Northstar Clean Technologies (ROOF) investor relations material

Market opportunity and industry context

• Asphalt shingle waste in North America totals 16.5 million tons annually, representing over 20 million barrels of oil equivalent per year.

• Industry targets include reducing shingle landfill waste by 50% by 2035 and eliminating it by 2050.

• Each facility can divert 40,000–80,000 tons of shingles per year, requiring up to 400 facilities to address the full market.

• Tipping fees for landfill disposal are rising, supporting the economic case for diversion.

• Asphalt supply is declining due to refinery closures, increasing demand for recycled product.

Technology, operations, and product value

• Facilities separate shingles into sand, fiber, and high-value asphalt, with asphalt selling for CAD 500–1,000 per ton.

• Patented process produces both hot oil and asphalt pellets for flexible transport and use.

• Revenue model: 35% from tipping fees, 65% from product sales, mainly asphalt.

• TAMKO, a major shingle manufacturer, owns 20% and has exclusive offtake agreements for first four US plants.

• Government grants, including CAD 7.1 million from Emissions Reduction Alberta, support facility development.

Expansion plans and financial outlook

• Calgary facility is operational and ramping up; next sites are Hamilton (Canada) and Maryland (US).

• Each facility costs CAD 25 million to build and can generate CAD 10–20 million in revenue and CAD 5–11 million in EBITDA, depending on capacity.

• Path to CAD 1 billion valuation involves building 10 facilities, each with 80,000-ton capacity.

• Targeting three new plants per year by 2027, with potential for licensing after five to six are built.

• Addressable US market could require 200–400 facilities; 23 facilities targeted by 2030.