PlasCred Awarded $5 Million Grant from Emissions Reduction Alberta to Advance Neos Facility

Rhea-AI Summary

PlasCred Circular Innovations (CSE: PLAS) has secured a $5 million non-dilutive grant from Emissions Reduction Alberta for its Neos commercial-scale facility development. The facility will process 100 tonnes of post-consumer plastic waste daily, producing approximately 500 barrels per day of Renewable Green Condensate™.

The Neos facility, with a $25 million capital cost, is projected to generate $19 million in annual revenue and $6.9 million in EBITDA. The company has secured a five-year offtake agreement at CAD $120.00 per barrel with a global commodities company. The project expects an IRR of 22.8% with a 4.3-year payback period.

Located at CN Rail's Scotford Yard in Fort Saskatchewan, the facility will reduce greenhouse gas emissions by 51,000 tonnes of CO₂e annually while diverting 36,500 tonnes of plastic waste per year.

Positive

• None.

Negative

• High capital cost requirement of $25 million for facility construction
• Project execution subject to final financing and permitting approval
• Financial projections based on assumptions and subject to market risks

Calgary, Alberta--(Newsfile Corp. - July 23, 2025) - PlasCred Circular Innovations Inc. (CSE: PLAS) (FSE: XV2) (the "Company" or "PlasCred"), an Alberta-based clean technology company focused on advanced plastic recycling, is pleased to announce it has been awarded $5 million in non-dilutive funding from the Alberta government through Emissions Reduction Alberta ("ERA") to support the development of its first commercial-scale facility, Neos.

PlasCred has already demonstrated proof-of-concept success with patent-pending Primus, its pilot-scale unit, which has been operational since May 2023. Primus has served as a foundational testing platform, validating the conversion of waste plastics into high-value Renewable Green Condensate™, a low sulphur, low carbon circular naphtha used as feedstock for the production of virgin plastic ("Condensate").

"By investing in advanced materials and circular economy solutions, we're helping Alberta's industries stay competitive, create jobs, and reduce emissions. This funding supports technologies that make better use of our resources while cutting costs. It's a win for both the economy and the environment." said Justin Riemer, CEO, Emissions Reduction Alberta

With the Alberta government's support through ERA, PlasCred is advancing from pilot validation to commercial deployment, building on the technical and operational insights gained from its Primus facility to begin construction of the Neos facility and ensure a smooth transition to full-scale operations.

"The Alberta government and ERA's support marks a critical milestone for PlasCred as we transition to commercial deployment," said Troy Lupul, President & CEO of PlasCred. "With this funding, we can move forward on construction, attract additional project capital, and demonstrate the role Alberta-based innovation can play in scaling circular solutions for hard-to-recycle plastics."

Strategic Scalability in Alberta's Industrial Heartland

PlasCred's entire scalability strategy is anchored at CN Rail's Scotford Yard in Fort Saskatchewan, inside Alberta's Industrial Heartland Canada's pre-eminent hydrocarbon-processing corridor. The permitted yard offers enclosed industrial buildings, a 200-car siding, existing utilities, and direct Class I rail connectivity. This combination delivers reliable inbound feedstock logistics and seamless outbound product shipment while giving PlasCred access to a highly skilled process-operations workforce and a business-friendly regulatory environment. Neos and the follow-on Maximus complex will be co-located at Scotford, capturing shared infrastructure and operating synergies.

The Neos facility will initially process 100 tonnes (metric) of post-consumer plastic waste per day converting it into approximately 500 barrels per day of condensate. Once operational, the Neos facility is expected to divert 36,500 tonnes of plastic waste annually and reduce greenhouse gas emissions by an estimated 51,000 tonnes of CO₂e per year. The design incorporates PlasCred's proprietary dual catalytic pyrolysis technology. This approach minimizes energy consumption, improves safety, and enables the efficient conversion of mixed and contaminated plastics, including PVC and PET. Unlike incineration or waste-to-energy approaches, PlasCred's process produces a circular petrochemical feedstock that can be reused in the production of new, food-grade plastics. The system has been validated through over two years of continuous operation at the Primus pilot facility in Calgary.

The Neos facility is forecasted to generate approximately $19 million in annual revenue and $6.9 million in EBITDA, based on management assumptions regarding feedstock cost, uptime, and offtake pricing. Neos has an estimated capital cost of $25 million, with construction targeted to begin later this year, subject to final project financing and permitting. Based on internal forecasts and current engineering assumptions, the project is expected to deliver an internal rate of return (IRR) of approximately 22.8% and a payback period of 4.3 years. These forward-looking estimates are based on internal models and subject to risks including construction timing, input costs, operations, and market conditions. The projected economics remain strong even without accounting for potential upside from plastic credit monetization or byproduct sales.

PlasCred has executed a definitive five-year offtake agreement with a global commodities company ("GCC") for 100 percent of Neos production at a fixed price of $120.00 CAD per barrel, inclusive of freight terms. The agreement also includes a right of first refusal ("ROFR") on future volumes from PlasCred's next phase facility, Maximus. This offtake structure ensures predictable revenue and underpins long term capital planning.

Neos will integrate Palantir Foundry, an industrial data platform from Palantir Technologies to capture real-time data on feedstock, facility performance and product quality; generate auditable life-cycle assessments (LCA) that verify every tonne of waste plastic is converted into new plastic and support Extended Producer Responsibility (EPR) compliance; track plastic-credit issuance, greenhouse-gas (GHG) emissions, and logistics for both inbound feedstock and outbound product; and fuse all inputs into a digital twin that delivers 360-degree operational visibility and AI-driven optimisation across PlasCred's entire business.

The proposed Maximus facility is engineered to launch at 400 metric tonnes per day, approximately 2,000 barrels per day, and scale up to 2,000 tonnes per day, or 10,000 barrels per day condensate, through modular expansion. This co-location approach leverages existing enclosed infrastructure, CN integrated rail logistics, and shared site services, offering significant cost and execution advantages while anchoring Alberta as a hub for scalable, low carbon plastic circularity.

PlasCred is well positioned for sustainable, long-term growth through a combination of strategic site selection, integrated logistics, and secured revenue from industry partnerships. Its co-located infrastructure at CN's Scotford Yard enables scalable deployment while minimizing execution risk.

With support from the Alberta government through ERA, PlasCred is accelerating to commercial operations at Neos. This milestone highlights the strength of Alberta-developed technology and reinforces the province's leadership in advancing circular economy infrastructure. Neos represents a significant step forward in scaling clean, plastics-to-plastics innovation rooted in Alberta's industrial and innovation ecosystem.

About PlasCred Circular Innovations Inc.

PlasCred is at the forefront of rebalancing the future of plastics. The company is transforming plastic waste by granting it a valuable second life. With a vision of advancing towards a climate-positive future, PlasCred aspires to be among the largest advanced plastic waste recyclers in North America and globally. Their groundbreaking patent-pending technology is set to revolutionize the approach to plastic waste management and advanced recycling.

PlasCred also has strategic partnerships with CN Rail, Palantir Technologies Inc., the Government of Alberta, Fibreco Export Inc., and a Global Commodities Company. These collaborations provide PlasCred with world-class logistics, advanced operational intelligence, and stable long-term revenue, supporting its leadership in the global circular plastics economy.

For further information on PlasCred, visit our website at www.PlasCred.com.

ON BEHALF OF THE BOARD

Troy Lupul - President & CEO

Contact Information

For more information please contact:
PlasCred Circular Innovations Inc.
Troy Lupul
Email: IR@PlasCred.com

Forward-looking Statements

Forward-looking statements in this release include, but are not limited to: the timing and cost of constructing the Neos facility; projected operating performance, revenues, EBITDA, internal rate of return and payback period; expected greenhouse-gas reductions; the availability of financing, feedstock and regulatory approvals; and the Company's broader commercialization and expansion plans. Such statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including, without limitation: construction and commissioning risks, cost overruns, supply-chain disruptions, operational performance at scale, feedstock pricing and availability, changes in commodity prices, regulatory or permitting delays, counter-party risk under offtake or financing agreements, and general economic conditions. A discussion of these and other factors that may affect future results is contained in the Company's continuous disclosure filings available under its profile on SEDAR+ at www.sedarplus.ca.

Forward-looking statements are not guarantees of future performance and readers should not place undue reliance on them. Except as required by applicable securities laws, the Company undertakes no obligation to revise or update any forward-looking statements to reflect new events or circumstances.

The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/259740

FAQ

What is the value and impact of PlasCred's ERA grant for the Neos facility?

PlasCred received a $5 million non-dilutive grant from Emissions Reduction Alberta to develop its Neos facility, which will process 100 tonnes of plastic waste daily and reduce greenhouse gas emissions by 51,000 tonnes annually.

What are the projected financial metrics for PlasCred's Neos facility?

The Neos facility is projected to generate $19 million in annual revenue and $6.9 million in EBITDA, with an IRR of 22.8% and a 4.3-year payback period on a $25 million capital investment.

What is the production capacity and offtake agreement for PlasCred's Neos facility?

The facility will produce 500 barrels per day of Renewable Green Condensate™, with a secured five-year offtake agreement at CAD $120.00 per barrel for 100% of production.

Where will PlasCred's Neos facility be located and why?

The facility will be located at CN Rail's Scotford Yard in Fort Saskatchewan, Alberta's Industrial Heartland, offering strategic advantages including enclosed industrial buildings, rail connectivity, and access to skilled workforce.

How much plastic waste will PlasCred's Neos facility process annually?

The Neos facility will process 36,500 tonnes of plastic waste annually (100 tonnes per day), converting it into circular petrochemical feedstock for new, food-grade plastics.