for Recycling and Processing of Solid Waste Collaborated with award-winning architectural and technology systems design professionals J.R. Miller & Associates, Bulk Handling Systems and Zero Waste Energy Enlisted The Conlan Company to implement construction of $35 Million, 82,000+ sq. ft. state-of-the-art manufacturing facility Began processing MSW at the rate of 30-35 tph and created 125 new jobs with salaries, ranging from $9/hr to $180,000 per year Post-opening, have garnered interest from multiple city, state and federal governments
Complete dry fermentation AD System – 21 day digestion cycle Biogas economically converted to electricity, heat and/or transportation fuels (CNG) Option for in-vessel composting for ammonia scrub or compost maturation SMARTFERM uses pre-fabricated modular construction including digesters (4,000 – 25,000 TPY with 4 to 18 digesters)
70,000 homes 100k tons/year Garbage 2x/week Trash (Yard) 1x/week 86 RELs (53 on any given day) Average fleet age 8.4 years 3 workers/unit Diesel 6.8 tons/unit/day Current Annual Costs $8.6 Direct Labor $0.2 Workers Comp $2.6 Maintenance $1.2 Fuel $12.6 Total Operating Costs $0.9 Capital Costs $13.5 Grand Total KESSLER/HEIL/ESG
MSW in the United States, 2012 (per USEPA) Participation Rate vs. Efficiency National Recovery Rate with Citizen Participation: 10-34.5%* Landfill Diversion Rates • Raw Material Fraction: 35-40% (Traditional Recyclable Material) • Organic Fraction: 20-30% (Utilized in AD and Compost) • Engineered Fuels 15-20% (Fiber and Polymer Residue) _________ Total Landfill Diversion: 70-90%
a negative affect on volume of exports on plastic products due to strict bale quality enforcement. • PET demand domestically remains strong • HDPE – Natural prices have escalated to highest level seen in 5 years with a modest increase for colored HDPE • 1 Billion+ pounds of post-consumer plastic film were recycled in 2012 – up 56% from 2005 AMMRF System Advantages • Bale quality from our AMMRF technology allows us to compete in high quality markets • New technology for Montgomery sends PET with liquids in the bottle to the PET bin
strong and is expected to grow by 35% between 2008 and 2018.* • In 2012, the U.S. paper recovery rate reached 62%* • Mixed paper from MRF’s now a fully accepted commodity *U.S. EPA AMMRF System Advantages • Bale quality from our MRF technology allows us to compete in high quality markets • Fiber (mixed paper/OCC) quality very important during lower demand months such as summer
the Commerce Dept. show U.S. ferrous scrap exports declined 14% by volume and more than 20% by value in 2013 due to weaker demand • In 2012, the U.S. metals recovery rate reached 27.7%* • The current Southeast market price for aluminum is $1,550 per ton *U.S. EPA AMMRF System Advantages • Metals recovery very important during lower demand months such as summer • Aluminum recovery rates are currently 90+%
to process either mixed waste and single-stream, collectively, or provide a separate infeed for source separated recyclables, depending on the requirements of each municipality Plastic sorting can change within 24 hours to reflect market conditions (i.e., #4’s and #5’s) through optical technology
and Operational Impacts • 90% reduction in material to landfill (at system optimization) • 95% of organic fraction from MSW diverted to AD system to produce CNG • Safety enhancements for collections with conversion to automated loaders • City will operate one of the Country’s first carbon negative collection fleets • Financial Impacts • Up to $1.6 M annual savings in landfill operations • $2.2 M net annual reduction in collection fleet operating costs • No capital investment required by the City • No capital investment from the City- 100% Private Investment • No risk to the City- no funds expended until project systems are delivered • Municipal obligation for tipping fee payment upon delivery of the facility • Purchase of CNG as delivered • Recovery rates and system performance guarantees in Contract
System Capacity) Aluminum cans: 2,988 tons per year • About 200 million cans per year • The energy equivalent of nearly 5 million gallons of oil • Enough energy saved to power nearly 3,000 homes per year • Recycling aluminum saves 95% of the energy needed to produce aluminum from raw materials. All plastics: 31,212 tons per year • The yearly energy saving from recycling all plastics, instead of manufacturing, will equal about 180 million kwh, enough to power 12,800 homes for a year. • Recycling plastic saves 88% of the energy needed to produce plastic from raw materials. PET plastic only (clear bottles): 6,210 tons per year • It takes about 20 empty 20-oz soda bottles to weigh a pound, so this is the equivalent of approximately 240 million 20-oz bottles per year.
the equivalent of 850,000 trees per year— about 2,300 trees per day • Trees saved per year will offset the carbon dioxide produced by 16,800 cars. • Enough energy saved to power 14,148 homes per year Cardboard: 21,000 tons per year • Enough energy saved to power 600 homes per year • Saves the equivalent of 962,000 gallons of oil Food waste: 17,640 tons per year • 35.28 million pounds or the equivalent of 74 million Big Macs or apples. • If all these Big Macs were stacked, they would reach 28,000 miles, 3,000 more miles than the circumference of the earth or about 7 round trips from Montgomery to Los Angeles. IREP MODEL FUN FACTS
Bonds and Taxable Bonds • AA Rated Bonds (one notch below City G.O. rating) • 25 year Bond maturity from end of construction matches term of contract with City to deliver waste • Rating based on strength of City contract, strength of project team, mitigation of construction risk and direct deposit agreement from City to Bond Trustee • Structure is based on contractual obligation of the City, not a direct debt of the City
(scavenging) • Mixed waste processing requires aggressive training and labor transitions • No labor pool for mixed waste processing even at the managerial level • Changing the mindset of personnel trained in similar environments with other waste companies to understand we are a manufacturing company and process • City and Private Organization must become a partnership and not adversarial Industry Challenges • Opposition from both the paper and metals industry • Misinformation in the marketplace • Backlash from the recycling industry and political organizations to maintain source separation (“We are teaching our kids to NOT recycle”) CHALLENGES CHALLENGES
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