The idea for Sky Quarry really took root during my time at Petroleum Technology Alliance Canada (PTAC). I received a portfolio to review for a company eager to reduce NOx (nitrous oxide) and SOx (sulfur oxide) emissions. Their main idea was to move away from old, inefficient, water-based systems of extracting oil. Other international companies were already starting to go that route, so we took a long look at how technology could be used to increase efficiency and reduce environmental impact.
By evaluating existing technologies and integrating more advanced solutions to reduce costs and boost production, we saw an opportunity to improve the current Clark hot water system, which required a large amount of water to be mixed with the oil before it could convert into steam and form an emulsion. In contrast, our solvent process operates at a lower temperature threshold, uses very little water and is far more efficient, allowing us to separate the solvents from the oil more easily without the need for massive water purification systems.
As we continued to delve deeper into our research, we learned about advancements being made in Utah and throughout the country. This led us to an opportunity with 2020 Resources, a private energy company focused on environmentally sustainable oil production. They owned the PR Spring Facility in Utah, a 2,000-barrel-per-day extraction facility on 6,000 acres of land with an estimated 180 million barrels of oil. The company approached Sky Quarry to explore the possibility of implementing our technology at the facility. Because the location was ideal and the operations were sound, it merited a closer look.
We immediately saw the facility’s incredible potential. Despite the challenges presented by the volatile oil market in 2020 — when COVID-19 had begun and oil prices had dropped to an all-time low of $12-$13 a barrel — we purchased it for just $3.5 million, a fraction of its original $54 million construction cost.
What 2020 Resources failed to recognize was the transformative potential of waste-to-energy technology and its potential long-term benefits for the world. However, this became an advantage for us. While we were fortunate to be in the right place at the right time, I believe it was our hard work, deep experience and the collective synergy of our team that came together when the opportunity to purchase PR Spring arose. This pivotal moment ultimately led to the founding of Sky Quarry.
Building a blueprint
By acquiring an existing facility, we avoided the substantial costs of building a new structure from the ground up. However, PR Spring still requires retrofitting to implement our process effectively. We are currently investing $7 million in these upgrades, and once operational, the facility is expected to process oxidized waste asphalt shingles and blend the resulting oil with virgin oil to meet market demand. With a capacity to produce up to 2,000 barrels of oil per day, it will also enable the production of valuable products, including diesel fuel, kerosene, vacuum gas oil and asphalt paving liquid.
Our goal is to establish multiple facilities like this, which — while addressing only a fraction of the annual waste currently sent to landfills — will represent a meaningful step forward in overcoming the challenges of waste management and sustainable energy production.
“Utah stands out as a leader in planning for its future, particularly in the oil, gas and mining sectors. The state is eager to expand its hydrocarbon, waste management and recycling portfolios, making it an ideal partner in our mission to pioneer sustainable waste-to-energy solutions.”
The purchase of PR Spring marked a pivotal moment in our journey, setting the stage for further expansion and advancing our mission. In 2022, we acquired the Foreland Refining Corporation, a Nevada-based refinery that processes raw crude for a purchase price of $7.5 million. This is a strategic investment that we believe will enhance our ability to recycle and refine waste oil. In 2022 and 2023, the Foreland Refinery processed 40,000 barrels of oil per month, roughly half a million barrels annually. Once our extraction facility retrofit at PR Spring is complete, we expect those numbers to grow significantly.
With these two facilities and our recycling technology enabling us to produce highly sought-after green fuels, including crude and green diesel, we are establishing a blueprint for other refineries to follow and enabling similar systems to be developed across the United States. Refineries will recognize the cost-effectiveness and benefits of adopting this approach, including gaining sustainability credits. By driving these changes, the entire industry moves closer to embracing green and clean technology, and Sky Quarry is proud to be at the forefront.
Turning waste into opportunity
For the past two years, the Environmental Protection Agency has emphasized the urgent need to control and process municipal waste, including construction debris and asphalt shingles, as landfills continue to dwindle. Each year, approximately 15 million tons of asphalt shingles are discarded in landfills, underscoring the scale of this growing challenge.
We believe our technology can play a key role in addressing this issue. Our goal is to recycle this waste and convert it into sustainably produced oil and other valuable products, such as sand, granules, limestone and fiberglass. Every ton of discarded shingles yields one and a half barrels of oil. The remaining 1,500 pounds of recovered materials can then be sold back into the market, so nothing goes to waste.
Additionally, our job is to ensure a way forward that involves recycling and repurposing. By blending waste energy with nonconventional energy, we can enhance production volumes. The goal is for 10-20 percent of our oil production to contain waste asphalt shingle oil. By 2027, we aim to grow that percentage to 30 percent. By 2030, we aim to achieve oil consisting of 50 percent sustainable waste energy in our production.
It’s also no coincidence that Utah is at the heart of our operations. When we took a look at states that were being proactive in what they wanted to do, Utah was the clear leader. From an entrepreneurial standpoint, Utah stands out as a leader in planning for its future, particularly in the oil, gas and mining sectors. The state is eager to expand its hydrocarbon, waste management and recycling portfolios, making it an ideal partner in our mission to pioneer sustainable waste-to-energy solutions.
Extending beyond oil
As we refine and scale our process, our plan extends beyond oil production. The integration of our recycled materials into industries such as construction, road paving and even renewable energy sources underscores our commitment to a circular economy. For example, granules and sand recovered from shingles can be repurposed into high-quality construction materials, reducing the demand for newly mined resources. Similarly, recycled fiberglass from shingles has potential applications in the production of lightweight, durable composites for various industries, including automotive and aerospace.
We’re in talks with roofing and waste management companies, as well as shingle manufacturers, to explore new opportunities. For the last two years, we’ve been focused on
building strong relationships within these industries to better understand their needs and challenges. Our goal is to drive efficiencies across the entire value chain, from production to recycling, and ensure that our efforts are aligned with industry trends and regulatory advancements. These partnerships are critical as we continue to scale our impact and offer eco-friendly alternatives for the construction and roofing sectors.
Additionally, for us, everything comes back to the quality of the products we produce. To remain competitive, we must deliver the highest-quality products and ones that consistently exceed industry expectations.
A company built for the 21st century
If you are looking for a company that will move into the 21st century, we believe there’s a tremendous opportunity for companies like ours to provide a modern, circular economy approach that minimizes waste, unlike past practices.
At Sky Quarry, we feel we have a responsibility to ensure that everybody has access to energy, and I believe that technology is the catalyst — the element that changes everything. Looking back 50 years at primary oil production, the process was simple: locate an area and extract hydrocarbons using a pump jack. As technology evolved, new methods like solvent injection were introduced, leading to primary, secondary and tertiary recovery techniques.
And if you look at the Canadian market and what it has done with oil and gas operations and what the United States has done around energy operations, you’ll see that our company is setting the global pace for the future by proving that oil production can be coordinated in a greener, cleaner way.
By working in a more efficient and environmentally clean way to extract the products needed, we can be energy self-sufficient on this continent. The goal is zero waste reduction, utilizing all to feed the economy so nothing is left: no waste, no debris, no landfills.
A brighter future within reach
Founded in 2019, Sky Quarry achieved a major milestone by being listed on Nasdaq within just five years. However, success doesn’t happen overnight; it’s about steady, deliberate progress. Achievements like these take time and investment, and they require the ability to have all the right people in the right places at the right time. By involving everyone, you don’t have to go from 0 to 100.
The concept of converting millions of tons of waste asphalt shingles into sustainable oil is more than just a technological advancement; it’s a critical step toward preserving life on our planet. I believe what we’re building goes beyond ourselves — it’s about creating a lasting, positive impact for generations to come.
It’s a full-time job, but it’s results-oriented. We take a step-by-step approach, making sure not to take on too much at once. Our focus is on quantifying and qualifying as much as we can while carefully reaching milestones that will create value for the company. We believe success starts with strong fundamentals that ensure long-term sustainability, and once you understand the process and the potential of what the technology can do, the key is to work toward 20 percent of that final goal and build from there.
We were fortunate in many ways. In 2019, we charted a clear trajectory, and so far, it’s proving to be the right path. I’ll confidently say it’s working out very well. Everything this company does is designed to elevate our industry and contribute to a healthier planet. I firmly believe that a brighter, more sustainable future is within our reach.
