Cielo signs partnership deal with Tano T'enneh

Executive Summary

• Cielo Waste Solutions Corp. entered into a non-binding Strategic Partnership Framework Agreement (SPFA) with Tano T'enneh Enterprises (TTE), a wholly owned enterprise of the Lheidli T'enneh Nation, to advance "Project Nexus," a proposed sustainable aviation fuel (SAF) facility in British Columbia.
• The partnership structure provides for majority indigenous ownership, with TTE holding up to 51% of the units in a new limited partnership (Project LP), while Cielo holds the balance.
• The project aims to leverage various financing mechanisms, including B.C. Low Carbon Fuel Standard incentives, indigenous loan guarantees, and federal funding, with Cielo leading technical/commercial workstreams and TTE providing land access and community relations.

Key Details

• Parties: Cielo Waste Solutions Corp. and Tano T'enneh Enterprises (TTE), a wholly owned enterprise of the Lheidli T'enneh Nation.
• Agreement Type: Non-binding Strategic Partnership Framework Agreement (SPFA) dated March 14, 2026.
• Project: "Project Nexus," a sustainable aviation fuel facility proposed for development on land to be acquired by TTE within Lheidli T'enneh Nation territory in British Columbia.
• Ownership Structure:
  • Project to be owned/financed through a limited partnership (Project LP).
  • TTE to hold up to 51% of Project LP units (majority indigenous ownership).
  • Cielo (and potential third-party limited partners) to hold the remaining balance.
  • A general partner with representation from both parties is intended to operate the Project LP.
• Financing Framework:
  • Potential sources include B.C. Low Carbon Fuel Standard (LCFS) incentives, indigenous loan guarantee programs, Canada Infrastructure Bank financing, Clean Fuels Fund funding, and investment tax credits.
  • Cielo’s equity contribution may be partially recoverable through future LCFS credit allocations to reduce upfront capital requirements.
  • Final terms subject to definitive agreements, lender requirements, and program eligibility.
• Roles and Responsibilities:
  • Cielo: Lead technical and commercial workstreams, including feasibility, pre-FEED/FEED engineering, permitting, technology integration, EPC oversight, B.C. LCFS initiative agreement submissions, and operational readiness.
  • TTE: Contribute land access, government and community relations, indigenous financing pathways, workforce development, and environmental stewardship.
• Next Steps: Negotiation and execution of definitive agreements regarding land tenure and Project LP governance, with the goal of advancing Project Nexus through feasibility toward a Final Investment Decision (FID).
• Conditions & Restrictions: The SPFA is non-binding (except for confidentiality). Cielo retains the right to pursue Project Nexus elsewhere if definitive agreements are not executed or if the project does not proceed with TTE/Lheidli T'enneh Nation. Project remains subject to feasibility results, financing, and regulatory approvals.

Notable Quotes

• Ryan C. Jackson, CEO of Cielo: "We are pleased to be working with TTE toward a sustainable aviation fuel facility in British Columbia. Majority indigenous ownership is a foundational principle of this partnership, and we look forward to advancing the project through the next stages of development."
• Evan Salter, CEO of Tano T'enneh Enterprises: "From our very first conversation with Cielo, it was clear this was a different kind of partnership -- one built on genuine respect, shared values and a commitment to long-term benefit for our nation. This project has the potential to create real jobs, real revenue and a lasting legacy for Lheidli T'enneh. We are excited to get to work."