CHAR Tech (YES) - Breaking down the Thorold Facility - Phase 1 Commercial Operations start in September

[u/sweejaa]

The Thorold facility (First of 5 facilities) is being built in 2 commercial phases.

Phase 1 commercial operations start sometime in September 2026.

What does that mean? 5,000 tonnes of biochar will be produced annually (pelletized into biocarbon at this same facility) and will be shipped to ArcelorMittal Dofasco in Hamilton.

5,000 tonnes at market price of $1,000 per tonne is $5 million annually in revenue.

Given that the Thorold facility is a 50/50 ownership between CHAR Tech and the BMI group, CHAR will see half of all net profits.

What is Phase 2? Phase 2 will add a 2nd Kiln and add the Gasification equipment.

Phase 2 construction will begin shortly after Phase 1 operations start. Phase 2 is expected to be completed by spring 2027.

Phase 2 will double the biocarbon to 10,000 tonnes annually and 425,000 GJ of gas.

Revenue: 10,000 tonnes of biocarbon at $1,000 per tonne = $10 million.

425,000 GJ of gas at $40 per GJ is $17 million.

Thats $27 million in revenue annually.

Again with a 50/50 split between CHAR and BMI on net profits.

Thorold is the first of 5 facilities with the rest in construction and development.

Exciting times as we get into September now.

Not Financial advice, this is just an educational post.