5. Environmental Impact
Impact / Product
Mineral
Aggregate
Arqlite
Aggregate
Mining Impact ✗ ✓
Transportation pollution ✗ ✓
Building energy efficiency ✗ ✓
Less use of water ✗ ✓
Deviate plastics from landfills ✗ ✓
Avoid ocean pollution ✗ ✓
8. Recycling Fee + Product Sales
M3 Mineral Arqlite
#1 Drainage U$117 U$100
#2 Precast U$72 U$63
#3 Concrete U$45 U$40
Ton Landfill Arqlite
Recycling Y1 U$46 U$67
Recycling Y2 U$60 U$0
Double Revenue Model
*Recycling fee not needed at scale
9. Recycling
Buenos Aires $40
Los Angeles $80
Crushed stone
Buenos Aires $262
Los Angeles $429)
(MUSD/Year)
https://goo.gl/8ms4Et
https://goo.gl/h9V3SV
https://goo.gl/TahWRs
https://goo.gl/66spny
Arqlite has developed an environmental solution that impacts on two global problematics
Desde 1950 hasta el 2015 se generaron 6300M ton de residuos plásticos . Solo el 9% se recicló. Esto es debido a la baja eficiencia de los sistemas de reciclado existentes y a la complejidad de los materiales que se han vuelto mas y mas eficientes, volviendose inposibles de reciclar.
So at Arqlite we’ve developed a new proprietary process with two main differences with existing solutions: It is low cost, meaning that it can be easily scaled, and it has the capacity of recycling all kind of plastics, even the complex ones that today are considered as non-recyclables.
We’ve filed a provisional US patent in 2015 and have extended it to a PCT agreement in 2016 on both the process and the product. Still with no claims, we are confident the definite patents will be accepted as they are.
On the other hand, the modern construction industry looking to reduce its carbon footprint, demands more efficient materials, lighter and with better insulating capacity.
The recycling technology has the potential of producing diverse products, but right now or first development is an artificial gravel that can be massively used in the construction industry. This gravel can be used in non-structural concrete, drainage layers for big fields and landscaping projects, and base for roads.
How can we compare Arqlite to a landfill?
Well, Arqlite turns waste into value.
Our process compresses plastics 10 to 1 in volume.
As it replaces mineral aggregates it reduces the need for quarry mining protecting the environment.
By being locally produced it reduces the pollution due to transportation from quarries.
And by being highly efficient it reduces the carbon footprint of modern constructions.
The recycling technology has the potential of producing diverse products, but right now or first development is an artificial gravel that can be massively used in the construction industry. This gravel can be used in non-structural concrete, drainage layers for big fields and landscaping projects, and base for roads.
How can we compare Arqlite to a landfill?
Well, Arqlite turns waste into value.
Our process compresses plastics 10 to 1 in volume.
As it replaces mineral aggregates it reduces the need for quarry mining protecting the environment.
By being locally produced it reduces the pollution due to transportation from quarries.
And by being highly efficient it reduces the carbon footprint of modern constructions.
So things are up and running in Buenos Aires, next step is to bring this technology to the US, you are welcome to joins us on the journey of designing more efficient materials, beneficial for people and for the planet.
Thank you
Arqlite has a double income revenue model
On one side private waste generators and municipalities that actually pay a fee for landfill disposal, are willing to pay for a greener solution.
And on the other side the construction industry that uses huge amounts of mineral aggregates, are willing to become more efficient and more sustainable.
Two solutions: two markets.
Both massive industries that can be replicated in different cities around the world through self-owned facilities, operation for 3rd parties or licensing systems.
Here you can see market size for Buenos Aires and Los Angeles, both showing big size markets on both recycling and aggregates for construction.
Arqlite has become a recycling technology company, with its first product, Arqlite gravel already on the market and more products on R&D phase.
Let me highlight some of our strengths:
The recycling process is an unique solution for companies an municipalities.
The material is also unique for its construction benefits.
We have a patent pending.
We are closing long term commercial deals with multinational brands that can be replicated globally.
We estimate the R&D entry barrier to be 2 years.
So far we’ve proven traction on the three main areas: Recycling for multinational companies and municipalities, interest from construction companies and landscapers and validation for global impact from global impact accelerators.
Here you can see the volumes of our closed deals, which exceed 700 tons/month, enough to go over our breakeven point before the end of the first year of operations. These deals are on both sides of the business, recycling and selling the material.
We are already in conversations with more companies for a total of 2000 tons a month of material being both, processed and sold.
Today we are at the fourth quarter of Year 0, selling all the inventory we can produce with our prototype equipment. Year 1 begins in 2 months with our first large scale equipment up and running, with a production capacity of 250 tn/month, making us breakeven by the end of the year.
Numbers for 300 ton/month give us a margin of 40% with a Cost of sales of $142ton, a seling price of $350ton, leving the margin at $208ton
Cap cost for one facility producing up to 1500 ton/moth is $800k
By the end of the third year, projecting 4 self owned facilities and ten licenses, the company will reach $650 thousand dollars of monthly profit
Info: Consumption 500 kw/h x ton
Buenos Aires u$0,051 x Kw/h = u$26.- Ton
Seattle u$0,050 x Kw/h = u$25.- Ton
Arqlite is formed by a high-skilled team of experts in technical and commercial areas: Gastón (materials engineer), Javier (industrial engineer), Victoria (environmental engineer) and myself with a mix of expertise in marketing and environmental sustainability leading the group.
This solid team is combined with great external advisors from National Laboratories, construction companies, law firms and global accelerators.
Last year we raised $280,000 in a Series Seed down in Argentina. This year we're raising $800,000 in a convertible note with a 20% discount and a $5 million cap, the first $300,000 of which is already committed. The new funds will be used to build the first commercial-scale facility in Argentina, begin work on our second facility in the US West Coast and fund the development of a licensing system for municipalities."
Here you can see next steps in detail. We’ve just closed our first commercial deals with a construction company and a landscaper in Argentina. We’ve sold all of our inventory and the companies are already waiting for more.
The opening of the second facility is projected in 2018, either in Seattle or Los Angeles, together with the development of a licensing system for Europe and Asia.
So things are up and running in Buenos Aires, next step is to bring this technology to the US, you are welcome to joins us on the journey of designing more efficient materials, beneficial for people and for the planet.
Thank you
