Plastic2Oil Inc (PTOI)

[MorningLightMountain]

Plastic RFP John Condino

The County sent out an RFP seeking a possible plastic-to-oil company to locate at the Buyea Rd. Landfill Agriculture and Renewable Energy Park (ARE Park). Five proposals were submitted. Four (4) are under consideration. One, from JUM Global, was submitted late and returned.

Eve Ann Schwartz asked, "Are we losing an opportunity here?" The County has been meeting with JUM for several years now and the committee was unsure of why their proposal was submitted late.

J. Condino said, the submitted proposals fell into two categories.

Delta Thermal Energy Inc. and Zero Waste Energy LLC call for zero waste solutions. They indicated a need for 300,000 tons a year of total waste. They claim to take care of all MSW with varied output. This would mean Madison County would become the center of waste processing for the entire north east. This is a technology that is not in operation in US and there is no evidence of anything in any other place, explained Condino.

K. Hicks and the other committee members came to an initial conclusion that this is not conducive with Madison County's plan.

Condino said that at this point we are rejecting those 2 proposals. There was a discussion as to whether the two rejected proposals should receive notice now and continue to move forward with the other two or send letters all at once. Nichole Farino, Purchasing Director said, "there is no legal stand as to which way is right, but normally we do all letters at the same time."

According to J. Condino two of the proposals are more in line with two of the County's request for processing non-recyclable plastic. Gen2, LLC has a process in California that they plan to have online by the end of 2016. They also have a pilot in South Africa, processing about 4,200 tons a year of non-recyclable plastic. They have to grind plastic to feed a 24-7 operation and put out 1 mill gallons of diesel fuel #2.

Madison County's needs are about 700,000 gallons per year and that includes schools, Madison County's Highway Department, and the Dept. of Solid Waste.

His recommendation was for the County to hold a follow up interview with that company.

The second company, Golden Renewable Energy, in Yonkers, NY processes 7,500 tons a year and produces heating oil. They indicated that 1.4 million gallons is heating oil and would have to be under contract before they are comfortable. They want the County to provide all permitting and site work.

K. Hicks noted that their tone was interesting.

J. Goldstein asked if having the County provide permitting and site work was that in the specifications. K. Hicks, said, "No."

The claim is they are under production in Yonkers. According to their proposal it appears to be an interesting and viable process. This company might be worth a site visit on May 9 to do a follow up interview; go there and touch, talk and see.

Chairman J. Goldstein addressed the committee regarding Golden Energy. "You have a company that thinks Madison County is going to do the permitting and they don't make diesel fuel, they make heating oil; Low sulfur heating oil. This does not fit into our goals. We have to sit down and talk to them. They will produce what we need! What is the cost of putting in additives?"

J. Condino said the field trip committee members are Jim Zecca, Kipp Hicks, John Condino and Bill Buchan.

Those going on the field trip need to address specific questions. K. Hicks noted that Golden realizes this is a 120 process. "We will let them know what we can and can't do and will and will not do."

Addressing the committee, Director Zecca said, "This is a negotiating process, similar to what we did with the County's solar project.

JUM Global was a late proposal that was rejected.

JUM's feed process is bulk loaded. They claim their catalyst produces a high spec fuel. - get petroleum industry on board. Their proposal did not have as much detail as some of the others

- a modified catalyst.

After interviews with others we may get to a point where we might want to reject all proposals and start over. J. Goldstein said he ran the numbers and found JUM had a better output for the product the County is interested in. He agrees we should check out Golden, but gets the feeling JUM is better than the others.

Grant Money from DEC -

Grant money from the NYS DEC would provide $80,000 in a plastic feed stock feasibility study. This study would help confirm feed stock availability in and around Madison County and would give the county an opportunity to determine the extent of this material and its availability.

Capital For A Day - half of promised grant funds are now going to Onondaga County's food diversion program. The other half of the fund will be used to fund a plastics stock feasibility study.

All of the plastic to oil companies Madison County talked to are concerned with how much feed stock in the region is available. The DEC said they will fund a study. It could take months to go out for a competitive bid process. Dr. Rolland's said they have a contract with Parsons Engineering of Syracuse. We need to modify and do the survey quickly. Director Zecca will add to information and give this information to his contact. Further information would greatly increase the county's chances of finding a plastic to Oil Company willing to locate at the ARE Park and would greatly enhance a new RFP giving the committee another option.

However, the committee felt a field trip to Golden Energy in Yonkers was still a viable option.

K. Hicks said the committee needs to quantify a feasibility study (within a given radius) as to the amount of feed stock available in that radius.

J. Condino said, the more we talk with these companies the more we learn and the ability to put out an enhanced RFP (more comprehensive) is a valuable tool for Madison County.

Chairman J. Goldstein felt the group should do the field trip ASAP.

Chairman Goldstein noted that if the committee were to reject all bids JUM could be back in game.

Three reasons to reject #2 right away said R. Bargabos.

1. They want the County to provide all of the permitting

2. Purchase all output

3. Structure deals with neighboring counties.

He also suggested that Attorney Buchan not attend the first visit to Golden Energy. We don't want to pay his hourly fee if it is not the company we want, said Bargabos. The committee did not agree.
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Extract from -
madisoncounty.ny.gov

https://www.madisoncounty.ny.gov/sites/default/files/supervisors/june_2016.pdf