Xfuels Inc. reported that it has entered a letter of intent to purchase an incinerator plant and will be converting the plant into a Waste/Biomass to Combined Heat and Power solution. The plant located in Bieseker, Alberta is currently set up as a medical waste incinerator. Cycle will utilize both in house and licensed technologies to retrofit the incinerator to a gasifier unit to produce a Combined Heat and Power solution as well as Waste Heat to Cold Storage to serve the local farming community.

The purchase price of the 18,678 square foot building, equipment and associated 3.78 acres is CAD 2,000,000. Xfuels will make a down payment of CAD 500,000 and the vendor will carry the balance of CAD 1,500,000 for the term of 5 years at a rate of 3.5% with a payment holiday for the first 18 months. The deal is scheduled to close on or before June 1st, 2021.

In the interim, Xfuels has assumed the overhead expenses of the plant and begun the engineering of the incinerator retrofit onsite. The retrofitted plant will produce approximately 2MW of electrical power production with room for expansion of further phases as well as process heat. The plants service is capable of 6MW back into the grid.

Xfuels also plans to build greenhouses on the adjacent 2.8 Acre lot. The company intends to utilize the greenhouses for Algae Production using the company's Bioreactor Technology as well as commercial and community green house space. The site will also be evaluated for Blue-Green Hydrogen and Gas to Liquids production should there be enough resources as well as receiving the appropriate local and provincial permitting.

The Cycle Hydrocarbon Technologies Blue Hydrogen solution has been developed as a mobile platform for use in the field on underperforming and/or stranded assets. It is the company's intent to further develop the technology into a larger stationary unit once we roll out the current platform.