TIDEWATER RENEWABLES LTD. CONTINUES TO REDUCE EXECUTION RISK WITH A SECOND FORWARD SALE OF ITS CARBON CREDITS AT PREMIUM VALUES, AND BY ADVANCING ITS FEEDSTOCK STRATEGY WITH THE ACQUISITION OF A USED COOKING OIL SUPPLIER

CALGARY, AB, Jan. 10, 2022 /CNW/ - Tidewater Renewables Ltd. ("Tidewater Renewables" or the "Corporation") (TSX: LCFS) is pleased to announce a second sale agreement with a second investment-grade company to sell British Columbia Low Carbon Fuel Standard ("BC LCFS") credits at an average price of $478 per credit that it will receive through the construction of the Renewable Diesel & Renewable Hydrogen Complex at Prince George, BC (the "Complex"), at values higher than previously budgeted. Tidewater Renewables is also pleased to announce that it recently closed a strategic acquisition of a used cooking oil supplier (the "Acquisition"), providing certain feedstock supply for a portion of the renewable fuels production from the Complex. 

Premium Value BC LCFS Credit Sale

Tidewater Renewables has agreed to sell a total of 25,000 BC LCFS credits at an average price of $478 per credit, as compared to the first disclosed sale at $425 per credit and the previously disclosed budgeted value of $375 per credit for credits to be received under the Renewable Diesel ‎Project Part 3 Agreement with the British Columbia Government. This agreement to sell credits extends to March 2023 and further reduces the value realization risk on a portion of the BC LCFS credits that Tidewater Renewables will receive, realizing total proceeds of over $11.9 million over the term of this agreement.

With this transaction Tidewater Renewables has now agreed to sales for over 50% of credits to be received by the commissioning of the Complex expected in the first quarter of 2023. The Corporation continues to work on other potential multi-year agreements to monetize further credits that it will receive from the construction and operation of the Complex, from its Canola Co-Processing Facility, and from other projects. 

Local Feedstock Supply Acquisition

Tidewater Renewables has recently closed the acquisition of a used cooking oil supplier for total consideration of $3.5 million, consisting of cash and common shares of Tidewater Renewables.  The acquisition is aligned with Tidewater Renewables' feedstock strategy of growing its portfolio of discounted feedstocks, particularly those with a low carbon intensity advantage, such as used cooking oil. The acquired supplier is an established Alberta based used cooking oil supplier with 12 years of operations and approximately 1,200 collection points.  Tidewater Renewables plans to aggressively grow the acquired business and has already improved realized pricing by approximately fifteen percent since closing the acquisition.

Tidewater Renewables continues to progress other various feedstock supply initiatives and long-term partnerships in order to secure sufficient feedstock for the operation of the Complex and other renewable fuels initiatives being pursued.

Forward-Looking Information

This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") that relate to the Corporation current expectations and views of future events.  These forward-looking statements relate to future events or the Corporation's future performance.  Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumption or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward -looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements.  No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this new release should not be unduly relied upon.  These statements speak only as of the date of this new release.  In particular and without limitation, this news release contains forward-looking statements pertaining to future monetization opportunities for BC LCFS credits, growth plans for its feed stock strategy and Tidewater Renewables' business as described under the heading "About Tidewater Renewables" below. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Corporation's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information.  Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Corporation's supplemented PREP prospectus dated August 12, 2021, filed on SEDAR.  Tidewater Renewables' does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable laws. 

ABOUT TIDEWATER RENEWABLES

Tidewater Renewables is traded on the TSX under the symbol "LCFS". Tidewater Renewables is a multi-faceted, energy transition company. The Corporation is focused on the production of low carbon fuels, including renewable diesel, renewable hydrogen, and renewable natural gas, as well as carbon capture through future initiatives.  The Corporation was created in response to the growing demand for renewable fuels in North America and to capitalize on its potential to efficiently turn a wide variety of renewable feedstocks (such as tallow, used cooking oil, distillers corn oil, soybean oil, canola oil and other biomasses) into low carbon fuels. Tidewater Renewables' objective is to become one of the leading Canadian renewable fuel producers. The Corporation is pursuing this objective through the ownership, development, and operation of clean fuels projects and related infrastructure, utilizing existing proven technologies. Organically, Tidewater Renewables will seek to leverage the existing infrastructure and engineering expertise of Tidewater Midstream and Infrastructure Ltd., its majority shareholder, regarding the development of the Corporation's portfolio of greenfield and brownfield capital projects as well as the expansion of the Corporation's product offerings.  Additional information relating to Tidewater Renewables is available on SEDAR at www.sedar.com and at www.tidewater-renewables.com. 

SOURCE Tidewater Renewables Ltd.

Joel MacLeod, Executive Chairman and CEO, Tidewater Renewables Ltd., Phone: [phone], Email: [email protected]