Canadian firm Ecolomondo Environmental (Hawkesbury) Inc., a subsidiary of Ecolomondo Corporation has announced that it has entered into a loan agreement for an amount of CAD 32.1 million in project financing with Export Development Canada (EDC), the proceeds of which are to be used to build the Company's new, first of its kind turnkey Thermal Decomposition facility that will be located in the Town of Hawkesbury, Ontario.
Pyrolysis Specialist Ecolomodo Takes Loan Agreement to Fund Hawkesbury Plant
The Loan will bear a floating interest rate using a Canadian reference base rate plus a market-based margin. Scheduled drawdowns are to begin in August 2019 upon completion of conditions precedent to funding, which are customary to financings of this nature. Repayment of the Loan is scheduled to commence on March 31, 2021 and the Loan will mature on June 30, 2031.
Once built and fully operational, this turnkey pyrolysis facility is expected to process a minimum of 14,000 tons of tyre waste per year and to produce 5,300 tons of recycled carbon black, 42,700 barrels of oil, 1,800 tons of steel and 1,600 tons of process gas.
Management now expects to break ground by June 2019 and to begin commissioning of the facility in the first quarter of 2020, as originally scheduled.
"Ecolomondo is proud to conclude this loan agreement for this innovative project and proud to do so with an extremely professional organization such as Export Development Canada. EDC will be a key player in the commercialization of our cleantech proprietary technology and in doing so EDC is supporting the development of Ecolomondo's future expansion both in Canada and overseas", said Eliot Sorella, President and CEO, Ecolomondo.