MOROCCO – Agadir-based recycling company, Clean-Seas Morocco (CSM) has entered into a feedstock supply contract with Clean Oceans 2, a global leader in waste management.
The agreement provides for the delivery of waste plastic (feedstock) from Clean Oceans 2 to CSM’s facility in Agadir, Morocco at no cost to CSM.
With a maximum deliverable amount of up to 1,000,000 metric tonnes of feedstock per year, CSM has secured its supply of feedstock for the Morocco facility, a critical component needed for CSM to expand its Plastic Conversion Network (“PCN”), a patent-pending software network connecting sources of feedstock, conversion facilities throughout Morocco.
The current operational facility in Agadir operates at 20 tonnes per day (TPD) capacity and is expected to expand operations to 120 TPD by the end of 2023.
The Company currently believes it can reach 500 TPD capacity by 2025. The feedstock, sourced from the European Union, will be delivered to CSM in full compliance with the Basel Convention.
Dan Bates, the Chief Executive Officer of Clean Vision said: “Securing this volume of feedstock is key to the Clean-Seas plan for its PCN expansion in North Africa and will allow us to pursue and secure off-take agreements.
“Locking down our feedstock supply chain is a huge step forward in executing our business plan and accelerating the currently planned expansion of our portfolio.
“This contract allows us to offer a risk-mitigated, financing opportunity for our debt providers with the hope of leading to non-dilutive capital sources, which we see as adding value for our shareholders, in order to rapidly expand the Company’s portfolio.”
The Company has previously stated that it expects its standard 100 TPD pyrolysis line, operating at 300 days per year, will convert 30,000 mTons of plastic feedstock annually, which it estimates will generate up to US$12 million in gross annual revenue.
The Company estimates that it will need greater than 30 – 100 TPD lines to process the full 1,000,000 mTons of feedstock deliverable to CSM, resulting in an estimated US$360 million in gross revenue annually.
In addition, CSM expects this revenue will be generated by producing low sulphur pyrolysis oils from plastic feedstock, which it intends to sell to multinational petrochemical companies for delivery into the plastic circular economy.
While additional machinery, capital and off-take agreements are necessary to reach these estimates, securing the feedstock supply from Clean Oceans 2 is a huge step forward in executing on these plans.
“As Clean-Seas expands its PCN around the world, it is crucial to secure the raw materials needed for the facility’s long-term operations and success,” added Dan Harris, the Chief Executive Officer of Clean-Seas Morocco.
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