[SPN-Discussion] Greentech Investors Forum: April 10: Replacing Coal in Cement Kilns with Recycled Plastics and Paper

Gelvin Stevenson gelvin.stevenson at gmail.com
Thu Apr 2 16:43:54 PDT 2015

*Evolution Environmental Group (E2) Process Engineered Fuel (PEF) to
Replace Coal in Cement Kilns*

Evolution Environmental Group, LLC (“E2”) provides alternative processed
fuel solutions to cement and other high-energy use industries. E2’s
expertise is in processing solid waste (primarily non-recyclable plastic
and paper) into a high Btu content fuel known as Processed Engineered Fuel
(“PEF”), primarily designed for and sold to cement manufacturers to be used
in lieu of coal in firing kilns.

Date: Friday, April 10, 2015

Time: 8:00am – 10:00am

Organizer: Gelvin Stevenson, PhD

Sponsor and Host: Crowell & Moring. LLP

Location: 590 Madison Ave. at 57th Street, southwest corner, 22nd floor

*The PEF Industry*

PEF is residual solid waste, primarily paper and plastic, which has been
processed into a usable fuel.  Unprocessed residual solid waste is
typically deposited in landfills at a cost of $30 to $80 a ton. E2 believes
that offering residual solid waste contractors a 20% discount to their
current tipping fees guarantees an adequate supply of feedstock for a PEF
process plant.

Cement kilns consume a tremendous amount of energy.  Typically they burn
either coal or natural gas.  Many plants can burn other fuels such as
hazardous waste, biomass, used tires or oil.  Fuel choices depend primarily
on Btu values, replacement costs, emissions and operations.  Each situation
is different but the dynamic is the same; a cement kiln burns a ton of
coal, but that ton of coal can be replaced by a ton of PEF at half the
cost. Since energy is the largest cost of a cement plant, these savings can
be significant.

PEF is an established industry in Europe, having started approximately
fifteen years ago.    The equipment, processes and technical compliance are
well established.  The economic drivers in the Europe are the same as in
the U.S. except more so: increased tipping fees at landfills and high
energy costs, the first being driven by the lack of land and the latter
being the lower amount of coal. But as of yet, there are no large PEF
plants in the US.

*The Company*

E2 was founded in 2006 and is headed by Herb Case.  Previously, Mr. Case
helped establish the industry of cement kilns burning hazardous waste. His
company named Cemtech was sold to a JV between Waste Management and Holcim
Cement, two of the world’s largest companies in their respective industries
of waste disposal and cement. At the time it was operating seven plants
across the US. He has been active in Europe where he first consulted
regarding alternative fuels and then headed up the building of a Bulgarian
PEF plant for a cement producer.  Mr. Case is supported by Ed Morton, a
cement industry professional who assisted in the building of the Bulgarian
plant, has worked on the America cement PEF project and headed up the
alternative fuels effort for Heidelberg Cement one of the world’s largest
cement producers.

Register at Greentech Investors Forum, April 10: EE Group

Or contact Gelvin at gelvin.stevenson at gmail.com.

*The South Florida Project*

For the last year, E2 has managed the provision of PEF to a cement plant in
South Florida. This included overseeing the processing, delivery and
burning of the PEF. In 2014, the cement plant burned over 6,000 tons of PEF
reaching a level of eight tons per hour.  The cement plant owner has a long
history of working with E2 and has utilized PEF at its other facilities. It
requested that E2 develop, construct, manage and own a PEF production
facility directly adjacent to its kiln. E2 is securing multi-year contracts
for the PEF production off take and supply contracts for the requisite

Once constructed and processing 250 tons of PEF per day, the South Florida
facility operating at 10 hours a day, 250 days a year (one shift), is
expected to yield revenue of about $5 million, split about equally between
tipping fees and PEF sales, and achieve an operating margin of some 60%.

GIF thanks Investors Circle for its generous support, Geoff Miles and Chino
Maduagwu for developing and operating GIF’s video, social media and design
capabilities, Tonia Popke for her financial expertise, and Jesse Goldstein,
PhD, for his continued assistance.


The company is raising $150,000 in limited liability units to initiate
construction activities such as site preparation and engineering as well as
equipment purchase deposits for the S. Florida facility

With the completion of the assessment and preparation phase, E2 will have
secured equipment purchasing and contractors to have a fully functioning
facility within 9 months of breaking ground. It is expected that the total
cost of the facility, including equipment, construction and ramp up to be
$8.5mm. This S. Florida facility will be a stand-alone legal entity. The
sources for this $8.5mm are being confirmed and expected to be equipment
finance companies, and project-related lenders.

The company believes that once positioned as the initial domestic PEF
player it will be in an advantageous position to build at least 10 and
possibly as many as 25 processing facilities over the next decade.


*Compelling model for energy savings and environmental impact*

The company sources feedstock from multiple suppliers of municipal solid
waste (MSW) whom save significant amounts in lieu of taking waste to
landfills.  The waste is processed into a fuel (PEF).  The fuel is sold to
cement kilns for use in lieu of coal.  The energy savings based on Btu
equivalency can be significant, upwards of 50%, for the cement kiln.

*Long Term Contracts for Supply and Off Take*

E2 will have in place both feedstock and PEF supply contracts prior to
finalizing premise lease and equipment purchase.  It is anticipated that a
local MSW hauler will be the primary feedstock source although E2 will have
the ability to bring in other feedstock.

*Proven Technology and Processes*

E2 has built a PEF plant at the cement producer’s Bulgarian
facility.     There are a number of PEF plants in Europe.  The ability to
erect a facility takes a combination of cement operations know how,
equipment understanding and art.  The technology and equipment have been
developed over the last fifteen years in Europe.

*Experienced Effective Management Team*

E2’s senior management has unparalleled experience in successful assessing,
designing, constructing and operating PEF facilities for cement producers.
In particular for the S. Florida cement plant owner, E2 has provided
extensive support over a number of years in the management of all aspects
of the PEF production, supply and quality control program for this owner.

Disclaimer: The Greentech Investors Forum (GIF) is not soliciting funds for
the presenting companies, nor is it encouraging parties to invest in them.
We try to find good companies—not necessarily good investments. They have
been advised on what is acceptable in terms of predicted results, but GIF
takes no responsibility for what they actually do, say, or how they perform
in the future.

*Security:*              If there is a problem at the Security Desk, please
contact Ellen Reilly at (212) 223-4000 <%28212%29%20895-4265> (first
choice) or Gelvin Stevenson at 917-599-6089.

*Fees:*                 $50, payable ahead of time or at the door. Cash or
checks and credit cards accepted.

$25 for call-in. Registered call-ins will be emailed the call-in numbers
and, if available, the slides to be presented.

                        $25 for members of Affiliated Groups

                        $20 for students and faculty.

 *Agenda:*           8:00 to 8:30  -     Networking

                        8:30 to 8:40  -     Introductions

8:40 to 9:10  -     Herb Case, Founder, President and CEO

9:10 to 9:30  -     TBA

9:30 to 10:00  -   Discussion

To register, visit this Eventbrite site Greentech Investors Forum
send your contact information to Gelvin Stevenson at
gelvin.stevenson at gmail.com or 917-599-6089. And contact Gelvin If you have
questions or need more information.

*Herbert Case, President & Chief Executive Officer* is E2’s founder and has
been associated with the creation and successful implementation of
waste-derived alternative fuel programs at cement kilns throughout the US
and Europe for over 35 years.  These initiatives created sustainable,
beneficial use solutions for large energy users, waste service companies
and private and public sector waste generators.  The typical project format
was Design, Build, Finance & Operate (“DBFO”) at the energy user site, and
providing “win-win” results to stakeholders and helped establish the
mainstream business model for alternative fuel use as a partial replacement
for burning fossil fuels as a viable environmentally friendly alternative
to landfill and commercial incineration on a global scale.

Mr. Case founded a start-up, CEMTECH, Inc., in 1980 in the US from several
related service providers and led the company into being one of the
nation’s market leaders for the collection and preparation of hazardous and
non-hazardous wastes into alternative fuels and raw materials, used in
cement kilns as a substitute for conventional fuels.  This included
identifying and developing the human and technical resources to carry out
the growth and maintenance of business activities and ongoing project
management in difficult environments.  During this period Mr. Case was a
charter member of the National Association of Solvent Recyclers (“NASR”)
and the Cement Kiln Recycling Coalition (“CKRC”) in Washington, DC (still
active) to help foster this work in the US.  CEMTECH was acquired in the
early 1990’s by a partnership of Chemical Waste Management, Inc., a unit of
Waste Management, Inc. and the Holcim Group, a leading global cement
producer, creating the largest alternative fuels business in the US at that

After a transitional period, Mr. Case left CEMTECH for another start up,
CEVA INTERNATIONAL, Inc., a US environmental services and alternative fuels
development company with subsidiaries in the Czech Republic, Hungary and
Romania.  The company was a “hands on” multi-disciplined service firm for
the transfer of proven know-how and capital assets to assist in the
remediation of environmental damage caused by decades of abuse in former
Soviet Bloc countries.  As a result, contaminated soils were restored to
value and wastes were converted into cleaner and cheaper fuels for
utilities and cement plants in the region.  The model was to import
equipment and know-how from the US to apply proven recycling and cleanup
techniques for the beneficial use of wastes generated from public/private
sources or stored in lagoons from historical activities.  CEVA entered into
definitive agreements to create alternative fuels businesses with
HeidelbergCement in Hungary and joint alternative fuels shareholder
companies with Holcim in Romania and TITAN Cement SA in Southeast Europe
and Eastern Mediterranean regions.
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