CHAR Technologies (OTCPK:CTRN.F) 2025 Conference Transcript

Summary of Char Technologies Conference Call Company Overview - Char Technologies specializes in converting woody biomass into renewable energy products using proprietary high-temperature pyrolysis technology, which operates at 800-900 degrees Celsius without oxygen [2][4]. Key Projects and Revenue Streams - The first facility in Thorold, Ontario, is expected to start production in 2026, generating approximately $4.5 million in project revenue and $1.25 million in free cash flow to equity partners [5]. - The second product, renewable natural gas (RNG), is projected to increase revenue to $28 million, with $9 million returned to equity partners due to financing through nonrecourse project debt [6]. - The company is targeting a fixed price of $40 per gigajoule for RNG, significantly higher than the $5 per gigajoule for conventional natural gas [8]. Market Dynamics - The demand for biocarbon, also referred to as bio coal, is driven by the green steel movement, particularly in Europe, where there is a push for lower carbon intensity in steel production [10]. - Minimum RNG mandates in British Columbia and Quebec are incentivizing producers, leading to increased pricing for renewable natural gas [10]. Strategic Partnerships - Char Technologies has partnered with ArcelorMittal, the second-largest steel and mining company, which invested in Char in 2023 and will be the offtaker for bio coal from the Thorold project [11][12]. - The BMI Group invested $8 million into the Thorold project and owns defunct pulp and paper mills, providing access to biomass for Char's projects [13]. - Lake Nipigon Forest Management Inc. is a key partner for the Lake Nipigon project, offering 500,000 tonnes of wood waste annually [14]. Project Development and Future Plans - The company is developing multiple projects, including the Thorold facility, Lake Nipigon, and a project in Saguenay, Quebec, with plans for modular plants to adjust based on biomass availability [15][16]. - The Baltimore project focuses on destroying PFAS chemicals from biosolids, with a demonstration plant built in collaboration with Synagro [28][30]. Financial Overview - Char Technologies has secured $28 million in project-level investments, primarily from non-dilutive government grants [34]. - The company operates with a 50% ownership stake in its projects, allowing it to capture significant revenue streams [24][25]. Challenges and Regulatory Environment - The company faces challenges related to the competitive market for biomass feedstock, which is its largest cost component [44]. - Regulatory pressures regarding PFAS contamination are driving demand for Char's technology, as traditional disposal methods are becoming less viable [30][41]. Conclusion - Char Technologies is positioned to capitalize on the growing demand for renewable energy products through strategic partnerships and innovative technology, with a clear roadmap for project development and revenue generation [36].