The Cutting Edge of Waste Conversion and Recycling
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Transcript of The Cutting Edge of Waste Conversion and Recycling
“A World Bank study sees global trash avalanche by 2025.Handling the current 1.43BB tons of trash costs $205BB and it is estimated to grow to 2.42BB tons at $375BB annually”
RE3 has the “greenest” solution to growing MSW problems and expenses by converting MSW from an expensive burden to a valuable commodity.
RE3 is more than a logistical and cost reduction solution to MSW,it’s a profit center!
MSW
landfill
>90% MSW volume <05% MSW volume
recycleables compost AD feedstockinsulation CH4green fuel
RE3
RE3 - a revolutionary simple, unique and lucrative MSW system produces a pure,organic “Cellulosic Fiber”
• Proven with a 300,000+ tons/annum plant - Ireland• >$12MM private investment to date
• Based on autoclaves controlled by proprietary software• Refined over a decade of development work• Scaleable, modular and expandable plant design• Clean, negative air plants are Carbon Credit qualified (where applicable)
• Captures non-recycled recyclables• Reduces MSW volume by 80%
• Feedstock to accelerate Anaerobic Digestion / CH4 • Compost • Green Fuel (Kyoto Compliant) • Architectural Insulation
RE3 Plant Revenue Streams:• Tipping Fees• Cellulosic Fiber Feedstock for
Anaerobic Digestion• Methane CH4 Production• Recycled Materials• Green Fuel - Cellulosic Fiber• Garden Markets - Compost• Building Products - Insulation
RE3 Plants vs Current Options• A fraction of the cost• A fraction of the build time• A fraction of the footprint• A fraction of operating expense
RE3 Plant Ownership - Cash Flow/Plant - 5 Year US Model
In co m eT ipping F ees $7,500 ,000 $7,500 ,000 $12,000 ,000 $18,750 ,000 $22,500 ,000E nergy S ales (C H 4) by B T U $13,562 ,500 $13,562 ,500 $17,937 ,500 $22,312 ,500 $27,125 ,000C ake F ees $5,000 ,000 $5,000 ,000 $5,000 ,000 $5,000 ,000 $5,000 ,000M isc R ecycling $500,000 $500,000 $1,000 ,000 $1,250 ,000 $1,250 ,000
T o tal In co m e $26,562 ,500 $26,562 ,500 $35,937 ,500 $47,312 ,500 $55,875 ,000
O p eratin g E xp en ses/O verh eadG eneral Labor $1,000 ,000 $1,000 ,000 $1,250 ,000 $1,250 ,000 $1,250 ,000Internal M anagem ent $300,000 $300,000 $300,000 $300,000 $300,000E xternal M anagem ent F ees $300,000 $300,000 $400,000 $400,000 $400,000M aintenance & P arts $500,000 $500,000 $500,000 $500,000 $500,000G as & E lectric $500,000 $500,000 $550,000 $550,000 $550,000W ater $100,000 $100,000 $125,000 $125,000 $125,000E quipm ent $1,000 ,000 $1,000 ,000 $1,000 ,000 $1,000 ,000 $1,000 ,000M isc E xpenses $500,000 $500,000 $500,000 $500,000 $500,000O perations S upport C ontracts $400,000 $400,000 $400,000 $200,000 $0R oyalties $200,000 $200,000 $50,000 $100,000 $0
T o tal O verh ead $4,800 ,000 $4,800 ,000 $5,075 ,000 $4,925 ,000 $4,625 ,000
G ro ss P ro fit/-L o ss $21,762 ,500 $21,762 ,500 $30,862 ,500 $42,387 ,500 $51,250 ,000
F in an cin g @ 20yrs AmIn terest @ 6% $4,300,000 $4,300 ,000 $4,300 ,000 $4,300 ,000 $4,300 ,000
S u rp lu s/N et P ro fit $17 ,462 ,500 $17,462 ,500 $26,562 ,500 $38,087 ,500 $46,950 ,000Ag g reg ate S u rp lu s $34,925 ,000 $61,487 ,500 $99,575 ,000 $146,525 ,000
Investment (Purchase Price) $50,000,000Year 1 Year 2 Year 3 Year 4 Year 5
130,000 T ons F iber100,000 T ons 'C ake'
RE3 Business Objectives:• Sell and License 33 RE3 Plants over 5 years• Raise $10MM for operational, licensing and engineering expenses
RE3 Revenue Stream:• Profits from plant sale/build• Royalties - plant output• Profits from RE3 owned plants
1 2 3 4 5
Income & ReservesReservesPlant Sales (gross profit)Operations Support ContractsRoyalties
General ExpensesFixed Assets (office, technology etc)Accounts Payable (variable expenses)Staff & Salaries: Office/Sales/MarketingTravel and Related Sales ExpensesLegal & Accounting FirmsLocal, State & Fed PermitsEnvironmental StudiesEngineering – Internal/ExternalConsulting
Management SalariesManagement Salaries
Total ExpensesSurplus/-Loss
RE3 USA LTD
Confidential and Proprietary
33 Plants SoldAvg. Sales Price @ $50 MM USD
RE3 USA Plant Sales 5 Year Pro Forma
Plant Sales 15
Forcasted Financial Position
Total Income & Reserves
$95,290,000135,000,000
$400,000$200,000
$230,890,000
$200,000$400,000
$3,000,000$2,000,000$1,500,000$1,400,000$1,400,000$2,400,000$1,000,000
$4,800,000
$18,100,000$212,790,000$212,790,000
10531
Year
$34,615,00090,000,000
$400,000$200,000
$125,215,000
$125,000$400,000
$2,000,000$1,200,000$1,000,000$1,200,000
$500,000$2,000,000
$800,000
$3,200,000
$12,425,000$112,790,000$112,790,000
$9,965,00045,000,000
$400,000$50,000
$55,415,000
$125,000$150,000
$1,500,000$700,000$800,000
$1,000,000$400,000
$1,700,000$600,000
$2,000,000
$8,975,000$46,440,000$46,440,000
$6,240,00018,000,000
$200,000$100,000
$24,540,000
$100,000$100,000
$1,100,000$350,000$700,000$800,000$200,000
$1,400,000$400,000
$900,000
$6,050,000$18,490,000$18,490,000
$6,495,0009,000,000
$0$0
$225,000$60,000
$640,000$180,000$400,000$600,000$200,000$900,000$300,000
$0
$3,505,000$11,990,000$11,990,000
$
RE3 Market Targets
• Waste Management Companies• Municipalities• State and Federal Government• US Military• Island Cities, States, Nations• Developing Countries• Hospital and Medical Facilities• Industrial and Food Processing Plants• Universities, Hotels, Theme Parks
Primary Markets - Low Lying Fruit• Targets with outdated equipment• Targets in need of cutting costs• Targets without MSW systems• Targets in need of RE3 by-products• Targets using anaerobic digestion• Targets in need of Carbon Credits• Targets in need of new revenue sources
RE3 Market Trends/Barriers to Entry
Landfills are at capacity and being closed...few new ones coming on lineWaste management systems are aging and costs are rising - NE USARecycleables are entering the MSW streamBurning (gasification) MSW is expensive, environmentally bad and being bannedThere are no profitable gasification plantsState and Federal mandates to reduce MSW volumes are in place or pending Valuable waste is being thrown awayMunicipalities must lower expenses and seek affordable waste solutions (find revenue sources too!)
Trash management procedures are in fluxPublic is becoming aware landfill based toxins and environmental damageExisting waste management equipment still being amortizedBig three waste mgt cos. are controlling markets but their long term contracts are expiring
Big three make $$$ from landfills (at capacity), new ones are difficult/expensive to acquire
Big three are begining to seek new options
Ambiensys (Spain)
Babcock/VT (England)
Stericycle (England)
WasteAway (USA)
RE3 USA LTD (USA)
Tons/Yr(,000)
DiversionRate
FinalProduct Jobs/Plant Footprint Build CostBuild Time
ProfitFactor
25
250
160
75
300* 80+%
70%
55%
A - Fiber to Energy BurnB - Fiber to CompostC - Fiber to Green FuelD - Fiber to Insulation
50
25-50
Large
Large
Large
Large
Small
>2 Yr
>2 Yr
>2 Yr
>2 Yr
<1 Yr
$100MM
$150+MM
$175MM
$50MM
Slim
Unknown
Unknown
Unknown
HIGH
Unknown
Unknown
Unknown
Unknown
* Modularity and Scaleability creates many plant size options
A, B, C, D,E, F, G
A, C
B
A
E - Anaerobic Digestion FeedstockF - Produces CH4G - Recover RecycleablesH - Other
RE3 Competition
No competitor can match the quality, consistency, performance, value or the speed to build of the RE3 product. This is due to RE3plant design, trade secrets and proprietary control software.
Landfill 100% Large >2 Yr
Gasification/Laser ARC Large >3 Yr
Burning/Co-Generation Large >4 Yr
IndirectExistingMSW Systems
DirectAutoclaveMSW Systems
1,000+ F? 20 $75MM Med
TBD 40-50%H
SYNGAS? 40 $300+MM Slim
375+ 65%ToxicAsh 35 >$300MM Slim
RE3 Company
RE3 Group Founded 2000300,000 ton facility built in Limerick, Ireland at Greyhound Waste Mgt.Based on Wilson Autoclave Steam Treatment ProcessRE3 USA Ltd established 2011 to market RE3 plantsRE3 USA incorporates Anaerobic Digestion into plant design in 2012RE3 USA becomes member of iCLEAN in 2012
Brendan Hughes, President, CEO, Director, Founder, Re3 USA LTD
Tom Wilson, Chief Engineer and Designer – ‘The Wilson System’
Professor Deborah Boyd, Director, Founder RE3 Group
Drew Gorman, Vice President, Director of Marketing, Re3 USA LTD
Les Neumann and John Lonczak - Advisors - HVCFI/iCANny
John Lonczak and Les Neumann as Advisors from HVCFI/iCANny
RE3 Summary
Seeking $10MM investment to facilitate sale of 33 RE3 Plants within 5 years
Projected 33 RE3 Plants will generate $230MM income over 5 years
RE3 - the least expensive, most lucrative and green MSW process to date
RE3 - smallest footprint, quickest build MSW processing plant
RE3 converts waste into energy