EnerPure Inc. (“EnerPure” or the “Company”), a recycling and energy transition company, is delighted to report on its progress towards deploying our first full-scale UMO (Used Motor Oil) recycling plant as we march towards achieving our goal of deploying 21 recycling plants in the next six years. We have now incorporated our product optimization work and latest engineering into our economic model and are pleased to report an increase in IRR from 49% to 51%.
During the first six months of 2024, the Company finalized its energy efficient Process Design and accompanying Process Flow Diagrams (PFDs), where it was determined that 28% of the marine fuel production could be an LSMGO (low sulphur marine gasoil) compliant product and the remainder (72%) would be VLSFO (very low sulphur fuel oil). It is worth noting that LSMGO sells at a premium to VLSFO and both EnerPure’s LSMGO and VLSFO products have a < 1,000 ppm sulphur content, well below required industry standards. The Recycling Plant continues to boast an industry-leading 92% conversion rate from UMO to marine fuel and a 95% saleable product conversion rate when including by-products.
Todd Habicht, CEO and Founder commented: “The completion of our product optimization work and the successful production of recycled LSMGO further enhance both our environmental credentials and financial returns. Leveraging the experience from our pilot plant, our engineering team, in collaboration with Ascent Engineering, has finalized the process flow diagrams. The robust economics of our Alberta Recycling Plant underscore our capability to deploy 21 recycling plants over the next six years, aiming to eliminate half a million tonnes of GHG emissions.”
Through its work, the Company was able to update a number of assumptions underlying its Alberta recycling plant financial projections. The updated economics include adjustments made following the conclusion of the Company’s validation efforts wherein 1.6m litres of Used Motor Oil (UMO) were processed at its pilot plant, and through the advancement of the engineering work led by the experienced firm of Ascent Engineering Inc. (“Ascent”).
The finalization of the process design and PFDs will enable the Company to update its carbon intensity and GHG reduction calculations. Life Cycle Associates has been engaged to complete this update and expects to be able to report on this shortly. The Company wants to ensure that its Recycling Plant(s) are robust in their design and operating capabilities and that they provide long-term robust economic returns. For this reason, the Company does not account for any GHG credits or recycling fees in its economics.
A low capital cost of $14.9m USD per facility enables EnerPure to bring its UMO recycling solution to regions that otherwise would not be able to effectively or economically implement UMO recycling, delivering significant economic and environmental benefits to these areas.
