Don Allan insists he is not in the garbage business. But his company, CieloCorp, could make a serious dent in the growing mountains of waste headed to landfills – if its tech for turning refuse into fuel for trucks and planes goes according to plan.
Gavin John/The Globe and MailBut his company, Cielo Waste Solutions Corp., could make a serious dent in the growing mountains of waste headed to landfills – that is, if its technology for turning refuse into fuel for trucks and planes goes according to plan.
“We’ve been running this now for two years. We’re building 10 more of these facilities right away – and we’re actually looking to build 40 over the next five to seven years throughout North America,” he said. Cielo is not alone in seeking a silver bullet – others have tried transforming waste into high-quality fuel, and many have failed. Western Biodiesel, which once occupied the site where Cielo’s facility sits, sought to process beef tallow into fuel more than a decade ago, but was unable to make a go of it.
The unique technology was developed in Germany, and Mr. Allan imported the initial demonstration equipment to Red Deer, and then moved it to Aldersyde, across the road from a Cargill meat-packing plant, where it has been adding, testing and tweaking equipment. The company says it has a similar production cost as traditional biodiesel, but the feedstock costs are just a fraction of that. As a result, in Alberta, biodiesel would have to sell for a loss, based on current prices, where the Cielo production has a gross margin of 67 per cent. It has a sales agreement with Elbow River Marketing, a unit of Parkland Corp.
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