Earlier last month, Cielo Waste Solutions (TSXV:CMC) announced Project Nexus, a strategic realignment that reflects a company shaped by experience and focused on delivering the future of renewable fuels.
Joining us today is Ryan Jackson, CEO of Cielo Waste Solutions, to talk about everything Cielo and Project Nexus.
Ricki: Let’s start with Project Nexus. You’ve described it as a strategic realignment for Cielo. What does that mean in practical terms and how does Nexus change how Cielo moves forward?
Ryan: Well, thanks for the question around the realignment because it’s important for us to understand and let our listeners or viewers know that Cielo’s true north star has always been solutions for waste. And what has happened in the past is the waste streams that we have acquired over the course of the last number of years, such as used railway ties or scrap railway ties, was always being reverse engineered back into the technology that was available or that Cielo had developed. And what we found with respect to that was a disconnect in the efficiency of that technology versus being able to essentially then provide that solution for the waste in the most profitable and efficient manner that we could. And so, by moving into the Northern BC project that is Project Nexus, we are now able to provide an agnostic solution technologically to the waste of scrap railway ties. And by virtue of that, an output of renewable fuels to the market that is real world and usable for today’s purposes.
Ricki: Okay. And you’ve spoken candidly about Cielo’s past challenges. What have been the key lessons from those experiences and how are they shaping the approach to execution under Nexus now?
Ryan: I think the biggest thing, and I mentioned it, I touched on it just a moment ago, was that we have now the benefit of going through the adjudication of technology and the development of such that we’ve learned that we are really strong at project development and business development. And we’ll let the technological experts and the current technology of the day and into the future do its thing and we marry the two and we’re really good at that and we’ve learned what we’re not good at, and that’s developing a technology, but rather a project in its place.
Ricki: Okay, thank you for that. And in terms of struggles that you mentioned there, many renewable fuel ventures have struggled to scale beyond pilot projects. So, what gives you confidence that Cielo’s technology platform and partnerships can deliver at commercial scale?
Ryan: Well, you just mentioned it, we actually don’t have a technological platform that we own and develop. We are acquiring mature technologies to initiate that process with the waste stream that we currently have. So, in the case of the scrap railway ties, we have the ability to execute on not just the financial piece, but also on the operational piece because we’re not still in a pilot phase. This is not a pilot project. This is a full-blown commercial project. And the reason why it can be that is because it isn’t a pilot proving a technology. We’re using proven technologies to essentially move forward and develop that base case business.
Ricki: The Nexus initiative seems to have strong support from both municipal and local stakeholders. Why are those relationships so important to Cielo’s model and how do they shape the project’s long-term success?
Ryan: I think you can break it down into the mandates that exist currently at the federal level through the clean fuels regulations, but also the northern BC or the BC regulations in particular are such that it really did guide us to move the project that we have into the British Columbia jurisdiction. That alone, along with the strong municipality that we are just about to announce here in the future, will really guide the success of the project because everyone across both municipal, provincial, and federal jurisdictions all now have the same goal, which is to have Cielo or whomever produce a clean fuel or a renewable product that allows us to address problematic waste streams in the environment.
Ricki: So, looking ahead then, what are the key milestones that you and your team are focused on over the next year?
Ryan: Well, the project that we’ve announced just a few weeks ago really is the start of the development that we are doing. And we only announced this in April of this year. So, over the course of the last five, six months, we’ve actually moved from what we plan on doing to actually doing it. So, the milestones that we look to are going to be announced very shortly. We are coming up to some critical pieces and critical milestones here in the next month that will allow us to provide a significant amount of information to our shareholders and investors around what that looks like. For now, Project Nexus is being developed, and we will be able to provide some updates. So, I’ll come back, and I’ll speak more to that in the future.
Ricki: Amazing. We look forward to it. And so, for investors who have followed Cielo through its ups and downs, what message do you want them to take away about why Project Nexus represents a real turning point?
Ryan: It is a turning point, and I think that the thing that in our investors, and they’re a patient group and we have a lot of investors, we have over 15,000 shareholders rather. And what I speak to, I speak to shareholders every day, and the main message that I continue to portray to them is that this is something that takes time. But at the same time, we’ve learned from our mistakes to my earlier point, and we know now what we don’t know, and that’s critical for us to be able to develop Project Nexus. So, the shareholders that are still in the stock have been very patient. I’m personally invested in this as well. So, there’s a lot of forward momentum that we have now given that everything has aligned and the feedstock we have is secure and we’re going to be moving forward.
Ricki: Well, Ryan, thank you so much for joining us today and sharing the latest on Cielo Waste.
Ryan: My pleasure. Thanks for having me.
For more information, you can visit the company’s website at cielows.com.
I’m Ricki Lee, and this has been The Capital Compass. Thanks for listening, and we’ll see you next time.
This article is disseminated in partnership with Cielo Waste Solutions (TSXV:CMC). It is intended to inform investors and should not be taken as a recommendation or financial advice. Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
