Northstar Successfully Completes Front-End Engineering Design For Scale Up Asphalt Shingle Reprocessing Facility

April 1, 2022

6 Min Read
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VANCOUVER, BC - Northstar Clean Technologies Inc. (TSXV: ROOF) (OTCQB: ROOOF) ("Northstar" or the "Company") has received a front-end engineering design (the "FEED") technical report completed by independent third-party BBA Engineering Ltd. ("BBA") for its planned scale up facility to be constructed in Calgary, Alberta (the "Calgary Empower Facility"). As previously announced by the Company on November 1, 2021, the Company engaged with BBA as consulting engineering firm to provide an independent detailed engineering design study of a modular facility to be deployed across Northstar's expansion facilities. All currencies within this press release are quoted in Canadian dollars.

The following conclusions, subject to the assumptions and parameters set out therein, were reached in the FEED study:

  • Direct Costs: $8.6 Million

    • Equipment Costs: $7.1 Million

    • Labour and Materials: $1.5 Million

  • Indirect Costs: $1.2 Million

  • Total Direct and Indirect Costs: $9.8 Million (excluding 20% contingency)

  • Contingency (20%): $2.0 Million

  • Total Capital Cost Estimate: $11.75 Million (including 20% contingency)

Mr. Aidan Mills, President & CEO of Northstar, stated, "For a sustainable, ESG-focused business to succeed it needs: Step 1) a technology that works; Step 2) the ability to scale up that technology; and, Step 3) a clear and profitable commercialization strategy. Steady state production of specification products at our Empower Pilot Facility in Delta, B.C. demonstrates Step 1 and our announcement of the successful completion of our FEED means we are on a clear pathway to Step 2. This is an important milestone in the development of Northstar and our scale up facility design. The FEED study is the first independent engineering analysis of our transformational technology, and we are delighted that our initial estimates of capital costs have been confirmed. We are confident that the work carried out by the integrated Northstar and BBA design team has reached an engineering solution that can deliver our scale up objectives on a timeline that meets our plans and at an estimated cost that makes our innovative solution extremely economic, deployable and attractive. Combined with our revised economic analysis, we now believe this scale up solution is a truly compelling way to solve a major environmental issue and to provide triple bottom line benefits to the environment, to society and to stakeholders, including shareholders, employees and communities where we operate."

Mr. Geoff Hall, Director of Business Development for BBA, stated, "BBA is pleased to have delivered the FEED to Northstar as consulting engineer for Northstar's expansion plans to roll out modular asphalt shingle reprocessing facilities across Canada and the United States. The strong collaboration between BBA and Northstar during the FEED process validated the scope and understanding of the project. This was critical in allowing the project team to develop a capital estimate that brings certainty. We look forward to working alongside Northstar as we advance the Calgary Empower Facility in 2022 and further optimize Northstar's planned facilities moving forward."

Table 1: Capital Cost Estimate (all figures in C$ thousands)

Direct Costs

Equipment

Plant and Yard Mechanical

Electrical

Automation / Telecommunications

Total Equipment

Labour and Materials

Civil

Structural & Architectural

Piping

Electrical

Automation / Telecommunications

Total Labour and Materials

Direct Costs Total

Indirect Costs

Plant

Project Indirect Costs

Indirect Costs Total

Direct Costs Total

Direct and Indirect Costs (excluding Contingency)

Contingency (20%)

Capital Cost Estimate - Grand Total (including Contingency)

Notes: Figures may not add due to rounding. All fees are estimates and are quoted in Canadian dollars based on an exchange rate of 1.265 Canadian dollars for everyone one United States dollar as per the Bank of Canada exchange rate on March 17, 2022.

Purpose of Front-End Engineering Design

The purpose of the FEED study was to produce a capital cost estimate (the "Capital Cost Estimate") for the process, including necessary definition on all process, mechanical and utility equipment, electrical, automation and control. The other primary purpose of the FEED study was to develop the design details required so that Phase 2 detailed engineering can generate the needed engineering deliverables and construction plans to start construction in 2022.

Type and Purpose of the Capital Cost Estimate

The Capital Cost Estimate has been prepared within the targeted nominal estimate accuracy of +/- 20% with deliverables developed to a level sufficient for supporting a Class 3/4 Pre-Feasibility estimate as defined in AACE International Recommended Practice No. 18R-97.

General FEED Design Criteria

The general design criteria adopted for the FEED are shown in Table 2 below.

Table 2: General Design Criteria

FEED Engineering Deliverables (Completed):

Parameter

Units

Value

Nominal throughput

Tonnes per hour ("tph")

15 tph

Shingle Composition

Aggregate

% weight

50%

Fiber

% weight

25%

Asphalt

% weight

25%

Recovery

Asphalt

%

>95%

Aggregate

%

>95%

Fiber

%

>95%

The FEED stage engineering deliverables completed were the following:

Detailed Design Engineering Deliverables (in Progress):

  • Engineering Discovery Meeting Summary;

  • Process Flow Diagram;

  • Heat Mass Balance;

  • Process Design Basis;

  • Master Equipment List;

  • Process Improvement Studies;

  • Preliminary 3D Model ;

  • Equipment Layout and Pipe Routing;

  • Electrical Load List;

  • Emissions Summary.

Detailed design stage engineering deliverables have commenced in a number of areas including:

Next Steps:

  • Process and Instrument Diagram ("P&ID"):

  • Hazard Area Assessment ("HAZOP") ;

  • Long lead / critical equipment datasheets;

  • Long lead or critical equipment technical specs;

  • Key process detailed design;

  • Hazardous area classification;

  • Single line diagram;

  • Instrument index;

  • Network architect drawing;

  • Level 2 schedule (Project timeline);

  • Water Management Roadmap (Containment).

In line with the FEED study deliverables, three key next steps are being progressed:

Cautionary Note

  1. Board of Directors approval has been received to commence detailed engineering (equipment manufacturer drawings and design) for any long lead items required for the project;
     

  2. Detailed engineering studies have commenced on critical processes within the scale up design;
     

  3. Full plant detailed engineering design will commence on the progression of steps 1 and 2 above.

The Company cautions that the FEED is preliminary in nature and is based on technical and economic assumptions which could be further refined and evaluated in the planned detailed engineering report.

About BBA

BBA has been providing a wide range of consulting engineering services for over 40 years. Today, its engineering, environmental and commissioning experts team up to quickly and accurately pinpoint the needs of industrial and institutional clients. The firm's expertise is recognized in the energy and natural resources industry. With 15 offices in Canada and internationally (Chile) offering clients local support and field presence, BBA is recognized for providing some of the industry's most innovative, sustainable and reliable engineering solutions and strategic advisory services.

About Northstar

Northstar Clean Technologies Inc. is a Vancouver-based clean technology company focused on the sustainable recovery and reprocessing of asphalt shingles. Northstar has developed a proprietary design process for taking discarded asphalt shingles, otherwise destined for already over-crowded landfills, and extracting the liquid asphalt, aggregate and fiber for usage in new hot mix asphalt, construction products and other industrial applications. Focused on the circular economy, Northstar plans to reprocess used or defective asphalt shingle waste back into its three primary components for reuse/resale at its Empower Pilot Facility in Delta, British Columbia. As an emerging innovator in sustainable processing, Northstar's mission is to be the leader in the recovery and reprocessing of asphalt shingles in North America, extracting the recovered components from asphalt shingles that would otherwise be sent to landfill.

For further information about Northstar, please visit www.northstarcleantech.com.

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