Kamloops, September 22, 2022 – Progressive Planet Solutions Inc. (TSXV: PLAN) (“PLAN”, “Progressive Planet” or the “Company”), a dominant manufacturer of agricultural, household and industrial products whose pioneering blue-sky technology turns post-consumer glass into high-performance cement using CO2sequestration, is pleased to announce the commencing of low-carbon cement field trials and Ag-Tech plant construction.
Commencing Field Trials
Earlier this month, PLAN received and commissioned a custom-designed batch ball mill ordered in January 2022. In the past, PLAN could only produce lab scale quantities of 100 grams per day. The new mill allows PLAN to produce 500kg of material per day, which is ample quantity for field trials in both the cement and agriculture industries.
Immediately upon receiving this mill, PLAN produced and dropped off 500kg of PozGlass™ SCM, PozDE™ SCM, and PozZeo™ SCM samples requested by three companies in Calgary. PozZeo SCM is a zeolite-based SCM designed for the magnesium cement industry.
Early Field Trial Results
ZS2 Technologies Ltd. (“ZS2”), one of the three companies provided samples, shared 7-day test results for a 33 weight-percent incorporation of PozGlass SCM and PozZeo SCM samples into their magnesium-based cement showing more than twice the required structural capacity of Portland cement.
“Progressive Planet has provided us a circular economy solution, a post-consumer glass product currently bound for landfill, and it has shown considerable strength benefits in our waste-to-cement products,” said Dr. Doug Brown, CTO of ZS2. “We are excited by the potential to further lower ZS2’s cement carbon footprint by being an early adopter in the commercialization of PozGlass SCM. If lab results scale, we anticipate requirements in excess of several thousand tonnes in our Phase I plant’s first year of operation with Phase II deployment expected to exceed 20 thousand tonnes annually of PozGlass SCM.”
Actions To Enhance Gross Margins
A strategic implementation is underway to materially enhance gross margins showing progress to actions highlighted in the Management’s Discussion & Analysis For the Year Ended April 30, 2022 published on August 29, 2022 (the “MD&A”) filed on the SEDAR website: www.sedar.com.
At the date of acquisition, Progressive Planet Products Inc. (“PPP”) had 420 stock-keeping units (“SKUs”). As referenced in the MD&A, PLAN began an immediate analysis of all SKUs to reduce costs associated with frequent manufacturing line change-overs while recognizing that over 75% of sales come from just 30 SKUs. To date, PPP has achieved a 33% reduction in active SKUs and will continue this strategic consolidation with updates to follow.
Ag-Tech Plant Construction
As referenced in the MD&A, PLAN intends to process low-carbon cements and regenerative fertilizers in a separate building to the legacy operations, which would increase processing output while utilizing existing team members and equipment where possible. The expansion within existing space is made possible because of steps taken to optimize warehouse space as described in the MD&A. Construction of the standalone Ag-Tech plant is underway with the first line expected to be operational making regenerative fertilizer powders by October 17, 2022.
“PLAN operates a business that sells innovative products to customers in every province and every state,” says Steve Harpur, CEO of PLAN. “With a mandate to grow, we are committed to co-producing fertilizers and cements while maintaining our legacy business.”
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the matters described herein. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release.