- Sky Quarry (SKYQ, Financial) has signed a non-binding Letter of Intent with R & R Solutions to potentially recycle 100,000 tons of asphalt shingle waste annually in New Mexico.
- The project aims to produce high-value byproducts and could yield up to 150,000 barrels of oil when fully refined.
- This partnership is expected to optimize operations by utilizing existing infrastructure, reducing capital needs, and improving logistics with Sky Quarry's facility in Utah.
Sky Quarry Inc. (NASDAQ: SKYQ), an integrated energy solutions company, has announced the signing of a non-binding Letter of Intent (LOI) with R & R Solutions, the sole permitted asphalt shingle recycler in New Mexico. This strategic partnership is intended to leverage Sky Quarry’s technology at R & R's Albuquerque site, with plans to process approximately 100,000 tons of asphalt shingle waste annually. The processed material is projected to produce various high-value byproducts, including asphalt-coated limestone, sand, granules, bitumen, and structural-grade ground shingles for use in infrastructure applications.
The anticipated output from this process includes an estimated 150,000 barrels of oil when fully refined, presenting dual revenue opportunities for Sky Quarry through waste acceptance fees and the sale of recovered materials. The strategic proximity of the R & R Solutions site to Sky Quarry’s PR Spring facility in Utah is expected to create a regional operational hub. This geographic synergy is designed to enhance logistical efficiency by facilitating the transport of high-value hydrocarbon products to Utah while enabling local distribution of bulkier byproducts such as limestone and sand.
Sky Quarry's CEO, David Sealock, emphasized the potential advantages of this collaboration, highlighting the capital-efficient expansion strategy by utilizing existing permitted infrastructure. This approach aims to accelerate time-to-revenue while maintaining financial agility. The non-binding nature of the LOI, however, indicates this is an exploratory phase, with final agreements and specific financial details yet to be determined.
