Klean Selects EPC For Boardman & Midlands Tyre Pyrolysis Projects
Vancouver, Canada - Klean Industries Inc (“Klean”), is pleased to announce on the back of the acquisition of Carbon Resources Recovery GMBH (“CRR”), Berlin, that it has now selected it’s exclusive and EPC partner for the delivery of its tire pyrolysis and recovered carbon projects on a global basis. Klean who owns the IP behind the world’s most commercialized advanced thermal conversion technologies for the tertiary recycling of scrap tyres and has begun the detailed engineering and design for two new projects owned by the company. The first project is located in Boardman Oregon, USA (former ReKlaim site), and the second is located in Midlands, UK.
These flagship facilities will be the world’s leading recovered carbon black (rCB) facilities and will consist of a fully integrated tire recycling and resource recovery process that have a base nameplate production capacity of 120 metric tons per day. It is estimated that these combined projects will have capital costs in the range of $150m to complete including all infrastructure and balance of plant (BOP). These facilities will each recycle and recover scrap tires into high-quality ASTM-rated products such as recovered fuel oil (rFO), a near nano-grade recovered carbon black (rCB), and recovered steel wire (rSW).
The facility in the United Kingdom has been under consideration and development by the KleanTeam for a number of years now, however with Brexit on the horizon, in June of 2016 Klean and its partners decided to pull all further investments out of the UK as the economic outlook and risks for leaving the European Union caused concerns that tariffs may have been implemented by the EU for products produced in the UK that are then exported for sale into the EU. At the time of Brexit, Klean was relying on the European marketplace for approximately 50% of UK projects output for sales of the products produced from its business activities in the UK. As of 2019, Klean has developed what we believe to be the single largest network for production and distribution of recovered carbon black globally, as current production exceeds 100,000 tonnes annually and current demand exceeds current capacities. Now that Klean has built its own network for recovered carbon black sales that is equally distributed around the globe, It no longer relies on the EU and is not concerned with what happens to the UK in terms of potential EU product tariffs, as the domestic market offers a massive opportunity for the oil produced by Klean under the revised and implemented Renewable Transport Fuel Obligations (RTFO).
The Midland’s facility will produce an ASTM certified oil that will comply with the United Kingdom’s Renewable Transport Fuel Obligations (RTFO) which is a requirement set by the UK Government that puts a requirement for transportation fuel suppliers to ensure that a minimum percentage of all road vehicle fuel is supplied from sustainable renewable sources. This offers significant economic incentives for the entire production of Klean’s oil product domestically which will be used as a blending stock for the production of more sustainable transportation fuels. The KleanTeam is already in contract negotiations with the largest refineries in the UK on a “take or pay” basis. The Midlands project will also feature the added benefit of the production of green electricity which will be exported and sold into the national grid meeting the UK desire and need for green power.
“I think every company has a desire to produce a product that is in such high demand that you cannot keep it on the shelf, it’s a good problem to have, providing you manage the expectations of new customer’s needs. This wasn’t our intention, in the beginning, it was actually a function of our wise development strategy. The KleanTeam has spent decades perfecting the technologies to produce the in-demand products and the needed product formulations that exceed customers’ requirements. The KleanTeam was clever enough to see the opportunity, a niche that needed to be filled and we quietly went about filling this niche while driving our revenues, building our supply chains, and perfecting technologies needed to increase efficiencies and lowering production costs while at the same time lowering capital cost requirements on equipment. Now we can offer what others, simply cannot from a fully integrated perspective. We have the technologies, the team, the network, the demand, the capabilities, the manufacturing plants, the EPC partnerships, the feedstock volumes, and the financing behind us with zero debt. It’s an investor’s dream to support a company like ours, because this is the result of doing the hard work, even in incredibly challenging economic times and unfavorable market conditions that are outside of anyone’s control. Now with investors lining up to partner with us, and the ability for a company to finance our customer’s projects, Klean is truly changing the game. This is even further reinforced by our ability to forward sell all our plant’s production capacities because of our extensive sales networks. I can’t tell you how proud and grateful I am for the efforts of KleanTeam. It is the KleanTeam’s dedication to positioning the company where it is today. Knowing where we came from, and developing a clear path to where we are going has been key, it’s been an absolute honor to work with such amazing people who put their heart and soul into everything they do.” said Jesse Klinkhamer, Klean Industries CEO.
It is commonly known and understood that scrap tires and waste rubber products are significant and problematic waste streams globally. In fact, the KleanTeam has always seen this waste as a raw material commodity that currently lacks the critical infrastructure needed for the recovery and reuse of these valuable resources. In many parts of the world, new regulations have been implemented for tire recycling and reuse of these rubber waste streams, yet despite these new regulations most of this valuable waste is either landfilled as an excuse for engineering purposes and/or is incinerated as a tire-derived fuel (TDF) product for energy recovery. Klean’s understanding of this global issue is the insufficient capacity to deal with this waste globally and specifically in both Europe and the United States. This problem offers a significant opportunity to the company, in that Klean sees this resource as a multi-billion dollar urban mining opportunity that has both significant environmental and financial benefits as the US and UK have been forced to deal with the +400M tires generated annually.
Klean is also planning for the integration of its advanced processing technologies which include the newly developed and patent pending KleanLoop(TM). The company’s blockchain solution for providing economic transparency and environmental accountability to the waste management sector which specializes in the incentivization of tire and plastic recycling. The application of this DApp powered by our artificial intelligence system called “Arnold” is set to radically change how waste recycling is incentivized, tracked, and monetized globally. Klean is currently working with the world’s leading carbon black and tire manufacturers to integrate the KleanLoop(TM) into their production processes which streamlines their supply chains and resource efficiency.
Additionally, the KleanLoop(TM) enables the flawless integration of commodities recovered from Klean’s advanced thermal processing facilities which increases the adoption cycle of new product production that contains highly beneficial recycled content. This lowers operating costs, and manufacturing costs and most importantly lowers the environmental burden (footprint) of products managed under this blockchain technology solution.
The KleanLoop(TM) innovation is designed to be rolled out on a global basis into all of Klean’s new business opportunities and sales infrastructure. The company believes it to be the premiere system and method for the advancement of the circular economy we all want and need. The patent pending KleanLoop(TM) technology has proven itself as a winning combination in the waste management and resource recovery space and was a featured case study done by the Klean Team at the Massachusetts Institute of Technology and Sloan School of Management.
James Klinkhamer, Chairman of Klean Industries said “We are extremely pleased with Klean’s project development cycle, the advancement of the KleanLoop(TM) and in completing our recent acquisitions with more in the pipeline that puts Klean into a leadership position with highly advanced projects in the hopper. This will secure that we are going to continue to be in this position for the foreseeable future”.
About Klean Industries
Klean Industries (“Klean”) provides best-in-class technologies and solutions in the waste-to-value industry. Our international team of award-winning experts have decades of experience in the design, engineering, and manufacturing of the highest quality equipment to convert waste streams into valuable energy and resources. Our unique products and services are a result of combined know-how in the design of recycling, resource recovery, waste management, and power generation projects. Our global project management expertise safeguards timelines and budgets enabling projects to be delivered in less time and at lower costs.
Klean uses proprietary technologies to rapidly develop projects that produce the highest quality fuels, recovered Carbon Blacks (“rCB”), and green hydrogen from various kinds of feedstocks. Our knowledge and skillfulness provide a specialization in building projects that use advanced thermal technologies such as pyrolysis, gasification, and carbonization, which convert end-of-life tires, waste plastics, and municipal solid waste into domestic energy, sustainable commodities, and new cleantech jobs. We create a symbiosis between waste, resources, and energy. Klean Industries is the link between the low carbon, circular economy, and the goal of zero waste to landfill.
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