The company on Thursday announced that a customer had agreed to buy 80 tonnes of its liquid asphalt product. Northstar creates it by repurposing roofing shingles at a facility near Vancouver. It owns a proprietary design process for repurposing used roofing shingles it calls Bitumen Extraction and Separation Technology (“BEST”) .
CEO Aidan Mills described the purchase order as a “major milestone”.
“As I have previously mentioned, there are three industrial sectors that we are targeting: paving, shingle manufacturing, and flat roofing systems. We are therefore delighted that having completed the first stage of analysis on Northstar’s liquid asphalt, this Customer, a major international roofing systems manufacturer, is moving to the next stage of product manufacturing and advanced testing, “Mills said. “If successful, we expect to establish a long-term multi-year off-take agreement for the Empower Pilot Facility with the potential to extend our supply for further facilities as we deploy our proprietary technology in markets across North America. We continue to focus on building our relationships with sophisticated buyers who will use our reprocessed liquid asphalt across Canada and internationally. We expect to deliver the Product to the Customer in Q4 2022. This is the first sale of liquid asphalt by Northstar, which is an important step for the Company and validates the quality and demand for our liquid asphalt outputs. In addition, and importantly, this is also the first revenue generation for Northstar, another element of this major milestone.”
How big is the market for ROOF? One analyst thinks it’s huge.
In July, Eight Capital analyst Sean Keaney said the company had a “considerable head start” in a total addressable market for asphalt shingles that he estimated at US$1.35 billion in Canada and US$7 billion in the United States.
Northstar, which was founded in 2015, began trading in July of 2021 through a $12.2-million go-public financing.
Disclosure: ROOF is an annual sponsor of Cantech Letter
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