Northstar Clean Technologies Conference Summary Company Overview - **Company Name**: Northstar Clean Technologies - **Ticker Symbols**: ROOOF (OTCPK), ROOF (TSXV) - **Industry Focus**: Waste management and recycling, specifically asphalt shingle recycling Key Points and Arguments Market Opportunity - **Landfill Waste**: Approximately 16.5 million tons of asphalt shingles are sent to landfills annually, equating to over 20 million barrels of oil per year [7] - **Industry Goals**: The Asphalt Roofing Manufacturers Association (ARMA) aims to reduce landfill shingles by 50% by 2035 and achieve 100% diversion by 2050 [8] - **Facility Capacity**: The Northstar facility can divert 40,000 tons of shingles per year, with potential to double to 80,000 tons if operated continuously [8] Revenue Model - **Revenue Streams**: Revenue is generated from two main sources: - **Tipping Fees**: Approximately CAD 113 per ton for shingles diverted from landfills, contributing about 35% of total revenue [9][12] - **Product Sales**: Revenue from extracted materials, particularly asphalt, which can sell for CAD 500 to CAD 1,000 per ton, making up about 65% of total revenue [11][12] Operational Insights - **Facility Construction**: The first commercial facility in Calgary is currently being ramped up for operations, with expectations for cash flow generation [5] - **Feedstock Supply Agreements**: Secured agreements with Calgary municipality for the collection and segregation of shingles, ensuring a steady supply of feedstock [15] - **Partnerships**: 20% ownership by TAMKO, a U.S. shingle manufacturer, which provides guaranteed offtake agreements for asphalt produced [13][17] Financial Projections - **Facility Economics**: A 40,000-ton facility costs about CAD 25 million to build, generating approximately CAD 10 million in revenue and CAD 5 million in EBITDA annually [19] - **Growth Strategy**: Plans to build 10 facilities to reach a market cap of CAD 1 billion, with a focus on regions with high tipping fees [22][23] Expansion Plans - **Future Facilities**: Identified locations for future facilities include Hamilton, Ontario, and a site near TAMKO's facility in Maryland, with plans for additional U.S. facilities [20][21] - **Market Size**: To address the U.S. market, Northstar estimates needing between 200 to 400 facilities to service 50% of the addressable market [34] Additional Important Information - **Government Support**: Received CAD 7.1 million in non-dilutive funding from Emissions Reduction Alberta [18] - **Operational Timeline**: The permitting process for new facilities typically takes about one year, followed by six months of construction and two to three months of commissioning [31] - **Technical Risks**: The company has de-risked its operations significantly, producing high-quality asphalt oil and learning from the commissioning of the Calgary facility [32] This summary encapsulates the key insights and strategic direction of Northstar Clean Technologies as discussed in the conference.