CVW Cleantech Announces Receipt of Non Binding Indicative Terms FOR Technology Performance Insurance
CVW CLEANTECH ANNOUNCES RECEIPT OF
NON BINDING INDICATIVE TERMS FOR
TECHNOLOGY PERFORMANCE INSURANCE
CALGARY, AB
,
Jan. 17, 2024
/CNW/ -
CVW CleanTech Inc. (the "Company" or "CVW
CleanTech")
(TSXV: CVW) is pleased to announce that it has received a letter of intent ("LOI")
from a global insurance company containing non-binding indicative terms to potentially underwrite the
development of a Creating Value from Waste
TM
("CVW
TM
") EcoBase project. This potential
Technology Performance Insurance ("TPI") includes policy limits of
$50.0 million
for startup repair
coverage and
$66.7 million
of long-term output coverage, advancing a critical pillar of the de-risking
activities for commercialization of the CVW
TM
technology. This non-binding indication is subject to
due diligence, legal, and documentation review that is satisfactory to all parties. Due diligence is
expected to commence once CVW CleanTech has entered into an agreement to deploy the CVW
TM
technology at an oil sands mining site.
CVW CleanTech's CEO,
Akshay Dubey
, said: "Receipt of non-binding indicative terms for technology
performance insurance is a significant step towards de-risking the development of a first CVW
TM
project. The interest by a leading global insurance partner evidences the robust engineering process
utilized in developing the CVW
TM
technology, and the significant environmental benefits which would
be achieved by the oil sands industry through a CVW
TM
EcoBase project implementation."
The potential TPI would provide a bespoke, long-term, and non-cancellable risk management
solution for a potential first of its kind CVW
TM
EcoBase implementation at a host oil sands mining
site. The potential policy could include both startup repair and long-term (operating) coverage:
Startup repair coverage
: The startup repair policy would provide up to
$50.0 million
of
additional funding to support an EcoBase project, after its commissioning period, in reaching
name plate capacity and starting commercial operations.
Long-term (operating) output coverage
: The long-term output policy would provide up to
$66.7 million
over 5 years should recovery of bitumen and solvent from wastewater, as well as
GHG abatement credits, fall below an agreed threshold. This coverage could finance debt
service and other critical costs while corrective action is implemented to reduce potential output
underperformance.
Mr. Dubey continued "The startup repair coverage is in addition to the
$47.0 million
contingency
already included within the
$390.0 million
total expected capital cost of a potential EcoBase project.
We would like to extend our sincere thanks to our insurance partners who responded to our requests
for interest. Technology performance insurance could provide the Company and its partners with
additional comfort should total capital costs of an EcoBase project exceed the
$390.0 million
forecasted as a result of an insurable event. Additionally, the long-term output coverage provides
financial comfort should a baseline level of bitumen, solvent, and/or GHG abatement credits not be
recovered. A potential TPI policy would only respond up to the policy limits.
CVW CleanTech's management team will continue to work with the insurance markets and our
broker partners to secure additive insurance coverage and commercial commitments. While the LOI
is not a binding offer of insurance, it establishes the foundation to continue discussions and
potentially deliver an insurance solution with long-term benefits to CVW CleanTech and its project
partners."
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, the implementation of CVW
TM
's EcoBase development option could be
expected to:
Recover 2.2 million barrels of hydrocarbons (1.9 million barrels of bitumen and 0.3 million
barrels of solvent);
Abate between 380 to 850 thousand tonnes of CO
2
equivalents, primarily methane;
Eliminate up to 5,000 tonnes of volatile organic compounds (VOCs);
Potentially eliminate tailings pond growth due to froth treatment operations, and
Generate annual revenues of
$248 million
within the province of
Alberta
.
Diverting the froth treatment tailings stream to a CVW
TM
EcoBase operation could recover up to
90% of bitumen and solvent that are currently lost into tailings ponds, and avoid the associated
fugitive methane emissions. 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/
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 the results of deployment
of
CVW
TM
technologies and its business plan,
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: 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. 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; 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; 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
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/January2024/17/c4005.html
%SEDAR: 00003982E
CO: CVW CleanTech Inc
CNW 08:00e 17-JAN-24