Northstar Clean Stock Price, News & Analysis

Northstar Clean Technologies Inc. (TSXV: ROOF, OTCQB: ROOOF) is a Canadian waste-to-value technology company in the industrials sector, focused on waste management and the sustainable recovery and reprocessing of asphalt shingles. The company states that it has developed and owns a proprietary design process that takes discarded asphalt shingles, which would otherwise be directed to landfills, and recovers valuable materials for reuse in industrial applications.

According to Northstar, its process extracts liquid asphalt for use in hot mix asphalt shingle manufacturing and asphalt flat roof systems, while also extracting aggregate and fiber/fibreglass for use in construction products and other industrial applications. The company describes this approach as part of the circular economy, aiming to reprocess used or defective asphalt shingle waste back into its primary components for reuse or resale.

Business focus and technology

Northstar characterizes itself as a waste-to-value technology business centered on asphalt shingle reprocessing. The company reports that it has developed a proprietary asphalt shingle reprocessing technology, including a patented Bitumen Extraction & Separation Technology (referred to as BEST in its disclosures about the Empower Calgary facility). This technology is designed to separate shingles into distinct product streams, including liquid asphalt, aggregate, fibre/fibreglass and, based on more recent announcements, limestone.

Northstar has disclosed that it has received patents in both the United States and Canada for elements of its asphalt shingle reprocessing technology, and that it continues to pursue further patent protection in the United States, Canada and other international jurisdictions. One of its U.S. patents, covering limestone recovery, is expected by the company to remain in force until 2045, and a second Canadian patent is expected to remain in force until 2042.

Empower Calgary Facility

The company’s first commercial scale-up facility is the Empower Calgary Facility, located in Rocky View County near Calgary, Alberta. Northstar describes this as its inaugural commercial asphalt shingle recovery and reprocessing facility. The facility uses the company’s proprietary technology to process discarded asphalt shingles and recover several product streams.

Northstar has reported that the Empower Calgary Facility can process up to 80,000 tonnes of discarded shingles annually on a two-shift basis, using its BEST process to recover liquid asphalt, aggregate, fibre and limestone for reuse in new paving, roofing and construction materials. The company has also indicated that the facility has reached an operational milestone of processing over 80 tonnes of shingle feedstock per day, which it links to a milestone under a contribution agreement with Emissions Reduction Alberta (ERA).

In its public communications, Northstar notes that the Empower Calgary Facility has produced high-quality liquid asphalt from both manufacturing waste shingles and end-of-life, tear-off shingles, and that this liquid asphalt can be converted into solid asphalt pellets. The company states that pelletization provides potential for broader market access by allowing asphalt to be transported in solid form.

Product lines and recovered materials

Based on the company’s disclosures, Northstar’s asphalt shingle reprocessing activities are associated with multiple product lines derived from discarded shingles:

• Liquid asphalt, recovered for use in hot mix asphalt shingle manufacturing and asphalt flat roof systems.
• Pelletized asphalt, created by converting recovered liquid asphalt into solid pellets, which the company indicates can improve logistics and market access.
• Aggregate, produced from the mineral components of shingles and intended for use in construction products and other industrial applications.
• Fibre/fibreglass, separated from shingles and described as suitable for construction and industrial uses.
• Limestone, which the company states is removed in its process and now represents a fourth product line, in addition to liquid or pelletized asphalt, aggregate and fibre/fibreglass.

Northstar has highlighted that limestone is added to shingles to improve durability and longevity, and that its ability to extract limestone directly from shingles both adds a product line and contributes to the quality of the final asphalt product.

Circular economy and waste diversion

Northstar consistently frames its business within the context of the circular economy and landfill diversion. The company’s stated mission is to lead the recovery and reprocessing of asphalt shingles in North America that would otherwise be sent to landfill. It positions its facilities as circular economy solutions that convert a landfill-bound waste stream into reusable, market-quality materials.

In connection with the Empower Calgary Facility, Northstar has described the project as an example of circular economy and industrial decarbonization in practice. The company has reported that the facility supports Calgary’s waste diversion goals by keeping construction materials out of landfills, and that its collaboration with municipal and industry partners provides a model for diverting asphalt shingles from municipal waste streams.

Feedstock supply arrangements

To support its operations, Northstar has disclosed several feedstock arrangements. The company has a contractual arrangement with The City of Calgary for the receipt and reprocessing of the City’s asphalt shingles at the Empower Calgary Facility. Under this contract, Northstar will receive shingles collected at multiple City waste management facilities for reprocessing. The company notes that this contract coincides with the relaunch of the City’s shingles recycling program and that volume targets and tipping fees are commercially confidential.

Northstar also references pre-existing supply agreements with IKO Industries Ltd. and Ecco Recycling & Energy Corporation to provide additional shingle feedstock to the Empower Calgary Facility. According to the company, these arrangements, together with the City of Calgary contract, provide more feedstock than required for the facility to operate on a single shift basis and process 40,000 tonnes per year.

Offtake and commercial relationships

On the product side, Northstar has announced an offtake relationship with McAsphalt Industries Ltd., a wholly owned subsidiary of Colas Canada Inc. The company reported the completion of its first sale of liquid asphalt to McAsphalt, describing this as its first revenue-generating transaction for liquid asphalt produced from waste shingles at the Empower Calgary Facility. Northstar has also referred to an offtake agreement under which it expects to generate ongoing commercial sales of liquid asphalt.

In the United States, Northstar has disclosed a strategic relationship with TAMKO Building Products LLC. The company states that TAMKO owns and operates an asphalt shingle production facility in Frederick, Maryland, and that TAMKO has agreed to purchase the majority of the asphalt product produced from the first four U.S. facilities constructed and operated by Northstar. Northstar links this relationship to its selection of Baltimore, Maryland as the location for its first planned U.S. commercial facility.

Planned U.S. expansion

Northstar has announced that it has entered into a non-binding agreement to secure a lease in Baltimore, Maryland for its first U.S. commercial facility. The site described by the company includes an existing building and additional land for outside storage and operational needs. Northstar has indicated that this location is expected to meet operational and strategic objectives, including avoiding the need to construct a new building, providing access to shingle supply, and aligning with economic return targets based on tipping fees and asphalt prices.

The company also notes that the Baltimore region is important for its strategic partner TAMKO, given TAMKO’s asphalt shingle production facility in Frederick, Maryland. Northstar has reported that it has initiated permitting activities for the Baltimore project, marking the start of the regulatory process required to advance the facility toward construction and commissioning.

Patents and intellectual property

Northstar emphasizes its patent portfolio as a key element of its business. The company has reported:

• An initial U.S. patent granted in November 2022 for aspects of its asphalt shingle reprocessing technology.
• Additional patents obtained in the United States and Canada, including a second Canadian patent for its proprietary asphalt reprocessing technology.
• A U.S. patent covering limestone recovery from asphalt shingles, expected by the company to remain in force until 2045.

Northstar states that these patents support its first-mover advantage in asphalt shingle reprocessing and that it continues to pursue further patent protection in multiple jurisdictions as operations progress.

Financing and capital support

Northstar has disclosed several financing arrangements and funding sources related to the development and ramp-up of its facilities. These include:

• A contribution agreement with Emissions Reduction Alberta (ERA), under which the company receives milestone-based funding linked to construction, commissioning and operational performance of the Empower Calgary Facility.
• A project loan facility from the Business Development Bank of Canada (BDC), which Northstar has drawn on to support facility development and which is expected to amortize over a multi-year period.
• A royalty debenture agreement with CVW CleanTech Inc., under which CVW provided funding through a convertible debenture that can convert into revenue royalties on two future facilities.
• Convertible debentures issued in several tranches, some of which have been converted into common shares, as well as non-brokered unit financings that include common shares and warrants.
• A non-binding letter of interest from Export Development Canada (EDC) for potential project financing support for Northstar’s first planned U.S. shingle reprocessing facility and, subject to conditions, potential support for additional U.S. facilities.

The company has also described shares-for-debt transactions in which interest payable on certain convertible debentures is satisfied through the issuance of common shares, and notes that some insiders participate in these transactions under applicable securities regulations.

Position within waste management and industrials sector

Within the waste management industry and broader industrials sector, Northstar presents itself as a company focused on converting a specific waste stream—discarded asphalt shingles—into reusable materials. Its disclosures highlight the combination of proprietary technology, patent protection, municipal and industrial supply relationships, and offtake agreements as the foundation of its business model.

The company’s communications emphasize the environmental and industrial aspects of its operations: diverting shingles from landfills, recovering materials for reuse in construction and roofing applications, and working with public and private partners to develop facilities that align with waste diversion and emissions reduction objectives.

ROOOF stock and listing

Northstar Clean Technologies Inc. trades on the TSX Venture Exchange under the symbol ROOF and on the OTCQB market in the United States under the symbol ROOOF. U.S. investors are directed by the company to obtain current financial disclosure and real-time Level 2 quotes through the OTC Markets platform. As with any publicly traded security, ROOOF shares reflect market views of the company’s progress in developing and operating its asphalt shingle reprocessing facilities and executing its waste-to-value strategy.

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