August 04, 2022 07:51 ET | Source: FuelPositive Corp. FuelPositive Corp.
TORONTO, Aug. 04, 2022 (GLOBE NEWSWIRE) -- FuelPositive Corporation (TSX.V: NHHH) (OTCQB: NHHHF) (“FuelPositive” or the “Company”) is pleased to announce it has begun validation of its onsite, containerized green ammonia production system, and on August 10, 2022, will begin accepting pre-sales. Additional critical milestones have been met in preparation for the launch of the Company’s first demonstration pilot project – including the hiring of key Operations team members and a move to the Company’s new lab/manufacturing facility.
“We are moving along quickly towards getting our first demonstration system onto the farm, and we’ve been realizing the tremendous benefits of having such an experienced and dedicated team to get us there,” said Ian Clifford, FuelPositive CEO and Board Chair. “Our company is growing rapidly – only a year ago, we set the groundwork for a successful business, and we now have a robust team of experts, advisors, multiple premises, respected partners, a patent-pending technology on the verge of being fully validated, and pre-sales starting up. It’s extremely gratifying to be achieving these milestones, doing what we said we would do to make a huge contribution to food security and positive environmental change around the world.”
Validation has begun, ahead of schedule. The original plan was to perform the validation when the entire system was completed. This plan still holds, but FuelPositive has implemented a process in which each component is individually tested as it is ready, which will drastically reduce the time required for final validation.
“This approach to validation is one way we are managing the global supply chain delays that we’ve experienced,” said FuelPositive Chief Operating Officer Nelson Leite. “Some of the parts and materials we have ordered are taking longer to get to us than estimated. With each delay, we assess the circumstances and determine how we can mitigate it, not only for the current demonstration system but to ensure we are prepared when we roll out more of our systems in the future. Mitigation strategies have included switching to new suppliers, validating at the supplier’s facility before shipping, buying off-the-shelf products that we modify, and increasing our staff sooner than planned so we can take on more of the work ourselves.”
“As a result, we are planning for validation to be fully completed by us in November 2022, rather than by late summer as we previously estimated. We are now saying “fall” 2022. After that, the two independent, third-party validations will follow quickly and at that point, we can move the system to the farm,” said Leite.
“I want to stress that our technology has progressed as planned, without any setbacks. These delays are associated with supply chain issues only. For instance, getting stainless steel for housings and flanges has changed from delivery in two days last November to 14 weeks today. This is just the way of the world right now, but we are experts at mitigating these kinds of circumstances and that’s why our timing is not being significantly affected,” added Leite.
“We have set our initial base price at CA$950,000 and expect the actual customer price to vary, as we customize the system to meet the particular requirements of each farm,” said Derek Boudreau, FuelPositive’s Strategic Advisor on Agricultural Implementation. “We arrived at that initial selling price after a great deal of research. The initial pricing will allow us to gain some momentum on deliveries to farmers, and once we realize scale efficiencies and move to serial manufacturing, our profitability will grow accordingly, while offering farmers savings compared to buying grey ammonia. The return on investment and payback period will vary according to the situation for each farmer. We will help them optimize that.”
To enter into a pre-sale arrangement, interested farmers will use a dedicated email address that will be published, beginning August 10, 2022, on a new “Pre-Sales” page of the Company’s website. The Company will reach out to each farmer to understand their specific situation and requirements. Each farmer will receive an individualized proposal from FuelPositive. A deposit will secure the farmer’s place in line.
The Company has made several key hires to build the team it needs to move into production mode as quickly as possible, in order to meet the high demand it expects.
The move to the new lab and manufacturing premises at 99 Northland in Waterloo, Ontario has begun, giving the expanded team the necessary space to do its work for the next year. Batch manufacturing will begin there.
In addition, a real estate partner and a site have been identified for the building of the Company’s first commercial manufacturing facility, which will be purpose-built for FuelPositive by the partner. It will initially provide up to 140,000 square feet and is expected to be ready for use in late 2023. Ordering of equipment for that site and designing of the robotics will begin when the new building breaks ground.
FuelPositive will hold a live webinar on Tuesday, August 9, 2022, at 2 p.m. ET, to provide stakeholders with a corporate update and answer questions.
FuelPositive is a Canadian technology company committed to providing commercially viable and sustainable, “cradle to cradle”, clean technology solutions, including an on-site, containerized green ammonia (NH3) production system for use across a broad spectrum of industries and applications. By focusing on technologies that are clean, sustainable and economically advantageous/realizable, the Company aims to change the course of climate change through practical solutions that can be implemented in the short term.
The FuelPositive containerized green ammonia production system produces pure, anhydrous ammonia for multiple applications, including fertilizer for farming, fuel for grain drying and internal combustion engines, a practical alternative for fuel cells and a solution for grid storage. Green ammonia is also considered a key enabler of the hydrogen economy.
FuelPositive systems are designed to provide for green ammonia production on-site, where it’s needed. This eliminates wildly fluctuating supply chains and offers end-users energy and supply security while cutting carbon emissions from the production process. The first customers will be farmers. Farmers use 80% of the traditional ammonia produced today as fertilizer.
Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
This news release contains certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) that are based on expectations, estimates and projections as of the date of this news release. The information in this release about future plans and objectives of the Company, including the expected expenditures of the proceeds of the private placement, are forward-looking statements.
These forward-looking statements are based on assumptions and estimates of management of the Company at the time they were made and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect.
Many of these uncertainties and contingencies can directly or indirectly affect and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Forward-looking information is provided for the purpose of providing information about management’s expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking information or to explain any material difference between subsequent actual events and such forward-looking information, except to the extent required by applicable law.
For Investor enquiries, please contact:
Ian Clifford Chief Executive Officer and Board Chair firstname.lastname@example.org www.fuelpositive.com
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