Plascred receives term sheet for $8.5-million financing

Executive Summary

• Plascred Circular Innovations Inc. has received a non-binding term sheet from the Business Development Bank of Canada (BDC) for up to $8.5 million in senior debt financing.
• This debt facility builds upon existing non-dilutive grants, including a $5.0 million grant from Emissions Reduction Alberta (ERA) and $500,000 from Alberta Innovates, covering more than half of the $25 million total capital package required for the Neos commercial facility.
• The Neos facility, located at CN Rail’s Scotford Yard, is designed to process 100 metric tonnes of postconsumer plastic waste daily into 500 barrels of renewable green condensate, with construction targeted to begin in Q1 2026 and commissioning later in 2026.

Key Details

• Financing Structure:
  • BDC Debt: Non-binding term sheet for up to $8.5 million in senior debt.
  • ERA Grant: $5.0 million non-dilutive grant dedicated to the construction of the Neos facility.
  • Alberta Innovates: $500,000 in research and development funding for the dual-catalytic pyrolysis platform.
  • Total Capital Package: Approximately $25 million for the Neos facility; equity discussions are ongoing.
• Neos Facility Specifications:
  • Capacity: Processes ~100 metric tonnes of postconsumer plastic waste per day.
  • Output: 500 barrels of renewable green condensate (low-sulphur, low-carbon circular naphtha) per day.
  • Location: CN Rail’s Scotford Yard, Fort Saskatchewan.
  • Environmental Impact: Diverts ~36,500 tonnes of plastic waste annually; avoids 51,000 tonnes of CO2 equivalent emissions through life cycle displacement.
  • Technology: Built on 24+ months of pilot-scale operations at the Primus unit in Calgary; integrates Palantir Foundry AI for real-time data, traceability, and digital twin operations.
• Commercial Terms:
  • Offtake Agreement: Five-year contract with a Global Commodities Company.
  • Price: $120 per barrel, inclusive of freight.
• Timeline:
  • Construction Start: Targeted for Q1 2026 (subject to finalizing financing).
  • Commissioning: Expected later in 2026.
• Future Expansion (Maximus Platform):
  • Design: Modular expansion capability launching at 400 tonnes/day (2,000 barrels/day condensate) and scaling up to 2,000 tonnes/day (10,000 barrels/day condensate).
  • Strategy: Co-located with Neos to leverage existing infrastructure, rail logistics, and shared site services.
• Execution Partners:
  • Engineering: Grey Owl Engineering Ltd.
  • Fabrication: Alberta-based vendors.
  • Strategic Partners: CN Rail, Palantir Technologies Inc., Government of Alberta, Fibreco Export Inc., and a global commodity company.

Notable Quotes

• "This proposed financing represents a critical step toward realizing Alberta's circular plastics economy. We're pleased to work with BDC to structure a capital-efficient package alongside our ERA support. These combined supports position Plascred to advance the development of a fully integrated, low-carbon circular solution for plastic waste." — Troy Lupul, President and CEO