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CHAR Technologies (YES) investor relations material
CHAR Technologies Planet MicroCap Showcase: TORONTO 2025 summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Market approach and technology
Focus on converting woody biomass into renewable energy products using high-temperature pyrolysis, producing biocarbon and renewable natural gas.
Thorold facility in Ontario is the first project, with production starting in 2026 and expected CAD 4.5 million in revenue, scaling to CAD 28 million as renewable natural gas comes online.
Renewable natural gas commands a significant market premium, with 20-year offtake agreements at CAD 40 per gigajoule, well above standard natural gas prices.
Biocarbon serves as a drop-in replacement for metallurgical coal, targeting green steel markets, especially in Europe.
Strategic partnerships with ArcelorMittal, BMI Group, and Lake Nipigon Forest Management Inc. provide offtake, investment, and feedstock supply.
Project pipeline and expansion
Thorold, Lake Nipigon, and Espanola are the primary facilities, each leveraging different development models: brownfield, greenfield, and integration with existing infrastructure.
Modular plant design allows scaling based on biomass availability, with Lake Nipigon offering larger capacity due to abundant feedstock.
Additional projects in development include St. Felicina (Quebec) and a biosolids-focused facility in Baltimore for Synagro.
Baltimore project demonstrates PFAS destruction in biosolids, using a licensing and engineering fee model rather than ownership.
Project financing relies on a mix of non-dilutive government grants, project equity, and non-recourse debt, minimizing the need for large corporate-level financings.
Financials and economics
Thorold project targets CAD 1.25 million in free cash flow to equity partners in the initial phase, increasing as renewable natural gas is added.
Lake Nipigon project has a CapEx of CAD 55 million, with expected IRR in the high 20s% to low 30s% range, factoring in grants and a 70/30 debt-to-equity ratio.
Feedstock costs are the largest expense, followed by labor, and are fully integrated into financial models.
Modular expansion at Lake Nipigon involves phased kiln additions, with revenue ramping up as capacity increases and renewable natural gas is introduced.
Project-level investments total CAD 28 million, with significant non-dilutive government funding and strategic partner contributions.
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