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1 WASTE-TO-ENERGY WITH A NEXT GENERATION SMALL SCALE PLASMA GASIFIER PRESENTED BY DR. ABRAHAM E. HASPEL TO NY ENERGY & ENVIRONMENTAL FUNDERS MARCH 8, 2013.

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Presentation on theme: "1 WASTE-TO-ENERGY WITH A NEXT GENERATION SMALL SCALE PLASMA GASIFIER PRESENTED BY DR. ABRAHAM E. HASPEL TO NY ENERGY & ENVIRONMENTAL FUNDERS MARCH 8, 2013."— Presentation transcript:

1 1 WASTE-TO-ENERGY WITH A NEXT GENERATION SMALL SCALE PLASMA GASIFIER PRESENTED BY DR. ABRAHAM E. HASPEL TO NY ENERGY & ENVIRONMENTAL FUNDERS MARCH 8, 2013 Company Confidential |

2 2 Company Confidential – Presentation Outline Value Proposition Cogent’s Waste-to-Energy System Marketing & Business Model Team & Partners Development & Deployment Plan Cogent’s Next Steps

3 Company Confidential – Value Proposition

4 4 Company Confidential – Why Invest in Cogent? Small Footprint & Low Capital Cost Efficient Conversion Feedstock Flexibility The Future: Compact Affordable Efficient Flexible Digesters, Pyrolysis Incineration, Large-scale Plasma Small-scale Plasma

5 5 Company Confidential – Cogent’s Advantage Cogent can go where its competitors can’t To more attractive markets, such as islands, which have:  High electricity prices (e.g., $0.42/kWh in USVI)  High municipal solid waste (MSW) disposal costs (e.g., $70/ton in the Bahamas)  Insufficient MSW for traditional waste-to-energy (WTE) systems (e.g., tons per day in Antigua & Barbuda, Dominica, Grenada; a few hundred tons per day in Bahamas, Guam, St. Lucia, USVI) These markets are inaccessible to competitors because their systems are too big, too inefficient, or too specialized in their feedstock requirements As a result, Cogent will deliver: A solution for waste elimination and cost-effective electricity generation at an appropriate scale with almost no environmental impact High rates of return to its investors

6 Company Confidential – Cogent’s Waste-to-Energy System

7 7 Company Confidential – The Cogent WTE Process Schematic COTS = Commercial Off The Shelf

8 8 Company Confidential – What is Plasma? Plasma is the “4 th state of matter”  Ionized gas with temperatures of 10,000+ degrees K  Lightning is an example of naturally-occurring plasma

9 9 Company Confidential – Conventional Plasma WTE Processing Indirect processing method  Use plasma to heat the environment inside a processing chamber  Essentially “cooks” the waste, producing partially-processed syngas (requiring additional processing) and consuming significant electricity AlterNRG (Westinghouse) Pyrogenesis

10 10 Company Confidential – Next Generation Cogent WTE System Waste Feed Direct processing method  Cogent’s breakthrough: plasma modules stacked vertically with cross-module connections create a long, continuous plasma column with a uniform high- temperature processing zone  Plasma field fills the processing chamber, rather than just heating the environment  Waste is introduced directly into the plasma field and is vaporized into a clean syngas in a single step as it passes through the processor  Uses less electricity for processing, leaving more net electricity for sale All other major components are proven, COTS systems

11 11 Company Confidential – Next Generation Plasma Processor Peter Kong, Ph.D., Idaho National Laboratory (INL)  INL Inventor of the Year  50+ Scientific Papers; 30+ Patents  20+ Years of Plasma Experience  Developed numerous prior generations of plasma processing technology including large-scale waste processing systems Dr. Kong’s most recent invention is the core of Cogent’s system  “Modular Hybrid Plasma Processor” (MHPP)  Operational since now operating Generation 5  Over $5M DOE funding invested to date  Developed for low cost bulk production of nanomaterials Video of Dr. Kong & operational MHPP available at

12 12 Company Confidential – System Energy Balance

13 13 Company Confidential WTE Competitive Landscape High Power Output Low Power Output Large Footprint & High Cost Small Footprint & Low Cost Incineration Pyrolysis Digesters

14 Company Confidential – Marketing & Business Model

15 15 Company Confidential – Target Markets High value opportunities are particularly present on islands  High cost of electricity  High cost of waste disposal / landfill fees LocationPrice of Electricity ($/kWh) Waste Disposal Fee ($/ton) Bahamas$0.33$70 Bermuda$0.39- Cayman$0.37$89 Curacao$0.42- Jamaica$0.35$52 Hawaii$0.39$85 USVI$0.42- Caribbean electricity data primarily from CARILEC 2010 tariff survey. Caribbean waste disposal data from PAHO 2005 solid waste management report. Hawaii information from websites of local service providers.

16 16 Company Confidential – Target Markets “Closed loop” scenarios  Customer produces waste & consumes energy  Distributed generation – same model as rooftop solar panels Hotels & ResortsPorts / Harbors Government & Military Installations College Campuses Agricultural & Livestock Operations Factories Industrial & Residential Complexes ShipboardRecreation Facilities

17 17 Company Confidential – Initial Market Interest Letter of Intent (LOI) from Caribbean Community Climate Change Centre committing to assist Cogent in:  Placing an initial commercial system  Minimum 10 additional systems  Vacation Resorts  Ports & Harbors  Agricultural Operations US Insular Affairs: Guam, USVI Gov’t: Curaçao, Trinidad & Tobago, Belize Commercial / Industrial / Agricultural: Jamaica, Hawaii, Honduras, Bahamas, Barbados Limited landfill space makes waste disposal an urgent problem for island nations, states, and territories.

18 18 Company Confidential – Business Model Two Components  Cogent Energy Systems will build & sell fully packaged WTE systems - $7.5M projected capital cost + 20% annual royalty  1st full-scale system: projected $7-8M cost to build  Nth full-scale system: projected $4-5M cost to build  Individual operating companies will own & operate each WTE system with multiple revenue streams  Long-term Purchase Power Agreement (PPA) with user  Long-term waste disposal (tipping fee) agreement with user  Potentially available additional revenue streams Carbon credits (~0.5 ton CO2e per ton of MSW) Sale of metals, chemicals, and vitrified slag components - depends on waste stream composition Tax credits, rebates, and local incentives

19 19 Company Confidential – Why Customers Will Buy From Cogent Operating a Cogent WTE system will be profitable from day one, with pre-tax IRR of 20% or more, and 20-year total net cash flow of nearly $30M Critical Input Assumptions  Operating companies pay Cogent $7.5M purchase price and 20% royalty  Systems cost $550,000/year to operate, with uptime 340 days/year  Operating companies sell electricity at an average $0.30/kWh, while the projected 20-year unlevered levelized cost of electricity from a Cogent system is approximately $0.16/kWh  Operating companies receive waste disposal “tipping” fee of an average $30/ton  Capital cost is financed over 10 years at 4% interest (IADB, Ex/Im) In $ Thousands Year 1Year 2Year 3Year 4Year 5Year 6 Net Cash Flow$391$464$538$614$691$770

20 20 Company Confidential – Why Investors Will Profit From Financing Cogent Cogent will sell 35+ systems over six years, earning nearly $300M top-line revenue Cogent anticipates exit via acquisition in year five or six, to potential buyers including energy companies and utilities, equipment manufacturers, military contractors, landfill and waste management companies, or other WTE companies In $ Thousands Year 1Year 2Year 3Year 4Year 5Year 6 New Systems Sold Net Cash Flow($4,300)($2,100)$1,600$10,400$22,700$64,400

21 Company Confidential – The Cogent Team

22 22 Company Confidential – Cogent Energy Systems Management Team President: Abraham E. Haspel, Ph.D.  President of Cogent Analysis Group. Former Deputy Assistant Secretary of Department of Energy, COO of Office of Energy Efficiency & Renewable Energy. Former Assistant Deputy Secretary of the Interior VP, International Market Development: Douglas Russell  Former executive at Natsource (a carbon asset management firm). Former Director, Air Issues Branch, and Director General, Air Pollution Prevention Directorate, Environment Canada VP, Operations: Paul Vickers  Process Engineer with extensive refinery, chemical plant and power plant design, start up and operating experience at Shell Canada and TransAlta. Director of Sustainable Development at TransAlta VP, Marketing & Strategic Planning: Joel Haspel  VP, Renewable Energy at Cogent Analysis Group. Former VP of Marketing & Strategy with venture-backed software startup Plethora Technology CFO: Bert T. Edwards, CPA, CGFM  Former Assistant Secretary and CFO, U.S. State Department. Led entire public sector practice as Partner at Arthur Andersen

23 23 Company Confidential – Cogent Energy Systems Partners Idaho National Laboratory – R&D  One of the nation’s leading research facilities in clean energy, nanotechnology, and nuclear R&D  Cogent agreements with INL:  Work For Others (WFO)  Exclusive Worldwide License Option Agreement (LOA)  Cooperative Research & Development Agreement (CRADA) Awaiting Execution Upon Financing Creare, Inc. – Engineering & Design  Jay Rozzi, Ph.D. – Team Lead  Spinoffs Hypertherm (Plasma Torches), Edare (Manufacturing)  Past projects include a portable plasma decontamination unit for the U.S. Air Force, as well as systems for the Mars Rover, Hubble Space Telescope, and C-17 aircraft Gershman, Brickner & Bratton, Inc. (GBB) – Waste Handling  Specializes in landfill and recycling facility design and management, solid waste management planning, and solid waste handling infrastructure  Manages Guam’s solid waste infrastructure

24 Company Confidential – Phased Development & Deployment Plan

25 25 Company Confidential – Three Phase Process Single full-scale plasma module for demonstration and testing (1 of 3 for entire MHPP system) LOI from customer for initial unit purchase Phase 1: $750K Full-scale 3-module MHPP system completed Detailed design for fully integrated WTE system Signed contract with first customer Phase 2: $3.2M Final balance of plant and total system cost depend on customer details – type and volume of feedstock, Deliver fully integrated WTE system Phase 3: $2.25M- $5.25M 4-6 Months

26 Company Confidential – Cogent’s Next Steps Raise Investment Capital Scale & Test Core Plasma Processor (CRADA with INL) Secure First Client & Determine Operating Parameters Procure COTS Components Optimized for First Client Integrate & Test End-to-End WTE System (Partnership with Creare) Deploy Initial System to First Client Initiate Repeatable Sales & Delivery Processes

27 27 Company Confidential – Thank You For More Information, Please Contact Dr. Abraham E. Haspel, President


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