Manufacturing

Pacific Trader: Northstar Clean Technologies is raising the roof on a new industry

The Delta company is starting up its first asphalt shingle recycling plant this year. Oh, and its stock has more than doubled in the last year

By Michael McCullough /

The stock: There’s widespread concern (and action) around the plastic waste we discard every day. But there is precious little around another non-biodegradable petrochemical product that typically ends up in the dump in large quantities: asphalt roofing tiles. In the U.S., 84 percent of new single-family homes are topped with asphalt shingles. Across North America, 16.5 million tonnes of asphalt roofing waste is sent to landfills annually, the equivalent of 20 million barrels of oil. Delta-based Northstar Clean Technologies (TSXV:ROOF) wants to change that by commercializing a patented process to recycle asphalt shingles.

The drivers: Northstar went public in 2021 and has since piloted the recycling process at a plant in Delta. In the coming months a full commercial plant capable of processing 40,000 tonnes of shingles per year will become operational in Calgary. Customers have signed on to buy the liquid asphalt, fibre and aggregate produced to be applied to new shingles, paving and other applications. Northstar expects to also derive revenue from tipping fees—what the builder would otherwise pay the landfill—and carbon credits.

In 2023, Northstar received a US$10-million investment from TAMKO Building Products, one of the largest roofing manufacturers in the U.S. and a planned partner in future processing operations stateside. TAMKO has a 19-percent equity stake in the company. Northstar has also received an $8.75-million loan from BDC and $7.3 million in grants from Emissions Reduction Alberta and Alberta Innovates.

But the biggest validation has come from investors. Closing at 35 cents a share Tuesday (April 1), ROOF stock is up 118.75 percent over the past year.

Word on the street: Like most micro-caps, Northstar has no analyst coverage. However, the TSX Venture Exchange named it to its annual Venture 50 list of top-performing stocks in February. ROOF shares posted a 220-percent gain in calendar 2024.

Coming and going: Well Health Technologies Corp. (TSX:WELL) stock tumbled 17 percent on Monday (March 31) following the announcement that it is delaying the release of its fourth-quarter and 2024 annual results as a result of an investigation into billing practices at its subsidiary Circle Medical, a telehealth provider in California. Well expects to report its year-end results by mid-April.