Converting Food Waste into Fertilizer - Flannery

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  • BOS-HAJ003-20050927-KUMAHR1
  • BOS-HAJ003-20050927-KUMAHR1
  • Converting Food Waste into Fertilizer - Flannery

    1. 1. 10 th Annual Organics Recycling Summit <ul><ul><li>Presented by: </li></ul></ul><ul><ul><li>Jim Coull </li></ul></ul><ul><ul><li>MassOrganics I LLC </li></ul></ul>
    2. 2. COMPANY OVERVIEW <ul><li>Who is Converted Organics? </li></ul><ul><ul><li>Converted Organics is a company formed to convert food waste into organic fertilizers for retail lawn & garden, professional turf, and agriculture markets </li></ul></ul><ul><li>What do we do? </li></ul><ul><ul><li>Accept wide mix of food waste from supermarkets, then process it using “high temperature liquid composting” technology to produce organic fertilizers </li></ul></ul><ul><ul><ul><li>Pathogen free, pasteurized at 176 0 F for 48 hours </li></ul></ul></ul><ul><ul><ul><li>Our products do not contain any manure, chicken waste, or bio-solids (treated sewer sludge) </li></ul></ul></ul>
    3. 3. Agriculture Fertilizer Food Waste Market Lawns CONVERTED ORGANICS BUSINESS MODEL Lawn Care Food waste represents 20% of U.S. solid waste stream and is land-filled, where it decomposes to produce methane gas (20X more destructive than CO 2 as a greenhouse gas). Food Waste Expired/spoiled food from Supermarkets: Cereals and Grains Fruits and Vegetables Meat and Fish Fertilizer Sold Retail lawn & garden, turf, and agriculture markets Market Supermarket sells produce Fertilizer Produced Converted Organics processes waste into fertilizer Crop Production Agriculture Produces Crops
    4. 4. BUSINESS MODEL HIGHLIGHTS <ul><li>Build fertilizer plants adjacent to cities </li></ul><ul><li>Convert food waste into a resource </li></ul><ul><li>Substitute for petroleum-based synthetic fertilizers </li></ul><ul><li>Plants operate as perpetual urban landfills </li></ul><ul><ul><li>Never fill-up </li></ul></ul><ul><ul><li>Do not pollute </li></ul></ul><ul><li>We get paid to take waste </li></ul><ul><li>We get paid for our end-products </li></ul><ul><li>Reduce greenhouse gases </li></ul><ul><li>Environmental sustainability </li></ul>
    5. 5. COMPANY TIMELINE <ul><li>2002 Established to pursue waste-to-fertilizer business </li></ul><ul><li>2003 Founders invest $3M to build company </li></ul><ul><li>2003 Secures license for technology </li></ul><ul><li>2004 Identifies location for first plant in New Jersey </li></ul><ul><li>2007 Completes $10M IPO </li></ul><ul><li>2007 Secures $17M project financing through NJ Economic Development Authority </li></ul><ul><li>2007 Begins building first plant in New Jersey </li></ul><ul><li>2008 Acquires assets of United Organics Products and Waste Recovery Industries of Gonzales, CA </li></ul><ul><li>2009 Production of fertilizers begins at NJ plant </li></ul><ul><li>2010 License signed - MassOrganics I Plant (Sutton, MA) </li></ul><ul><li>Publicly-held company (NASD: COIN) </li></ul><ul><li>Raised $76M in capital to date </li></ul>
    6. 6. 1 2 3 <ul><ul><li>Converted Organics diverts food waste from going to landfills </li></ul></ul><ul><ul><ul><li>250 million tons of food waste disposed of in U.S. landfills annually </li></ul></ul></ul><ul><ul><ul><li>When land-filled, food waste decomposes to produce methane gas </li></ul></ul></ul><ul><ul><ul><li>Methane gas is 20x more destructive than CO 2 as greenhouse gas </li></ul></ul></ul><ul><ul><li>Converted Organics fertilizer is a replacement for synthetic fertilizer </li></ul></ul><ul><ul><ul><li>Converted Organics fertilizers do not contain any chemicals </li></ul></ul></ul><ul><ul><ul><li>The production of 1 ton of synthetic fertilizer requires the burning of enough natural gas to release 4.6 tons of carbon dioxide into the atmosphere </li></ul></ul></ul><ul><ul><li>Converted Organics fertilizers deliver dual environmental benefits </li></ul></ul><ul><ul><ul><li>Reduce greenhouse gases by diverting food waste from landfills </li></ul></ul></ul><ul><ul><ul><li>Reduce greenhouse gases by replacing energy-intensive synthetic fertilizers </li></ul></ul></ul>WHY WHAT WE DO MATTERS?
    7. 7. MARKETS AND PRODUCTS Product Type Products Retail Agriculture Golf Courses Professional Lawn Care Dry 8-1-4 4-1-8 Liquid 1-1-1 6-0-0
    8. 8. AGRICULTURE REPRESENTS 98% OF U.S. FERTILIZER DEMAND - 23M TONS, OR 40%, IS LIQUID FERTILIZER Millions of Tons Source: U.S. Fertilizer Institute and Scott’s Miracle-Gro Presentation Converted Organics target markets Market Product Type 1 58 Dry Bulk Liquid (includes anhydrous ammonia) 57 29 23 6 58 Dry Bagged Agriculture Non-Agriculture (Lawn & Garden, Professional Turf, Other)
    9. 9. THERE ARE SEVEN MILLION CERTIFIED ORGANIC FARM ACRES IN U.S., GROWING AT 12% CAGR Source: Organic Farming Research Foundation
    10. 10. THERE ARE 18,700 GOLF COURSES IN THE U.S. WITH INCREASING DEMAND FOR NATURALLY-BASED LIQUID FERTILIZERS DUE TO ENVIRONMENTAL CONCENRS Public 10,870 Private 4,850 Municipal 2,980 Source: Freedonia Golf Course Consumables to 2009
    11. 11. GOLF COURSES CAN REDUCE CHEMICAL INPUTS BY 50% AND CAN SWITCH FROM SYNTHETIC TO ORGANIC FERTILIZERS WITHOUT SACRIFICING TURF QUALITY Cornell Univ. U. Illinois
    12. 12. U.S. HOME LAWNCARE MARKET <ul><ul><li>None </li></ul></ul><ul><ul><li>1 </li></ul></ul><ul><ul><li>2 </li></ul></ul><ul><ul><li>3 </li></ul></ul><ul><ul><li>4 </li></ul></ul><ul><ul><li>7-8 </li></ul></ul><ul><ul><li>5 </li></ul></ul><ul><ul><li>6 </li></ul></ul><ul><ul><li>Millions of Home Lawns </li></ul></ul><ul><ul><li>Applications Per Year </li></ul></ul><ul><ul><li>18 </li></ul></ul><ul><ul><li>40 </li></ul></ul><ul><ul><li>10 </li></ul></ul><ul><ul><li>1 </li></ul></ul><ul><ul><li>1 </li></ul></ul><ul><ul><li>10 </li></ul></ul>50% Do Nothing We sell to consumer market via major retailers (30M U.S. homes) 80 million home lawns in U.S. covering 30 million acres Source: Scotts Miracle-Gro (April 2008) <ul><ul><li>Significant trend among “do-it-yourselfers” to buy natural or organic fertilizers </li></ul></ul><ul><ul><li>Consumers demanding organic programs as alternative to synthetics from Professional Lawn Care Companies </li></ul></ul>We sell bulk fertilizer to Professional Lawn Care Companies (10M homes)
    13. 13. PRODUCT POSITIONING <ul><li>No synthetic chemicals </li></ul><ul><li>No manures </li></ul><ul><li>No chicken waste </li></ul><ul><li>No bio-solids </li></ul><ul><li>Pathogen free </li></ul>
    14. 14. KEY SELLING POINTS – CONVERTED ORGANICS LAWN FERTILIZER 1 2 3 4 5 <ul><ul><li>Our product is unique - it does not contain any: </li></ul></ul><ul><ul><ul><li>Synthetic chemicals </li></ul></ul></ul><ul><ul><ul><li>Chicken waste (Chickity Doo Doo, Espoma) </li></ul></ul></ul><ul><ul><ul><li>Bio-solids or human waste (Milorganite) </li></ul></ul></ul><ul><ul><li>It is very competitively priced: </li></ul></ul><ul><ul><ul><li>Converted Organics retails for $16. 00 per bag </li></ul></ul></ul><ul><ul><ul><li>Scotts Organic Choice retails for $21. 00 per bag </li></ul></ul></ul><ul><ul><ul><li>Both cover 4,000 ft. 2 </li></ul></ul></ul>By diverting food waste from landfills where it decomposes to produce methane gas, we help to reduce greenhouse gases Use of our product results in green, lush lawn because it is made from recycled plant matter, which contains all of the key nutrients Our product is SAFE! It is made from recycled food waste and does not contain synthetic chemicals Home Depot SKU# 353-343 Available at Home Depot in MA, CT, RI and Long Island, NY
    15. 15. WAL-MART (FEBRUARY 2010)
    16. 16. SAM’S CLUB (FEBRUARY, 2010)
    17. 17. MassOrganics I LLC – SUTTON, MA PLANT <ul><ul><li>In February, 2010, Converted Organics entered into a license agreement with MassOrganics I LLC. </li></ul></ul><ul><ul><li>MassOrganics I LLC will use Converted Organics proprietary system for the manufacture of organic fertilizer products. </li></ul></ul><ul><ul><li>MassOrganics I will install and operate the system at a new manufacturing facility in Sutton, MA (open in December 2011): </li></ul></ul><ul><ul><ul><li>Designed to receive 108 tons of food waste per day </li></ul></ul></ul><ul><ul><li>MassOrganics I will produce liquid and granular organic fertilizer: </li></ul></ul><ul><ul><ul><li>6M gallons of liquid fertilizer </li></ul></ul></ul><ul><ul><ul><li>8,000 tons of dry fertilizer </li></ul></ul></ul><ul><ul><li>In March 2009, Converted Organics received a permit from the Commonwealth of Massachusetts, Department of Environmental Protection to operate a food waste processing facility at the site </li></ul></ul>
    18. 18. CONTACTS <ul><li>Jim Coull </li></ul><ul><li>MassOrganics I </li></ul><ul><li>Converted Organics Inc. </li></ul><ul><li>w: 978.461.0330 </li></ul><ul><li>c: 978.290.0624 </li></ul><ul><li>[email_address] </li></ul><ul><li>David Flannery </li></ul><ul><li>Vice President, Marketing </li></ul><ul><li>Converted Organics Inc. </li></ul><ul><li>w: 617.624.0111 </li></ul><ul><li>c: 508.654.5422 </li></ul><ul><li>[email_address] </li></ul><ul><li>Converted Organics Inc. </li></ul><ul><li>7A Commercial Wharf West </li></ul><ul><li>Boston, MA 02110 </li></ul><ul><li>617.624.0111 </li></ul><ul><li>617.624.0333 fax </li></ul><ul><li>www.convertedorganics.com </li></ul>

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