Canadian Premium Sand Inc. announced that it has successfully applied for and received a $75 million tax credit allocation to re-purpose a former glass manufacturing site in the southern U.S. to produce pattern solar glass.
The company’s submission to the Department of Energy was one of over 800 projects submitted in 2024 and one of 140 successful projects granted a 48C tax credit allocation. This tax credit allocation is transferable, providing the company with the option to monetize it to support construction financing. Recipients of transferable tax credits have the flexibility to sell the tax credit for cash or enter into a tax-equity transaction with a third party to support project financing. CPS is in the process of evaluating these options as it advances the U.S. project to a final investment decision later this year.
Strategic partner
CPS’s wholly owned U.S. subsidiary, CPS Glass USA Corp., is negotiating a joint venture agreement with a strategic partner to advance the U.S. project. The strategic partner brings glass manufacturing expertise, purchasing power and in-house engineering capability. Re-purposing a former manufacturing facility with a strategic partner will allow CPS to refine the capital cost and de-risk both the development of the project and operation of the facility.
US Project continues to advance
CPS continues to progress engineering and commercial contracting efforts for the U.S. project by:
- advancing pre-construction engineering and design for the U.S. project to finalize the capital cost estimate,
- initiating an update to the existing Environmental Protection Act permit to reflect the revised operational parameters, and
- advancing offtake discussions with its customer base, currently negotiating up to 60% of the U.S. project output under both binding contracts and memorandums of understanding.
Anshul Vishal, vice president of corporate development, will continue to head commercial development of the U.S. project working towards a successful construction financing as the company advances its broader vision of leveraging its low iron silica sand resource to become North America’s largest vertically integrated supplier of pattern solar glass.
