EcoloCap Solutions Inc. (fka ECOS)

[deal guy]

Update on LSR/ECOS Field Trip

Was quiet yesterday (Saturday) at the California Avenue facility. With the residential routes not running on Saturday site had less than 25 people on site and mostly large trucks entering and leaving the site (not waste trucks). Interestingly the person at the gate asked if I could park my car outside the gate for safety reasons. No such requirement when I went before on a Friday. The site is a narrow strip of land in an industrial are just north of the Stevenson expressway. Most of the businesses are very light industrial or construction related.

There were some people over working by the digester. I was asked not to go in there as it was an active construction site. I was able to get about 25 feet from the equipment. They appeared to be observing. The organics aborting area was empty. This would appear to be a Monday to Friday operation.

The digester appears to be operating. The employee told me that they expect to complete testing in mid-November. This ties back to the acceptance period per the contract. I asked him whether it was operating on spec, He suggested I ask that question of corporate (which I will do on Monday).

I did get a chance to see the output. It is a brown powdery substance. asked the employee what the output of the system was and he said it was compost. It would not appear to be a fertilizer in a commercial sense. I based this conclusion on my 35 years working with an in the ag chem and fertilizer space. Based on the material and its smell and feel, it likely does not have the necessary nitrogen, phosphate and potassium content to be sold as fertilizer. My best guess is that they plan to wholesale this to landscaping companies. This is what they do with a lot of their wood chips from tree recycling.

The employee told me that they run their organics recycling business from early Spring to mid-November. This is consistent with how their contracts run with municipalities. LSR has suspended their organics recycling during winter months. It has nothing to do with the equipment as the number of moving parts exposed to the elements are not significant. The employee told me it is likely that they will cycle down the machine in winter as they will not be running the recycling business. He told me this is a corporate decision and the project is a corporate project.