BUSINESS Global Clean Energy, Inc. (GCEI:OTCPink) is a Maryland publicly traded cleantech corporation with its’ corporate offices in Houston, Texas developing and marketing proprietary technology in waste to energy management and feed stock conversion. The company’s SIC code is 2860, and its IRS taxpayer id is 84- 1522846. The company since becoming public in 2008 has been able to adapt to so many changes in the marketplace. Our work with UK Coal provided the company with a vortex pumping system which we have proven to work and when UK Coal could no longer proceed with their cleanup, the company immediately received funding to develop and test a pryolisis system. It works but the profit margins in the present market conditions do not meet our criteria. With a multitude of technologies to choose from (bio, solar, wind, geothermal and hydrogen energy) for companies (and investors) whose success relies on choosing the “right” technology, the gamble is great. The company determined that profit and best rate of return revolves around control of feedstock and long term off take agreements and that is our ongoing focus. By contrast, over the past 9 years Global Clean Energy has kept its focus on waste recovery and has developed two complementary technologies to salvage and reform waste from a variety of sources to produce a variety of clean energy byproducts. Consequently, with a growing world-wide commercial and industrial need for these technologies, GCE is largely insulated from the inherent volatility of a reactive market. Moreover, GCE is well-positioned to exploit fully the opportunities presented by the government policies and programs that are setting the agenda for the alternative energy industry even with the pricing pressure.
North American Market and Drivers In the U.S., the field of waste management is becoming more closely aligned with resource management, and this is in large part because the way we view “waste” is dramatically shifting. New technologies are being developed that allow more materials to be recovered and new value created from those materials. Much more of our waste stream is considered to be valuable scrap material and new technologies such as automation for materials separation are allowing the industry to tap into these resources and create value out of what was previously considered non-valuable material. Conversion technologies, specifically those designed for plastics and tires, offer the same potential to create value for landfills. Tires to Fuel (TtF) technologies offer the potential to manage landfill-bound tires as a resource to create a valuable alternative fuel source. At this time, a large portion of the tire and plastic waste streams is still treated as “waste,” and there is a large opportunity to recover more of the tires and plastics we use in the United States. Return on investment (ROI) is generally quoted at two to five years if all cost conditions and product pricing hold steady. Factors that could impact the length of ROI include changes in energy costs, price of oil and fuel, and cost and availability of scrap tires. However, due to the abundance of unrecovered and non-recycled scrap tires, the last condition will likely not be a factor on ROI timeframe for some time. 8 Outside of North America, three key drivers have supported commercialization of TtF technology: rapidly diminishing landfill capacity, a strong push to increase diversion and materials recovery, and the drive to find value in non-recycled materials. These fundamentals are quickly taking root in North American markets. While these three factors that have led to investment in commercialization of pyrolytic technology abroad, these factors have played a smaller role in shaping the waste management landscape in North America. However, other drivers in the United States could play a role in increasing the commercialization of pyrolytic technologies for non-recycled plastics and tires. These include an ample supply of non-recycled scrap tires and plastics, economics of avoided landfill tipping fees, and the growing demand for less expensive, alternative fuel products.
GCE Model With a compelling pipeline of market opportunities presently existing in the United States, the Company is finalizing agreements in prime US markets with major waste plastics and waste tire suppliers to acquire the rights to install pyrolysis systems on their facilities, which allow for the waste plastics and tires to be converted into alternative, low emission fuels such as diesel, and syngas, on their facilities. Each of the feedstock operations has numerous sites available to the Company which will increase GCE’s development pipeline of multiple projects extending into the next decade. The Company is in discussions with Fortune 500 manufacturing corporations for the engineering procurement and construction (EPC) of the facilities. The EPC will be providing performance guarantees for their work on the development projects, allowing Global Clean Energy Inc. to bring in-line, term financing commitments to secure the construction. GCE focuses on proven pyrolysis systems allow for the waste plastics and tires to be converted into alternative, low emission fuels such as diesel, and syngas; the utilization of its technology relationships, and the use of its extensive network of service providers and technology specialists, all working as a team to quickly improve upon existing technologies and develop a suite of next-generation technologies. The company partners with F1000 companies to control gasification technologies with other complementary processes. GCE partners with Fortune 500 companies as capital partners, project development partners and EPCs providing performance guarantees to our renewable energy projects. Projects include the design and build of process skids, automation architecture, software, power control and engineering and start-up services. GCEI has the ability to deliver scalable, complex solutions on a global level. GCE is focused on 5 key development and plant investment principles: 1. Controlling Feedstock 2. Aggregating waste-to-energy conversion technologies 3. Developing alternative fuels with F-500 EPC and O & M companies 4. Providing development capital utilizing EPC backed technologies with performance guarantees 5. Generating high IRR 9
Technology Overview Pyrolysis systems are based on 30 ton module designed to convert approximately 9,900 tons of end of life tires or waste plastics annually, specifically targeting polyethylene and polypropylene, to produce in excess of 3.1million gallons of liquid fuel including diesel. Plastic waste and End of life tires are continuously treated in a cylindrical chamber and the pyrolytic gases condensed in a specially-designed condenser system to yield predominantly straight chain aliphatic hydrocarbons with little formation of byproducts. These hydrocarbons are then selectively condensed and cleaved further to produce the average carbon chain length required for distillate fuel. The plastic and tires are pyrolized at 370 ºC-420 ºC and the pyrolysis gases are condensed in a 2-stage condenser to produce a low-sulfur distillate. (Pyrolysis is a process of thermal degradation in the absence of oxygen.) The system consists of stock in-feed system, pyrolysis chambers, contactors, distillation, centrifuge, oil recovery line, off-gas cleaning, and residual contamination removal. Plasma arc smelting technology will be used for the PGM business. GCE has agreements with the world’s leader in plasma smelting technology. The Plasma Arc Furnace has been smelting PGM for 30 years while the proprietary plasma technology has been operating in over 80 plants worldwide since 1964. The Plasma Arc Furnace which will be acquired by GCE is the most efficient smelter in the world with recovery rates of over 99%.. The modular design allows for quick and efficient expansion by adding another module to the existing infrastructure as our business expands past the first plant volume. Global Clean Energy, Inc. is well positioned to take advantage of the tremendous opportunities in the alternative energy industry due to its technology, project development approach and financial engineering expertise. The Company is structured to be a low-cost supplier in its selected market niches and will be positioned to survive periods of market weakness and to thrive during market expansions.
FIRST QUARTER UPDATE: As outlined in the company’s annual report, progress is developing on the ongoing projects. A detailed update will be issued in the form of a news release within the next ten days of the filing of this quarterly report. Government Regulations, Environment and Permits Our technologies are subject to compliance with United States federal, state and local environmental, health and safety laws and regulations. These regulations govern operations and use, storage, handling, discharge and disposal of a variety of substances. For instance, under CERCLA, we could be held jointly and severally responsible for the removal and remediation of any hazardous substance contamination at our facilities, at neighboring properties (where migration from our facilities occurred) and at third party waste disposal sites. We could also be held liable for any consequences arising out of human exposure to these substances or other environmental damage. We may incur substantial costs to comply with these environmental, health and safety law requirements. We may also incur substantial costs for liabilities arising from past releases of, or exposure to, hazardous substances. In addition, we may discover currently unknown environmental problems or conditions. The discovery of currently unknown environmental problems or conditions, changes in environmental, health and safety laws and regulations or other unanticipated events could give rise to claims that may involve material expenditures or liabilities for us.
Global Clean Energy Inc :GCEI
