Cielo Waste Solutions Corp. provided an operations update on the company's Aldersyde renewable diesel refinery. The Refinery continues to operate under a two-step process, step 1 being the conversion of the biomass (waste/sawdust) into a distillate and step 2 being the conversion of the distillate into renewable naphtha, kerosene and high-grade diesel. To date, Cielo has produced approximately 50,000 litres of renewable fuels from the wood waste feedstock that is currently being held in tanks on-site. Currently, Cielo is planning to sell a portion of the fuels that contain the sulfur to some interested parties as well as to retain some product in inventory until it has been desulfurized, after which the products will be sold. In its December 2018 operations update, Cielo disclosed its focus on the heater system and the desulfurization process as the final steps main steps to completing the commissioning process. Heater System: In order to run the Refinery on a continuous flow basis, and not in a two-step process, Cielo needs to be able to generate and maintain more heat throughout the cracking towers and ancillary equipment, which Cielo originally planned would be achieved by purchasing and installing a second boiler and re-engineering the existing boiler. However, Cielo's internal engineering and design team analyzed and determined that it would be substantially more effective and efficient to move from a hot oil boiler to electric heat. Cielo's engineering team believes that electric heat has many advantages, some of which include much higher temperatures, less capex to purchase, ease of operations and precise temperature controls. The higher temperatures allow Cielo to substantially increase the biomass percentage, which will also increase production, hydrogen & renewable content, increase centane and greatly reduce the sulfur content. In order to streamline and optimize the design changes, Cielo has reached out to three third-party engineering firms to review and provide insight on the design and viability of the Refinery using this new heating method. Cielo is awaiting feedback from two of the firms but has received positive feedback from first of the firms to respond, which has suggested minor tweaks to the design, which are now being implemented. This firm has advised that it sees similar advantages of using electric heat over the hot oil boiler system, in line with Cielo's internal engineering team analysis. Cielo believes these changes, once implemented, have the potential to significantly increase its margins. Desulfurization: After conducting extensive due diligence, Cielo is confident it is ready to select the desulfurization technology and the supplier of the equipment that Cielo will be using going forward. In anticipation of the higher temperature and increased biomass content expected to occur with the new heater system, Cielo has provided a lab sample of renewable kerosene and diesel from their own bench scale model, that were refined utilizing the higher temperature and increased biomass content and has been sent to the technology supplier to conduct tests so that they can reconfigure and optimize their modular demonstration plant to work on Cielo's fuels. It is anticipated that the demo plant will be shipped from USA to the Refinery within the next three to four weeks, at which time it will immediately be integrated into the Refinery so that Cielo can remove the sulfur from its inventoried fuels. The supplier of the desulphurization equipment has confirmed that their equipment can be scaled-up easily.