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Wednesday, February 08, 2012 11:47:32 AM
Chairman's Letter to Shareholders released
http://finance.yahoo.com/news/Dynamic-Energy-Alliance-pz-84657520.html?x=0
Dear Fellow Shareholders:
I became Chairman of our Company last year to capitalize on the opportunities available in recoverable products and energy generation. My background in systems integration, finance, strategic marketing and more than 30 years delivering innovation has certainly been utilized this past year as we've built the relationships, lined up the resources and merged the talent necessary to implement our goal of developing Pyrol-Black Energy Campuses(TM), being designed to transform millions of discarded tires into the high-demand commodities of oil, gas and carbon black.
A positive by-product of turning these tires into marketable and desired products will be a cleaner environment for all of us. To properly prepare for this mission, we cleaned up our own internal environment. We disposed of the perennially unprofitable and debt-laden predecessor business. We converted more than $1,500,000 in debt to equity, turning creditors into shareholders. We adopted a new name reflecting our new focus, changed our trading symbol to DEAC and affected a 3:1 split in December of last year. We entered 2012 with substantially less debt, and a true alliance of dedicated management, shareholders, engineering and finance resources who share the vision to develop plants which can recover valuable commodities from what our society throws away.
A key component of our business model is a technology called "pyrolysis." In this process, chemical decomposition of condensed substances occurs by heating material at temperatures high enough to produce light hydrocarbons and char. This is the same process that produces oil and conventional diesel fuel. A resulting substance called Pyrolytic Oil, or Bio-Oil, can be made into transportation fuels, plastics, and other products.
The specific pyrolysis technology underscoring our plans is the result of over ten years of research and development. It's in practice now on a small scale, and turns one standard-sized tire into approximately one gallon of oil, high-BTU gas, recovered steel and seven pounds of carbon black, an elemental carbon powder used in rubber and pigment production. Furthermore, it does so with about 90% less greenhouse gas emission over other tire processing systems. We anticipate our first campus' initial capacity could process over 500,000 tires a year. The most commonly sold tire size in the US is the P225/60R16, weighing about 20 lbs. With approximately 100 tires per ton, the initial plant could yield up to 15,000 barrels of oil and almost 4,000,000 pounds of carbon black per year, as well as substantial amounts of high-BTU gas and recovered steel. There are large markets for these products, and large quantities of tires (feedstock) for our operations.
Locating feedstock is simple; tire dumps and landfills seem to be everywhere. You may even have read the same news story I did last November about a South Carolina tire dump that was visible from space! We throw away about 300 million tires per year in the US, or one for approximately every person. Think of how many decades we've been driving, how much we love our vehicles and how that's not likely not to change, and you can probably picture the amount of existing and future feedstock available to our Company. We've identified sources of feedstock that are plentiful and ours for the asking.
My team and I have spent the better part of a year developing our business plan for operating Pyrol-Black Energy Campuses(TM). In support of that, we've crisscrossed the country many times to bring the smartest engineering resources together with the appropriate financial resources to implement our plan, as well as marketing, distribution and logistics talent. I'm always encouraged by the level of interest in our plans from parties, both here and abroad, who want to discuss possible licensing or joint ventures, as we expect our campuses, once developed, to be easily replicable worldwide. But, one step at a time.
We believe that, in the near future, our vision will become reality. In addition to dedicating my time and effort, I've dedicated my own money to Dynamic Energy Alliance Corporation because I believe in the vision and our team's ability to deliver on the promise this important pyrolysis technology holds. I'm not just a Chairman; I'm a shareholder, and I'm confident we can bring together the right intellectual, physical and human assets to create long-term value for the Company and its shareholders, as well as long-term benefits for society.
I look forward to reporting further on our efforts and results to you as we continue to move forward.
Thank you,
Charles R. Cronin, Jr.
Chairman
Dynamic Energy Alliance Corporation
http://finance.yahoo.com/news/Dynamic-Energy-Alliance-pz-84657520.html?x=0
Dear Fellow Shareholders:
I became Chairman of our Company last year to capitalize on the opportunities available in recoverable products and energy generation. My background in systems integration, finance, strategic marketing and more than 30 years delivering innovation has certainly been utilized this past year as we've built the relationships, lined up the resources and merged the talent necessary to implement our goal of developing Pyrol-Black Energy Campuses(TM), being designed to transform millions of discarded tires into the high-demand commodities of oil, gas and carbon black.
A positive by-product of turning these tires into marketable and desired products will be a cleaner environment for all of us. To properly prepare for this mission, we cleaned up our own internal environment. We disposed of the perennially unprofitable and debt-laden predecessor business. We converted more than $1,500,000 in debt to equity, turning creditors into shareholders. We adopted a new name reflecting our new focus, changed our trading symbol to DEAC and affected a 3:1 split in December of last year. We entered 2012 with substantially less debt, and a true alliance of dedicated management, shareholders, engineering and finance resources who share the vision to develop plants which can recover valuable commodities from what our society throws away.
A key component of our business model is a technology called "pyrolysis." In this process, chemical decomposition of condensed substances occurs by heating material at temperatures high enough to produce light hydrocarbons and char. This is the same process that produces oil and conventional diesel fuel. A resulting substance called Pyrolytic Oil, or Bio-Oil, can be made into transportation fuels, plastics, and other products.
The specific pyrolysis technology underscoring our plans is the result of over ten years of research and development. It's in practice now on a small scale, and turns one standard-sized tire into approximately one gallon of oil, high-BTU gas, recovered steel and seven pounds of carbon black, an elemental carbon powder used in rubber and pigment production. Furthermore, it does so with about 90% less greenhouse gas emission over other tire processing systems. We anticipate our first campus' initial capacity could process over 500,000 tires a year. The most commonly sold tire size in the US is the P225/60R16, weighing about 20 lbs. With approximately 100 tires per ton, the initial plant could yield up to 15,000 barrels of oil and almost 4,000,000 pounds of carbon black per year, as well as substantial amounts of high-BTU gas and recovered steel. There are large markets for these products, and large quantities of tires (feedstock) for our operations.
Locating feedstock is simple; tire dumps and landfills seem to be everywhere. You may even have read the same news story I did last November about a South Carolina tire dump that was visible from space! We throw away about 300 million tires per year in the US, or one for approximately every person. Think of how many decades we've been driving, how much we love our vehicles and how that's not likely not to change, and you can probably picture the amount of existing and future feedstock available to our Company. We've identified sources of feedstock that are plentiful and ours for the asking.
My team and I have spent the better part of a year developing our business plan for operating Pyrol-Black Energy Campuses(TM). In support of that, we've crisscrossed the country many times to bring the smartest engineering resources together with the appropriate financial resources to implement our plan, as well as marketing, distribution and logistics talent. I'm always encouraged by the level of interest in our plans from parties, both here and abroad, who want to discuss possible licensing or joint ventures, as we expect our campuses, once developed, to be easily replicable worldwide. But, one step at a time.
We believe that, in the near future, our vision will become reality. In addition to dedicating my time and effort, I've dedicated my own money to Dynamic Energy Alliance Corporation because I believe in the vision and our team's ability to deliver on the promise this important pyrolysis technology holds. I'm not just a Chairman; I'm a shareholder, and I'm confident we can bring together the right intellectual, physical and human assets to create long-term value for the Company and its shareholders, as well as long-term benefits for society.
I look forward to reporting further on our efforts and results to you as we continue to move forward.
Thank you,
Charles R. Cronin, Jr.
Chairman
Dynamic Energy Alliance Corporation
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