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Investor Presentation08 12 2010
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IntroductionIntroductionIntroductionIntroduction
Green EnviroTech (GET)is aninnovative materials
processorthat will revolutionize therecycled plastics
market by using a unique and proprietary technology that
createshighquality plasticresin andcrudeoil from theshreddedresidueof automobiles and appliances
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Current MarketCurrent MarketCurrent MarketCurrent Market
11 million automobilesshredded annually across the U.S.
25% ofeachvehicles weight classified as unrecoverableshredderresidue
3.5 million tonsof plastic used annually by the US automotive and applianceindustries
Shredder Residue
Automobile
ShreddersLandfill
Auto and
Appliance
Industries
Plastic
Producers
Resin
Compounders,
Formulators &
Distributors
Virgin Plastic
Converted
Plastic Pellets
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ProblemsProblemsProblemsProblems
Shredder Residue
Automobile
ShreddersLandfill
Auto andAppliance
Industries
Plastic
Producers
ResinCompounders,
Formulators &
Distributors
Virgin Plastic
Converted
Plastic Pellets
Automobile Shredders
High cost of disposal
of SR
$20/ton tipping fees
4 million tons automobile and appliance shredder
residue disposed annually in US
$120 million cost to US auto
shredders
Difficulty removing
valuable plastics from SR
Complex process to separate materials
Recovered plastic from SR contains hard to remove
hazardous waste
920K tons of valuable plastics end up
in the landfill every year representing
$720 million per year
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ProblemsProblemsProblemsProblems
Shredder Residue
Automobile
ShreddersLandfill
Auto andAppliance
Industries
Plastic
Producers
ResinCompounders,
Formulators &
Distributors
Virgin Plastic
Converted
Plastic Pellets
Resin Compounders, Formulators & Distributors
Difficulty sourcing recycled plastic
resins that meet performance
requirements of end users
Typical recycled material from Industrial Scrap that is generated by
manufacturing processes (making parts) is inconsistent in its supply.
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Landfill
Auto andAppliance
Industries
ResinCompounders,
Formulators &
Distributors
Plastic
Producers
Virgin Plastic
Converted
Plastic Pellets
Shredder Residue
Automobile
Shredders
Shredder Residue
Automobile
Shredders
ProblemsProblemsProblemsProblems
Auto and Appliance Industries
G
reenhouseG
as emissions reductionsacross supply chain Must reach deeper into the supply chain to affect largerG
HG
reductions Virgin plastics production is a large source ofGHG emissions
Fluctuating cost of plastics Plastic prices have increased 62% over the last 2 years
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OpportunityOpportunityOpportunityOpportunity
Shredder Residue
Automobile
ShreddersLandfill
Auto andAppliance
Industries
Plastic
Producers
ResinCompounders,
Formulators &
Distributors
Virgin Plastic
Converted
Plastic Pellets
4
23% of shredder residue (920K tons annually) is recoverableplastic that can be recycled into high quality plastic resin
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OpportunityOpportunityOpportunityOpportunity
Shredder Residue
Automobile
ShreddersLandfill
Auto andAppliance
Industries
lastic
roducers
ResinCompounders,
Formulators &
Distributors
Virgin lastic
Converted
lastic ellets
Automobile Shredders
High cost of disposal of SR Plastic recovery from SR could save over $18.5 million in disposal costs in US
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OpportunityOpportunityOpportunityOpportunity
Shredder Residue
Automobile
ShreddersLandfill
Auto andAppliance
Industries
Plastic
Producers
ResinCompounders,
Formulators &
Distributors
Virgin Plastic
Converted
Plastic Pellets
Resin Compounders, Formulators & Distributors
Difficulty sourcing recycled plastic
resins that meet performance
requirements of end users
920K tons of recycled content plastic resin could be provided into the market
from SR (assuming 89% conversion rate from plastic in SR to recycled plastic
resin)
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Landfill
Auto andAppliance
Industries
ResinCompounders,
Formulators &
Distributors
Plastic
Producers
Virgin Plastic
Converted
Plastic Pellets
OpportunityOpportunityOpportunityOpportunity
Automobile
Shredders
Shredder Residue
Automobile
Shredders
Auto and Appliance Industries
GreenhouseGas emissions
reductions across supply chain
Plastic from SR could lower GHG emissions by 10 million tons per year versus virgin plastic
productionFluctuating cost of plastics Recycled plastic resins produced from SR are lower in cost than virgin plastic resins.
$20 cost savings per car on average equals $220 million savings per year in US
$0.10/lb cost savings in lawn, appliances and office equipment, $240 million savings per year in
the US
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OpportunityOpportunityOpportunityOpportunity
Shredder Residue
Automobile
ShreddersLandfill
Auto andAppliance
Industries
Plastic
Producers
ResinCompounders,
Formulators &
Distributors
Virgin Plastic
Converted
Plastic Pellets
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The market revenue opportunity for plastic resin production from
shredder residue in the US is $550 million per year.
The market revenue opportunity for oil production fromshredder residue in the US is $155 million per year.
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Plastic Co
Solution = Green EnvirotechSolution = Green EnvirotechSolution = Green EnvirotechSolution = Green Envirotech
Landfill
Shredder Residue
Recycled plastic
Converted pellets
Automobile
Shredders
Resin
Compounders,
Formulators &
Distributors
Auto and
Appliance
Industries
Shredder Residue
GETGET
OilCompanies
Recycled Plastic
CrudeOil
Converted
Plastic Pellets
Landfill
Plastic
Producers
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Management TeamManagement TeamManagement TeamManagement Team
Gary DeLaurentiis, Chief Executive Officerand Chairman35 yearsof business leadership experience
Started and ledseveral successful companiesin the plasticsindustry (Plastics II, RPX Corp,ANEW Corp, Fixcor Industries, Eco2 Plastics)
Winnerof PopularScience 2009 Top 100 Innovations award forEco2 Plastics
Lou Perches, Chief Operating Officer35 yearsof plastic businessexperience
RAB,ISO certified lead auditorGreen Belt Six Sigma
Andrew Kegler, ChiefTechnology Officerand DirectorFounded ErgonomyLLC, a chemical processengineeringcompany
Developed andimplemented the first fully automated, water free,recycled plastic finishingcleaner
WayneLeggett, Chief Financial Officerfinancial experience
FormerAssistant TreasurerforTheGoldfield Corporation
FormerPartnerin the public accounting firm of Hamrick,Leggett & Associates
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Addressing Market DriversAddressing Market DriversAddressing Market DriversAddressing Market Drivers
Shredder ResidueConverted pellets
Oil
Companies
Auto and
Appliance
Industries
Resin
Compounders,
Formulators &
Distributors
Converted
Plastic Pellets
Recycled Plastic
GETGET
CrudeOil
Automobile
Shredders
Automobile Shredders
Consistent service to
take SR at lower cost
than landfill
Co-location with shredder facilities to ensure
consistent supply for GET and consistent
material removal service for shredders
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Addressing Market DriversAddressing Market DriversAddressing Market DriversAddressing Market Drivers
Shredder ResidueConverted pellets
Oil
Companies
Auto and
Appliance
Industries
Resin
Compounders,
Formulators &
Distributors
Converted
Plastic Pellets
Recycled Plastic
GETGET
CrudeOil
Automobile
Shredders
Resin Compounders, Formulators & Distributors
Meet high performance requirements for
plastic resins set by end users
GET recycled plastic resin meets virgin plastic
performance characteristics
Stable and consistent source of recycled
content plastic resin
Long term contracts with shredders guarantee
consistent supply for Resin C, F & Ds
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Addressing Market DriversAddressing Market DriversAddressing Market DriversAddressing Market Drivers
Shredder ResidueConverted pellets
Oil
Companies
Resin
Compounders,
Formulators &
Distributors
Converted
Plastic Pellets
Recycled Plastic
GETGET
CrudeOil
Automobile
Shredders
Auto and Appliance Industries
Consistent sources of recycled
content plastics to meet recycled
content mandates
Long term contracts with shredders guarantee consistent
supply for Resin C, F & Ds
GreenhouseGas emissions
reductions across supply chain
Output from GET process creates significantly fewer tons of
GHG per ton of plastic than virgin plastic production
Price stability for plastics More stable input sources and expenses for GET lead to more
stable pricing for recycled content plastic resin product
Auto and
Appliance
Industries
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Green EnviroTech Product PerformanceCharacteristicsGreen EnviroTech Product PerformanceCharacteristicsGreen EnviroTech Product PerformanceCharacteristicsGreen EnviroTech Product PerformanceCharacteristics
Ravago, a futurecustomerofGET, performed testson the SR plasticresinfrom theGET processin June 2010.
GET plastics from SR meet orexceed all of therequired performance,quality andsafetycharacteristicsofvirgin plasticresins
GETresin met all of thecritical
automobile performance
characteristics forshrinkage,tensilestrength and flex
PCB removal process produced
concentrations (ppm) 8x below
environmental safetystandard
requirements
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Shredder ResidueConverted pellets
Oil
Companies
Auto and
Appliance
Industries
Resin
Compounders,
Formulators &
Distributors
Converted
Plastic PelletsRecycled Plastic
GETGET
CrudeOil
Revenue SourcesRevenue SourcesRevenue SourcesRevenue Sources
Automobile
Shredders
Partnership to ensure supply
of 100K tons per year of SR
No waste ownership by GET
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Share revenues
with GET from
recovered metals
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Shredder ResidueConverted pellets
Oil
Companies
Auto and
Appliance
Industries
Resin
Compounders,
Formulators &
Distributors
Converted
Plastic Pellets
Recycled Plastic
GETGET
CrudeOil
Automobile
Shredders
Revenue SourcesRevenue SourcesRevenue SourcesRevenue Sources
Ravago Corporation:
American and worldwide leader in resinproduction
Co-location planned at Green EnviroTechs
Wisconsin plant and all future GET locations
Agreement to accept a majority of the sites
resin output to fuel its network of automotive
and durable goods manufacturing clients
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Share revenues
with GET from
recovered metals
Gross Revenue
= $1980/ton PP/TPO, $1860/ton ABS
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Shredder ResidueConverted pellets
Oil
Companies
Auto and
Appliance
Industries
Resin
Compounders,
Formulators &
Distributors
Converted
Plastic pellets
Recycled Plastic
GETGET
Crude oil
Automobile
Shredders
Revenue SourcesRevenue SourcesRevenue SourcesRevenue Sources
Gross Revenue = $72/bbl
(Current price of oil less 10%
discount for market penetration)
10% of total GET revenues
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Share revenues
with GET from
recovered metals
Gross Revenue
= $1980/ton PP/TPO, $1860/ton ABS
Gross Revenue
= $1360/ton plastics produced
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Converted pellets
Oil
Companies
Auto and
Appliance
Industries
Resin
Compounders,
Formulators &
Distributors
Converted
Plastic Pellets
Recycled Plastic
GETGET
CrudeOil
Automobile
Shredders
Revenue SourcesRevenue SourcesRevenue SourcesRevenue Sources
9
Share revenues
with GET from
recovered metals
Gross Revenue
= $1980/ton PP/TPO, $1860/ton ABS
Price paid
= $2160/ton plastic
(avg)
Gross Revenue
= $1360/ton plastics produced
Current price of plastic less 10%
discount for market penetration
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Revenue SourcesRevenue SourcesRevenue SourcesRevenue Sources
Shredder ResidueConverted pellets
Oil
Companies
Auto and
Appliance
Industries
Resin
Compounders,
Formulators &
Distributors
Converted
Plastic Pellets
Recycled Plastic
CrudeOil
Automobile
Shredders GETGET
9
Share revenues
with GET from
recovered metals
Green EnviroTechOperating Cost =
$700/ton plastic
Gross Revenue
= $1980/ton PP/TPO, $1860/ton ABS
Gross Revenue
= $1360/ton plastics produced
Price paid
= $2160/ton plastic
(avg)
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GreenGreen EnviroTechsEnviroTechs Technical ProcessTechnical Process PlastExtractPlastExtractGreenGreen EnviroTechsEnviroTechs Technical ProcessTechnical Process PlastExtractPlastExtractGreen EnviroTechs platform integrates threedifferent technologiesinto a single process
ofdiscretestages:
Separation of mixed plastic by plastic type
High quality recycled plastic to be compounded to
end-customer specifications
Low quality plastic, non-tire rubber and carpet by-products recovered and
converted to high grade sweet crude oil
esin compounding to customer specifications
erformance characteristics matching virgin production methods
Separation of plastic, nonSeparation of plastic, non--tire rubber, fiber and metaltire rubber, fiber and metal from SS
emoval of CB and other contaminants from plastic
Cleansing of plastic through pressurized CO2 and co-solvent
cleaning agents
Stage 1:Material Separation
Stage 2:Liquid CO2 Cleansing
Stage 3:Classification
Stage 4:
Crude Oil Conversion
Stage 5:Compounding
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Green EnviroTechs Technology PartnersGreen EnviroTechs Technology PartnersGreen EnviroTechs Technology PartnersGreen EnviroTechs Technology Partners
Green EnviroTechsgroundbreaking businessis facilitated through licensedtechnology from world leadingrecycling technology providers
Plastic to Oil Conversion Process
Mixed waste plastics conversion into sweet crude oil
Patent pending technology
VW-SiCon and PolyFloat Processes
Plastic separation process from SR
Plastic separation by plastic resin type
Super Critical CO2 Cleaning Process
PCBs and other contaminants removal from plastic resins
Partnership: Cooperative agreement with exclusive rights in SR
Partnership: Life of patent contract with exclusive rights
Partnership: Patent contract with 10-year exclusive rights
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CompetitionCompetitionCompetitionCompetition
GEThasnodirect competition todate becausenoothercompanyinthe market hasyet developed the ability torecycle plasticresin from ASR. However,several ventures andresearchinstitutions areworking to find a solution to the problem.
GEThas addressed these potential futurecompetitors by tying up thesourcesof therequired technology through long-term,exclusive arrangementsin this particularvertical.
MBA Polymers UK Joint venture between MBA Polymers
Inc. and European Metal RecyclingLtd.
Innovative Environmental Solutions UK Ltd. - Joint venture
between Chinook SciencesLtd. and European Metal
RecyclingLtd.
Argonne National Laboratory
Funded by the United StatesDepartment of Energy
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Landfill
Future Growth PlansFuture Growth PlansFuture Growth PlansFuture Growth Plans
Shredder ResidueConverted pellets
Oil Companies
CrudeOil
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Riverbank Plant (Riverbank, CA)
Oil Drilling
Farmers and
Ranchers
AG Film
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Future Growth PlansFuture Growth PlansFuture Growth PlansFuture Growth Plans
Shredder Residue Converted pellets
Oil Companies
CrudeOil
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Riverbank Plant (Riverbank, CA)
Oil Drilling
GETGET
Farmers and
RanchersLandfill
AG Film
There are approximately30 million poundsof AG Film available to be
converted tocrudeoil nearby the Riverbank plant on an annual basis.
Usingits license agreement with Agilyx,Green EnviroTechs Riverbank plant willproducecrudeoil from AG Film at an annual rateof 15 million pounds.
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SummarySummarySummarySummary
Green EnviroTech will revolutionize the recycled plastics market by:ReducingGHGemissions by a minimum of 10mtons/year.
Massivesavings across all industriesinvolved.
Securing a consistent supplyof low/nocost raw material.
Performancecharacteristicsidentical tovirgin plastic atsignificant discounts.
Securing long term purchasecontracts with Fortune 500companies.
Locked up exclusive licensing agreements withtechnologyowners.
Sweet crudeoil is a by product ofourprocess providingsignificant supplemental revenue.
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