The Cutting Edge of Waste Conversion and Recycling


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The Cutting Edge of Waste Conversion and Recycling

  1. 1. “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 expensesby 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!MSWlandfill>90% MSW volume <05% MSW volumerecycleables compost AD feedstockinsulation CH4green fuelRE3
  2. 2. RE3 - a revolutionary simple,unique and lucrative MSWsystem 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 accelerateAnaerobic Digestion / CH4• Compost• Green Fuel (Kyoto Compliant)• Architectural Insulation
  3. 3. RE3 Plant Revenue Streams:•Tipping Fees•Cellulosic Fiber Feedstock forAnaerobic Digestion• Methane CH4 Production• Recycled Materials• Green Fuel - Cellulosic Fiber• Garden Markets - Compost• Building Products - InsulationRE3 Plants vs Current Options• A fraction of the cost• A fraction of the build time• A fraction of the footprint• A fraction of operating expenseRE3 Plant Ownership - Cash Flow/Plant - 5 Year US ModelIncom eTipping Fees $7,500,000 $7,500,000 $12,000,000 $18,750,000 $22,500,000Energy Sales (CH4) by BTU $13,562,500 $13,562,500 $17,937,500 $22,312,500 $27,125,000Cake Fees $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000Misc Recycling $500,000 $500,000 $1,000,000 $1,250,000 $1,250,000Total Incom e $26,562,500 $26,562,500 $35,937,500 $47,312,500 $55,875,000Operating Expenses/OverheadGeneral Labor $1,000,000 $1,000,000 $1,250,000 $1,250,000 $1,250,000Internal Managem ent $300,000 $300,000 $300,000 $300,000 $300,000External Managem ent Fees $300,000 $300,000 $400,000 $400,000 $400,000Maintenance & Parts $500,000 $500,000 $500,000 $500,000 $500,000Gas & Electric $500,000 $500,000 $550,000 $550,000 $550,000W ater $100,000 $100,000 $125,000 $125,000 $125,000Equipm ent $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000Misc Expenses $500,000 $500,000 $500,000 $500,000 $500,000Operations Support Contracts $400,000 $400,000 $400,000 $200,000$0Royalties $200,000 $200,000 $50,000 $100,000$0Total Overhead $4,800,000 $4,800,000 $5,075,000 $4,925,000 $4,625,000Gross Profit/-Loss $21,762,500 $21,762,500 $30,862,500 $42,387,500 $51,250,000Financing @ 20yrs AmInterest @ 6% $4,300,000 $4,300,000 $4,300,000 $4,300,000 $4,300,000Surplus/Net Profit $17,462,500 $17,462,500 $26,562,500 $38,087,500 $46,950,000Aggregate Surplus $34,925,000 $61,487,500 $99,575,000 $146,525,000Investment (Purchase Price) $50,000,000Year 1 Year 2 Year 3 Year 4 Year 5130,000 Tons Fiber100,000 Tons Cake
  4. 4. RE3 Business Objectives:• Sell and License 33 RE3 Plantsover 5 years• Raise $10MM for operational,licensing and engineeringexpensesRE3 Revenue Stream:• Profits from plant sale/build• Royalties - plant output• Profits from RE3 owned plants1 2 3 4 5Income & ReservesReservesPlant Sales (gross profit)Operations Support ContractsRoyaltiesGeneral 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/ExternalConsultingManagement SalariesManagement SalariesTotal ExpensesSurplus/-LossRE3 USA LTDConfidential and Proprietary33 Plants SoldAvg. Sales Price @ $50 MM USDRE3 USA Plant Sales 5 Year Pro FormaPlant Sales 15Forcasted Financial PositionTotal 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$212,790,00010531Year$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$11,990,000$
  5. 5. 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 ParksPrimary 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
  6. 6. RE3 Market Trends/Barriers to EntryLandfills 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 pendingValuable 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 expiringBig three make $$$ from landfills (at capacity), new ones are difficult/expensive to acquireBig three are begining to seek new options
  7. 7. Ambiensys (Spain)Babcock/VT (England)Stericycle (England)WasteAway (USA)RE3 USA LTD (USA)Tons/Yr(,000)DiversionRateFinalProduct Jobs/Plant Footprint Build CostBuild TimeProfitFactor2525016075300* 80+%70%55%A - Fiber to Energy BurnB - Fiber to CompostC - Fiber to Green FuelD - Fiber to Insulation5025-50LargeLargeLargeLargeSmall>2 Yr>2 Yr>2 Yr>2 Yr<1 Yr$100MM$150+MM$175MM$50MMSlimUnknownUnknownUnknownHIGHUnknownUnknownUnknownUnknown* Modularity and Scaleabilitycreates many plant size optionsA, B, C, D,E, F, GA, CBAE - Anaerobic Digestion FeedstockF - Produces CH4G - Recover RecycleablesH - OtherRE3 CompetitionNo 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 YrGasification/Laser ARC Large >3 YrBurning/Co-Generation Large >4 YrIndirectExistingMSW SystemsDirectAutoclaveMSW Systems1,000+ F? 20 $75MM MedTBD 40-50%HSYNGAS? 40 $300+MM Slim375+ 65%ToxicAsh 35 >$300MM Slim
  8. 8. RE3 CompanyRE3 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 2012Brendan Hughes, President, CEO, Director, Founder, Re3 USA LTDTom Wilson, Chief Engineer and Designer – ‘The Wilson System’Professor Deborah Boyd, Director, Founder RE3 GroupDrew Gorman, Vice President, Director of Marketing, Re3 USA LTDLes Neumann and John Lonczak - Advisors - HVCFI/iCANny
  9. 9. RE3 SummarySeeking $10MM investment to facilitate sale of 33 RE3 Plants within 5 yearsProjected 33 RE3 Plants will generate $230MM income over 5 yearsRE3 - the least expensive, most lucrative and green MSW process to dateRE3 - smallest footprint, quickest build MSW processing plantRE3 converts waste into energy
  10. 10. RE3 Contact:Drew Gorman914.844.924650-60,000 Sq Ft average plant size