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If you are a producer or collector of scrap plastic and you can sell properly sorted scrap plastic for say 30 to 50 cents per pound then the operator of a CLNV plant will need to PAY to get the material. No tipping fees would be received by CLNV. The reason that plastic scrap is so high as it is a practical feedstock alternative to using virgin oil or pellets.
Never said they would go away. Single use shopping bags are almost gone in the EU and Canada. Single use straws have gone back to heavy paper. Plastic food service containers and foam trays are being replaced with cardboard. The six pack plastic rings are being phased out in those countries as well.
Many countries are also banning single use plastics. With high oil prices, precision sorted plastics command several hundred dollars per ton to recyclers as recycled materials are a better buy that virgin oil or pellets. How do you compete to get the feedstock?
Most of the ocean borne plastics comes from river systems in Asia. The issue is more of lax waste disposal education, collection and processing systems. Some larger sources are fishing nets and ropes which accumulate in the great pacific gyre. Education, moral attitudes and systems have eliminated most of the water border waste in the EU.
If you have done your own due diligence, you would already know their names. Three are Japanese, two are American, two in the EU and two that operate in multiple countries. They take a broader waste management handling strategy by taking in plastics plus even though their processes can handle solely plastics. Where there is a market for CLNV systems is in smaller countries or where the logistics is difficult to handle larger volumes.
There are a number of large WTE technology providers and operators. Some are in the pyrolysis and plasma space over clean incineration. Three that come to mind are public entities.
Unfortunately, there are some big names that can take plastics and convert them to power, low carbon fuels and hydrogen already in operation. There are also firms that make the equipment with solid financial backing and technology.
While plastics are good for some products, the company cannot compete with Greta and others like her. In Canada, Walmart no longer gives out single use bags. You need to bring your own. Paper bags have reappeared. Cloth bags are wide spread. I use heavy cloth bags as they are reusable and can be cleaned easily.
The generation of plastic waste will fall in most western economies as policies and consumer interests shift to multiple use or less harmful means of packaging. Furthermore, there are several plants under development with well capitalized developers and equipment providers in those markets. Clean incineration, pyrolysis or plasma is already out in the market. The question that needs to be asked is how can our company compete without projects of scale and financing? Likely, the only markets where we have a chance for the lion's share are smaller countries. There are already major players going into India as well.
We are not going to dig up landfills to get plastics. Plastic shopping bags, drinking straws, six pack beverage rings, Plastic and foam clam shells will be gone from major markets in five years. The soda companies are working on dissolving bottles. There are already dissolving potato chip bags in use. Hard to recycle hard plastic bottles are already being replaced with pouches. There will be a shift to different plastics, paper and glass. Plastics will not disappear but the total generation of new Plastic waste will fall. There are plants in various stages of development and construction that will deal with broader wastes through clean incineration, pyrolysis and plasma.
There is a difference between generation of waste, recycled and what is exported, incinerated and landfilled. With individual states curbing new generation and other firms developing new WTE plants the amount of true landfilling will fall.
I wonder how much cash changed hands or restricted shares were issued for the video. This is very much in the mold of vanity press.
What did impress me is that Dan explained pyrolysis in a way that a non-technical person could understand.
If you check the link to the video, it is an old one.
We are not going to dig up landfills to recover buried plastics as that would release an unprecedented quantity of carbon monoxide, carbon dioxide and methane. Ocean borne plastics are primarily driven by Asiatic rivers acting as a sewer (poor public education on waste disposal) and broken fishing nets. If we wanted to encourage recycling of tetrapacks, water and sport drink bottles, there should be a refundable deposit. However, can the working poor in an inflationary spiral afford it? The politicians will not support it.
From a business perspective, you need about 100 nt per day per plant to generate enough revenue to offset certain fixed costs outside of capital costs. We plan to get there but we have not.
As for capital funding, credible funders look for commercialized technology and the management team to run it. Skin in the game dor new projects does go a long way to cement interest.
Item 3 - Vendor supplied plastic bags have disappeared from the Canadian retail scene. Europe is well ahead of the curve. You either bring your own reusable bag most of which are woven cotton which the retailers sold to customers over the previous few years or kraft paper bags like in the 1950's. KFC uses only paper bags here. Ditto for McD's. As a dog owner, I used the previous plastic carryout bags to pick up after my dog. Now, I need to buy them. Even the use of garbage bags in most cities is down to one per house per week with the goal to get it to one bag every 2 weeks.
As for Item 1, Canada and the EU.
More to follow.
We need to keep things in proper perspective:
1. Many countries have banned or are phasing out single use plastics such as cups, lids, straws, clam shells and six pack rings.
2. Beverage companies have started to invest in for what can be described a self dissolving bottles.
3. Large grocery store chains and general merchandisers no longer provide plastic bags at the check out.
4. There are other larger, proven and better capitalized manufacturers of WTE systems including those that can make hydrogen and low carbon fuels.
5. While hydrogen is the buzz word for some alternative energy sources, there is a material absence in the transportation, storage and delivery of H2 - a real bottleneck with no short term solution.
6. The prevailing opinion is that the price of liquid hydrogen will fall by at least 75% within ten years as technology is deployed. This raises some question for the business model for H2 developers. Yes, demand will be higher but the added supply will outstrip the demand.
Most start-ups fail.
Our effective competition has been in the business longer. They have better connections to capital and the end users. We might be making a Rolls Royce but if the buyer only wants a car then what is the true potential. The industry as a whole is promising but our part of it will be challenged until we or our clients get serious capital on the table.
Revenue can only happen when either the Company or its clients can convince others to part with their capital to purchase systems. With other larger and better financed firms out there, it will become an up hill climb. Project developers who seek third party funding generally will be encouraged by bankers to look at proven technologies and real world plants. Small plants or prototype facilities do not attract the big banks or family offices. Clearly, without capital there is no revenue.
There is an uncanny parallel between the history of BGMO and CLVN. Same sh*t, different day.
Every month, announce a new project to pump the stock. No one ever looks back at the litany of press releases or paid media hype for what was actually delivered
The press release does not say if either party is required to find the cash for the project. Plant site based press released mean nothing unless the company, its JV partners or clients can deploy the capital for the build out. A 350 tpd plant or plants in aggregate to that tonnage does not come cheap. So far, our financial statements show that we can raise a million through dilution. Now, for a hundred million over time could be a leap.
Twenty tons per day is still small in the grand scheme of things. It will generate some revenue but very little cash flow. The question is whether or not this small project can leverage real capital to the company or its clients. Many banks shy away from early stage project financing as the developers have typically not constructed or operated a plant of commercial scale with having put in new cash beyond mere R and D.
What you say makes sense.
However, it is also true that the litany of failed attempts and the official disclosure that certain projects are dead, indefinitely deferred and the like goes to the question of ethics and transparency. It comes across more as a magicians show than a business at times.
How many MOU's have gone dead or dormant?
Canada, like a number or other countries, have banned single use plastics. There will be no cradle to grave emissions to worry about. So, the potential market is shrinking.
Those that are valued over a billion have a pedigree of R & D, manufacturing and sales which is well above CLNV
I said nothing about social media accounts. The idea of the timely and thorough dissemination of news via an invitation to call IR is problematic. This action suggests that the first to call in would have access to potential inside information assuming that it was real information as opposed to hype.
It stands to reason that the information is more of a PR move than through dissemination of news. Any official statement should be press released and available to every shareholder. Otherwise, you have the question of insider information.
There are already plastic and tires to oil plants in operation throughput Asia. Many are closed loop with no emissions.
As for Morocco, when you consider the fervent observance of religious days of observation and reasonable maintenance time, you end up with a lower input tonnage.
Twenty tons per day should yield about 2000 to 2500 gallons of diesel per day assuming it is tank ready. Assuming a five day week and 50 weeks per year, this amounts to 625k gallons. When you take the current price per US gallon in Morocco and back out the VAT, the gross revenue to the retailer is 3.1 million USD. There will be costs associated with producing and distributing the fuel. Depending on the structure of the distribution, the net revenue to the machine might be slightly over 2 million per year. So, how much was the cost of the equipment including the refining element for tank ready fuel?
Before there is revenue, either rhe company, a JV partner or a client needs to raise the funds to acquire the equipment.
The disclosure of company information to shareholders who call in could be considered insider or privileged information if it has not been disclosed to all of the shareholders through a press release or as part of the financial statements. The failure to disclose via official channels is problematic.
A transfer agent will have the name and address of each shareholder. They do not have phone or email addresses. If the shares are held by a broker, the broker will, at the request of the underlying shareholder, provide the company with the name and address of the beneficial owner. Information that is sent to shareholders includes the financial statements and proxy materials. Press releases are distributed via media and not to the shareholders.
Was there an updated press release for Ecuador, the DRC or the Cameroons? What happened to exploring the UAE.
Has there been any official word that Sri Lanka is dead yet? Our company never says that previously press released projects have be canceled or deferred. We just go silent
The capital cost for a 150 tpd plant is not insignificant. There is also the need for cash for all contingency costs, closing costs, interest during construction and working capital.
Has the company actually closed a financing of this size so far?
The Indian Contract Act of 1872 is the governing law for MOU's. Basically, an MOU is not enforceable unless certain the five key factors making a contract are clear on offer, acceptance, consideration and so forth. Language is also key. If the wording uses firm language like will or shall, it demonstrates binding. If it uses may be or can be, it is not binding.
Hydrogen is easy to produce but much harder to transport, store and distribute. It is the latter part that poses the greatest challenge for wide spread use of hydrogen. Wind, solar, batteries and to a lessor degree fuel cells will be the more likely play.
If we are talking about propane and natural gas as being interchangeable with hydrogen, it is not that easy. Propane for heating is used in remote and rural settings where natural gas is not available. It stands to reason with the population density that hydrogen pipelines and storage depots will not be developed. Anyone who has a BBQ knows that the handling and burners for propane and natural gas are different. So, we need to be certain that the flexibility of the systems are real. As for hydrogen, it would require new piping and storage. This is one of the reasons that hydrogen distribution may be limited to larger city gas stations where you danger propane, LCFS fuels, conventional fuels and battery power. Hydrogen would be a logical extension but you will require a large property for the energy station.