CALGARY, AB, Jan. 10, 2022 /CNW/ - Tidewater Renewables Ltd.
("Tidewater Renewables" or the "Corporation") (TSX:
LCFS) is pleased to announce a second sale agreement with a second
investment-grade company to sell British Columbia Low Carbon Fuel
Standard ("BC LCFS") credits at an average price of
$478 per credit that it will receive
through the construction of the Renewable Diesel & Renewable
Hydrogen Complex at Prince George,
BC (the "Complex"), at values higher than previously
budgeted. Tidewater Renewables is also pleased to announce that it
recently closed a strategic acquisition of a used cooking oil
supplier (the "Acquisition"), providing certain feedstock
supply for a portion of the renewable fuels production from the
Complex.
Premium Value BC LCFS Credit Sale
Tidewater Renewables has agreed to sell a total of 25,000 BC
LCFS credits at an average price of $478 per credit, as compared to the first
disclosed sale at $425 per credit and
the previously disclosed budgeted value of $375 per credit for credits to be received under
the Renewable Diesel Project Part 3 Agreement with the British
Columbia Government. This agreement to sell credits extends to
March 2023 and further reduces the
value realization risk on a portion of the BC LCFS credits that
Tidewater Renewables will receive, realizing total proceeds of over
$11.9 million over the term of this
agreement.
With this transaction Tidewater Renewables has now agreed to
sales for over 50% of credits to be received by the commissioning
of the Complex expected in the first quarter of 2023. The
Corporation continues to work on other potential multi-year
agreements to monetize further credits that it will receive from
the construction and operation of the Complex, from its Canola
Co-Processing Facility, and from other projects.
Local Feedstock Supply Acquisition
Tidewater Renewables has recently closed the acquisition of a
used cooking oil supplier for total consideration of $3.5 million, consisting of cash and common
shares of Tidewater Renewables. The acquisition is aligned
with Tidewater Renewables' feedstock strategy of growing its
portfolio of discounted feedstocks, particularly those with a low
carbon intensity advantage, such as used cooking oil. The acquired
supplier is an established Alberta
based used cooking oil supplier with 12 years of operations and
approximately 1,200 collection points. Tidewater Renewables
plans to aggressively grow the acquired business and has already
improved realized pricing by approximately fifteen percent since
closing the acquisition.
Tidewater Renewables continues to progress other various
feedstock supply initiatives and long-term partnerships in order to
secure sufficient feedstock for the operation of the Complex and
other renewable fuels initiatives being pursued.
Forward-Looking Information
This news release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") that relate to the Corporation current
expectations and views of future events. These
forward-looking statements relate to future events or the
Corporation's future performance. Any statements that
express, or involve discussions as to, expectations, beliefs,
plans, objectives, assumption or future events or performance
(often, but not always, through the use of words or phrases such as
"will likely result", "are expected to", "expects", "will
continue", "is anticipated", "anticipates", "believes",
"estimated", "intends", "plans", "forecast", "projection",
"strategy", "objective" and "outlook") are not historical facts and
may be forward -looking statements and may involve estimates,
assumptions and uncertainties which could cause actual results or
outcomes to differ materially from those expressed in such
forward-looking statements. No assurance can be given that
these expectations will prove to be correct and such
forward-looking statements included in this new release should not
be unduly relied upon. These statements speak only as of the
date of this new release. In particular and without
limitation, this news release contains forward-looking statements
pertaining to future monetization opportunities for BC LCFS
credits, growth plans for its feed stock strategy and Tidewater
Renewables' business as described under the heading "About
Tidewater Renewables" below. Forward-looking information is based
on a number of assumptions and is subject to a number of risks and
uncertainties, many of which are beyond the Corporation's control,
which could cause actual results and events to differ materially
from those that are disclosed in or implied by such forward-looking
information. Such risks and uncertainties include, but are
not limited to, the factors discussed under "Risk Factors" in the
Corporation's supplemented PREP prospectus dated August 12, 2021, filed on SEDAR. Tidewater
Renewables' does not undertake any obligation to update such
forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable laws.
ABOUT TIDEWATER RENEWABLES
Tidewater Renewables is traded on the TSX under the symbol
"LCFS". Tidewater Renewables is a multi-faceted, energy transition
company. The Corporation is focused on the production of low carbon
fuels, including renewable diesel, renewable hydrogen, and
renewable natural gas, as well as carbon capture through future
initiatives. The Corporation was created in response to the
growing demand for renewable fuels in North America and to capitalize on its
potential to efficiently turn a wide variety of renewable
feedstocks (such as tallow, used cooking oil, distillers corn oil,
soybean oil, canola oil and other biomasses) into low carbon fuels.
Tidewater Renewables' objective is to become one of the leading
Canadian renewable fuel producers. The Corporation is pursuing this
objective through the ownership, development, and operation of
clean fuels projects and related infrastructure, utilizing existing
proven technologies. Organically, Tidewater Renewables will seek to
leverage the existing infrastructure and engineering expertise of
Tidewater Midstream and Infrastructure Ltd., its majority
shareholder, regarding the development of the Corporation's
portfolio of greenfield and brownfield capital projects as well as
the expansion of the Corporation's product offerings.
Additional information relating to Tidewater Renewables is
available on SEDAR at www.sedar.com and at
www.tidewater-renewables.com.
SOURCE Tidewater Renewables Ltd.