor Emeritus at the
University of Calgary's
Department of Economics, and a former Research Associate at the Institute
for Sustainable Energy, Environment and Economy (ISEEE). Ron has appeared as an expert
witness in regulatory hearings and has undertaken numerous studies presenting the cost benefit and
economic impact analyses of industrial development projects, efficiency analyses in the natural gas
and pipeline industries, macroeconomic modelling and economic indicators in the
Alberta
economy,
and damage assessments for cases of contract abrogation and land claim disputes. Ron holds a
Bachelor of Science in Engineering and a Master of Arts in Economics.
Disclosure regarding forward-looking information
This news release contains forward-looking statements and information within the meaning of
applicable Canadian securities laws (collectively, "forward-looking information") that reflect the
current expectations of management about the future results, performance, achievements,
prospects, or opportunities for CVW CleanTech.
Forward-looking statements are frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "intends", "estimates", "potential", "possible" and similar expressions, or
statements that events, conditions or results "will", "may", "could" or "should" occur or be achieved.
The forward-looking statements may include statements regarding expected timelines and results
of deployment of CVW
TM
technologies and its business plan, the anticipated adoption of CVW
TM
technologies by industry participants and the timing for the same, estimated financial results from
the implementation and adoption of CVW
TM
technologies, expected macroeconomic conditions for
the deployment of CVW
TM
technologies, potential diversification opportunities and other future
opportunities, statements regarding the benefits and implications of the implementation of our
technologies or other statements that are not statements of fact. Forward-looking statements are
statements about the future and are inherently uncertain, and actual achievements of the Company
may differ materially from those reflected in forward-looking statements due to a variety of risks,
uncertainties and other factors. For the reasons set forth above, investors should not place undue
reliance on forward-looking statements. Important factors that could cause actual results to differ
materially from the Company's expectations include: the ability to advance the technologies of the
Company on a timely basis or at all; reliance on estimates prepared by third parties; current
estimates and predictions being based on certain assumptions about the industry in which the
Company operates and macroeconomic conditions generally; uncertainties in the timing and
receipt of regulatory and exchange approvals; uncertainties involved in disputes and litigation;
fluctuations in interest rates, commodity prices, currency exchange rates, and other financial
conditions, and the resultant effect on viability of investments; changes in the availability, and cost,
of technical labour required for our business; price escalation and/ or inflationary pressures
affecting the cost of equipment and material required to commercialize our projects; the uncertainty
of estimates of capital and operating costs; the need to obtain additional financing and uncertainty
as to the availability and terms of future financing; the impact on the Company of increasing
inflation; and other risks and uncertainties disclosed in other information released by the Company
from time to time and filed with the appropriate regulatory agencies.
All forward looking statements are based on the Company's beliefs and assumptions which are
based on information available at the time these assumptions are made, and is necessarily based
upon a number of assumptions that, while considered reasonable by the Company, are inherently
subject to significant operational, business, economic and regulatory uncertainties and
contingencies. The Company has made the following assumptions in relation to the forward-
looking statements in this press release: the expected environmental and economic benefits to be
achieved from CVW™ technologies; the ability of the Company to successfully access various
government funding programs; reliance on economic estimations prepared and assumptions made
by third parties; the details of government funding programs and that such programs will be
implemented (and not change) as expected; that the Company will continue to be able to protect its
intellectual property and proprietary technologies; assumptions as to various market and
commercial opportunities for the Company and its technologies; and the ability of the Company to
continue to develop and commercialize its technologies. The forward-looking statements contained
herein are as of the date set out above and are subject to change after this date, and the Company
assumes no obligation to publicly update or revise the statements to reflect new events or
circumstances, except as may be required pursuant to applicable laws.
Although management believes that the expectations represented by such forward-looking
information or statements are reasonable, there is significant risk that the forward-looking
information or statements may not be achieved, and the underlying assumptions thereto will not
prove to be accurate. Actual results or events could differ materially from the plans, intentions and
expectations expressed or implied in any forward-looking information or statements, including the
underlying assumptions thereto, as a result of numerous risks, uncertainties and factors including:
failure to obtain regulatory approvals; the possibility that opportunities will arise that require more
cash than the Company has or can reasonably obtain; dependence on key personnel; dependence
on corporate collaborations; potential delays; uncertainties related to early stage of technology and
product development; uncertainties as to fluctuation of the stock market; uncertainties as to future
expense levels and the possibility of unanticipated costs or expenses or cost overruns; and other
risks and uncertainties which may not be described herein.
For further information, please contact:
Akshay Dubey
Joshua Grant
CEO
403.460.8135
CFO
403.460.8135
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE
CVW CleanTech Inc
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CNW 08:14e 07-FEB-24