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CONVERSION OF WASTE TIRES TO ENERGY AND MARKETABLE PRODUCTS
The Joint Venture between E Fuels , LLC and Preservation Energy , LLC (JV) is willing to
demonstrate their waste tire pyrolysis technology at the Indian River County Landfill and ,
in the event of an act of God , should the pyrolysis demonstration equipment be
damaged , the JV will hold harmless Indian River County and SWDD . Indian River
County and SWDD will make every effort to keep trucks and machinery far enough away
from the demonstration project area to prevent damage to the pyrolysis equipment .
The JV further agrees to :
1 . Provide a one ton per hour Pyrolysis unit to be located on the SWDD landfill site
per the attached Proposal for Waste Tire Demonstration Project .
2 . The demonstration project will eliminate the cost for disposal associated with the
current SWDD inventory of waste tires .
3 . Sampling and testing will be performed by the JV to demonstrate process
technology , environmental acceptability and product marketability .
4 . The Project will require additional tires from sources other than SWDD . The JV
will be responsible for acquiring these tires at no cost to SWDD .
5 . The duration of the demonstration will be six to nine months ( see Proposal ) .
6 . At any time during the demonstration period and upon reasonable notice for
proper demobilization , SWDD or Indian River County may request the JV to
remove the pyrolysis equipment without any further obligation to the JV .
E'FUBLo% eBESERVATION ENERGY , LLC In JOINT VENTURE
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E , Fuet� - L 83'3 Sable Oak !Lane Presarvatl �gn energy . 3003 NE Ivy Lane
'' I h 'Plogida 32963 Jensen Beach , FL 34957
IVER COUNTY SOLID WASTE DISPOSAL DISTRICT
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By :
Peter D . O ' Bryan , Chairman
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Attest : J . K . arton ,�Clerk of Court
By :
Deputy Clerk
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Approve ?oseph
A . Bairdpp ounty Administrator
A roveform and legal sufficiency :
County Attorney
PROPOSAL FOR A WASTE TIRE PYROLYSIS
DEMONSTRATION PROJECT
The following is a joint proposal from E Fuels , LLC ( E Fuels) and Preservation
Energy , LLC ( PE ) in Joint Venture (JV) to design , erect and operate a pyrolysis
unit for demonstration purposes at the IRC Solid Waste Disposal District landfill
site . The purpose of this project ( Project) is to demonstrate the ability to convert
waste tires to pyrolysis gas , which is recovered for process heat , and other
products ( pyrolysis oil , char and steel ) that are marketable , and to demonstrate
the ability to operate in a safe and environmentally acceptable manner .
TECHNOLOGY
Pyrolysis is the thermal decomposition of organic materials in the absence of
oxygen into smaller, less complex molecules . The principal products of pyrolysis
are pyrolytic gas , oil and char. Pyrolysis historically has been used on a variety
of organic substances , including crop and wood wastes , plastics , coal and heavy
crude oil . Pyrolysis is also known as destructive distillation , thermal cracking ,
coking and carbonization .
The demonstration pyrolysis unit is commercial scale and designed to process 1
ton of tires per hour . It will convert waste tires to " pyro gas" by exposing
prepared feedstock to moderately high temperatures ( 500 degrees Celsius )
under the near absence of oxygen . This gas is condensed to produce " pyro oil "
which is directly usable for industrial heating and power generation . It can be
refined for use as diesel fuel . The non -condensable gas , similar to natural gas , is
returned to the pyrolysis unit to supply process heat . Excess gas can be used for
electricity generation or will be flared .
Pyrolysis is not incineration . With pyrolysis , the low oxygen environment is key
to producing low combustion emissions . This is the primary differentiator
between pyrolysis and incineration . With incineration , air is supplied in a greater-
than -stoichiometric ratio to combust and destroy the waste materials as
completely as possible . Incineration produces emissions of conventional and
other pollutants that require robust air pollution control systems . Energy can be
recovered from incineration whereby combustion heat is converted to steam or
electricity generation .
Pyrolysis is essentially a " cooking " process , vs . the " burning " process of
incineration , meaning that the organic material is " cooked " down to condensable
liquid and gaseous components , and a carbonaceous char. Pyrolysis differs
from incineration , in that virtually all of the waste materials are converted into
products that are recoverable for energy content and are marketable , while
producing low emissions .
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DEMONSTRATION PROJECT TIMELINE
The demonstration project will take approximately six to nine months from IRC
approval to implementation and eventual decommissioning . The demonstration
project will advance generally according to the following timeline :
Time Zero — IRC Board of County Commissioners approves the tire pyrolysis
demonstration project .
Month 1 — Financing is completed by the JV .
Month 2 — Tire pyrolysis unit fabrication is underway . This demonstration unit will
be built to the full scale throughput of 1 ton / hour , equivalent to approximately 100
car tires per hour .
Month 3 — The demonstration pyrolysis unit fabrication is completed and the unit
will be transported to the designated SWDD site . Environmental permitting for
the demonstration process will be completed by the JV .
Month 4 — The pyrolysis unit and ancillary equipment will be set up , and startup
activities will begin .
Month 5 — Demonstration runs of the tire pyrolysis unit will be made .
Month 6 — Demonstration runs of the tire pyrolysis unit will be completed .
Month 7 — Commercial agreements will be negotiated to address future
operations and scale- up of the tire pyrolysis process . If no agreement is in place
for the continued use of the SWDD site , the demonstration tire pyrolysis unit and
the ancillary equipment and related materials will be removed . The site will be
restored to an acceptable condition .
Months 8 & 9 are contingency (float) months to accommodate extensions to the
timeline that may be encountered as necessary .
PROJECT DESCRIPTION AND OPERATION PLAN
Equipment
The demonstration pyrolysis unit and ancillary equipment will be transported to
the designated SWDD site on two flatbed trailers . The pyrolysis unit will remain
trailer- mounted for the duration of the demonstration period . An area of
approximately 2 acres (to be determined in concert with SWDD) is expected to
be needed for the pyrolysis demonstration unit, ancillary equipment and waste
tire feedstock temporary storage .
The pyrolysis unit integrates a heat exchanger for cooling the pyrolysis gas into
the liquid oil and a non -condensable gas , which is used for process heat. The
pyrolysis unit has an integral flare for safely oxidizing unused pyrolysis gas .
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Ancillary equipment to support the operation of the tire pyrolysis unit includes the
following significant items :
- A punch press will be used to achieve the required material size for feed to
the pyrolysis unit .
- A conveyor will be used to move cut tire feedstock to the pyrolysis unit ;
- A front-end loader ( rubber tire equipped ) will be used for management of tire
feedstock and for movement of solid pyrolysis products including char and
scrap steel .
- Oil tankers will be used to collect oil from pumped from the pyrolysis unit
accumulator tank and transport product oil off-site .
- An output conveyor will move char and steel from the discharge of the
pyrolysis unit to storage containers .
- A generator fueled by LP gas will be used to provide electric power to the
process equipment .
- LP gas cylinders will be used during unit startup and for flaring excess
pyrolysis gas .
Feedstock
The demonstration unit will process up to 60 , 000 tires during the demonstration
period . Tires for the demonstration unit will be made available by SWDD
( approximately 10 , 000 tires ) and from sources arranged by the JV for the
balance of tires needed .
Waste tires provided by SWDD will be worked directly from the existing storage
pile . Waste tires provided by the JV will be brought into the SWDD Facility by
truck , across the SWDD scale for weighing , and directly to the SWDD site
designated for the demonstration process . These tires will be off- loaded into a
new storage pile adjacent to the SWDD tire storage pile .
Tires will be transported by front-end loader to the punch press , and punch -cut to
a size appropriate for feedstock to the pyrolysis unit . Tire chips will be moved by
a conveyor from the punch press to the feed hopper on the tire pyrolysis unit .
Staffing and Flours of Operation
The tire pyrolysis demonstration operations will be supported by staff provided by
the JV . SWDD will not need to provide any staff to this project . JV staffing will
include a management function , direct site supervision , an operator and a helper
during production , and mechanics and other craft personnel as needed during
equipment setup/takedown and to maintain pyrolysis operations .
Hours of operation for the demonstration ( including equipment setup and
takedown , and production operations) will coincide with SWDD hours of
operation for the landfill . If the JV wants to operate the demonstration project
PROPRIETARY AND CONFIDENTIAL
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outside normal landfill hours , then accommodation will be sought from SWDD .
The JV recognizes that such accommodation may not be granted .
Pyrolysis Products
The pyrolysis unit will produce three products from the tire feedstock : pyrolysis
oil , char and scrap steel . The JV will perform sampling and testing to
demonstrate marketability of the pyrolysis products .
Pyrolysis oil is condensed from pyrolysis gas in the air-cooled -water, closed - loop
heat exchanger and gravity fed into an integral accumulation tank . From that
tank , the oil is pumped into a tanker for storage and transport . The
demonstration project will produce up to 70 , 000 gallons of pyrolysis oil .
Char is recovered from the back end of the pyrolysis unit by a conveyor and
placed into sealable tote .bags that will be used to store and transport the char .
Connex boxes will be used for weather- protected temporary storage of the
packaged char . The demonstration project will produce up to 150 tons of char .
There is uncertainty at this time and at this scale of operation that a market can
be found for this small amount of char . Therefore , SWDD may be requested to
provide disposal for any unsold char from the pyrolysis project pending
demonstration testing by the JV that the char is acceptable to SWDD for landfill
disposal . Applicable disposal fees will be paid by the JV .
Scrap steel is magnetically separated from the char and will be conveyed into
appropriate containers for storage and transport. The demonstration project will
produce up to 120 tons of scrap steel .
All products to be transported off-site will be weighed at the SWDD scale .
ENVIRONMENTAL HEALTH AND SAFETY
The JV will be responsible for acquiring air emissions and other permits
associated with the demonstration project . It is not anticipated that any permit
held by SWDD for the landfill operation will need to be modified to accommodate
the tire pyrolysis demonstration . During the demonstration , emissions and
performance data will be collected by the JV for the purpose of meeting
environmental requirements and designing the commercial scale operations .
A site - specific Health and Safety Plan ( HASP ) will be prepared for the
demonstration project . This plan will address hazard analysis and mitigation for
worker activities and possible exposures , accident/incident procedures and
reporting , and additional health and safety requirements included in 29 CFR
1910 . 120 and 1926 .
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A simplified spill prevention control and countermeasure plan will be prepared to
address oil handling , storage and transport on SWDD property . It is not
anticipated that a formal SPCC plan will be needed because the criteria ( storage
types and volumes ) for triggering an SPCC plan will not be reached .
INSURANCE
All commercially available and necessary insurance requirements will be
provided by the JV as required , including :
1 . General Liability , Pollution Liability ( continuous pollution coverage as well
as sudden and accidental coverage for up to three years past the
demonstration period , ( the extent of coverage being contingent on
analysis of the products produced by the pyrolysis process and
commercial availability ) and Auto Liability ( including CERTS for any
trucks/tankers picking up or delivering materials , and for any third party
vehicles entering on SWDD property ) at base limits of $ 1 , 000 , 000 per
occurrence .
2 . Statutory Workers Compensation for JV employees .
3 . An underlying umbrella/excess policy in the amount of $ 2 , 000 , 000 .
4 . A bond or letter of credit estimated to be in the amount of $ 100 , 000 for the
disposal of waste tires delivered to the SWDD facility , but not otherwise
disposed of by the JV .
5 . Upon receipt of final insurance coverages and limits from our commercial
carrier , the JV will submit the proof of insurance , bond and/or LOC
documentation to the Indian River County Attorney and staff for review
and approval .
6 . IRCBCC will also be named as an Additional named insured on the GL
and Pollution policies as requested .
SWDD TO PROVIDE
1 . SWDD to provide a graded , drained site of up to approximately 2 acres to
accommodate the demonstration project .
2 . SWDD to provide access for truck traffic to the Project site .
3 . SWDD will not provide utilities (electric , water and natural gas ) to the
Project .
4 . SWDD to provide waste tires ( amount per day to be determined ) at no
cost to the JV .
5 . SWDD to provide disposal for any unsold char/ash from the pyrolysis
project pending demonstration by testing that the char/ash is acceptable to
SWDD for landfill disposal .
PROPRIETARY ANIS CONFIDENTIAL
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6 . To provide additional feedstock for the Demonstration Project, we request
that IRC consider declaring , for example , an amnesty day ( s ) during which
any number of waste tires accumulated within Indian River County can be
brought to the landfill at no cost to the disposer . This provision is ,
however , only a request and is not critical to the demonstration .
7 . Upon successful completion of the demonstration project or before , the JV
would seek to enter into a long -term agreement with SWDD for the
ongoing conversion of waste tires to pyro gas and other marketable
products . This agreement also could include leasing and /or selling SWDD
land to the JV for commercializing the tire pyrolysis process and other
potential financial benefits to the County .
PLAN VIEW AERIAL
The demonstration equipment layout will require approximately 2 acres during
operation , excluding the JV or SWDD tire storage and handling areas . It would
be located in the area circled below , pending SWDD concurrence , to allow easy
access to the SWDD ' s current tire pile .
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SUMMARY OF JOINT VENTURE
E FUELS, LLC & PRESERVATION ENERGY, LLC
In the past three years , the E Fuels/ Preservation Energy team has focused on
renewable energy projects throughout Florida and primarily in Indian River
County . E Fuels , LLC and Preservation Energy , LLC were initially invited by
NPE to co - bid and provide the feedstock handling / RDF preparation and power
generation components respectively to the proposed NPE Florida , LLC ( later
INEOS Bio ) ethanol project proposed to Indian River County Solid Waste
Disposal District in July 2008 . E Fuels and Preservation Energy ( PE ) have
formed a joint Venture ( JV) to further develop commercially viable opportunities
and waste conversion technologies through our JV . This proposal constitutes
our first formal offering to the SWDD and Indian River County for that purpose .
The Hulton Family business was started in 1914 in Philadelphia . The Hultons
developed and ran an electric generating facility fueled by coal and oil . In 1980 ,
Bruce and Walter Hulton converted coal -fired boilers into biomass gasification
units . These units were used in the electric generating industry to produce steam
for sale and the generation of electricity . As pioneers in gasification technology ,
the Hultons had the only licensed biomass cogeneration facility inside the
Philadelphia city limits at the time .
There are five managing members who make up the Preservation Energy , LLC
( " PE " ) team . Members of PE team have worked together to develop energy
projects since 2000 under various limited liability corporations to qualify and
develop over 3 , 000 megawatts of power in southern Florida . The PE team
members have partnered with other development companies such as Calpine
Eastern Corporation and Mirant Corporation , the nonregulated development
company of Southern Company .
Each of the PE team members brings over 20 years of experience in the energy
business , including permitting and licensing , engineering , power marketing ,
equipment procurement , asset management , financial management positions
and regulatory compliance . Four of the five members are Florida residents and
take a special interest in developing projects that give back to Florida . The PE
team spent most of the 80s and 90s doing business in the Florida market , with all
of the largest Florida electric utilities ( Florida Power & Light Company , Florida
Progress , TECO Energy , City of Tallahassee , City of Vero Beach , to name a
few) . Members of the PE team worked for Foster Wheeler (formally Ebasco) and
managed the licensing and permitting of over 24 , 000 megawatts in Florida . PE
continues to stay current with the Florida market.
The team members have also formed Preservation WindPower, LLC ( PWP ) to
expand their renewable energy development efforts in wind power , geothermal ,
solar power and other site -specific opportunities to convert crude oils and paraffin
wax based products into biofuels and power. PWP is actively pursuing wind
PROPRIETARY AND CONFIDENTIAL
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generation opportunities with Native American tribal councils in Montana and
Utah , as well as geothermal projects in Colorado and Nevada .
BUSINESS REGISTRATION
E Fuels , LLC is a Florida Limited Liability Company registered with the state of
Florida , Document Number L07000033946 initially filed on March 30 , 2007 .
Preservation Energy , LLC is a Florida Limited Liability Company registered with
the state of Florida , Document Number L08000072535 initially filed on July 28 ,
2008
PLACES OF BUSINESS
The official business address for E Fuels , LLC is :
803 Sable Oak Lane
Vero Beach , Florida 32963
The official business address for Preservation Energy , LLC is :
3003 NE Ivy Lane
Jenson Beach , Florida 34957
ATTORNEY OF RECORD
Lawrence E . Crary III
Crary Buchanan
555 Colorado Ave .
P . O . Drawer 24
Stuart, FL 34995
772 -287-2600
772-287 -0115 fax
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TEAM BIOS
Dustin Hulton , Principal , E Fuels , LLC , is responsible for business
development and operations . Dustin ' s experience includes developing and
executing waste contracts and managing the operations of daily truck routing and
recycling . He developed marketing and sales strategies for Winn - Dixie
Corporation resulting in an increase of sales revenues from 35 % to 40 % in six
months . Dustin knows the product placement and marketing business well .
Wait Hulton , Member, E Fuels , LLC , offers the technical expertise of the E
Fuels group . Walt has designed and set up waste operations for over 25 years .
He has been responsible for developing the initial business cases for these
operations including the financials and profitable alternatives for his businesses .
Walt has extensive experience in gasification design and operations where
electricity and other byproducts have been produced and sold for profit .
Bruce Hulton , Managing Member, E Fuels , LLC — was the owner/operator of
EnviroFuels , a waste hauling company which handled in excess of 220
containers daily . Bruce held a Florida ethanol license and produced ethanol by
processing waste for nearly three years . Bruce is a business developer and
manages contracts and the day -to-day operations of waste transportation .
Jim Jackson , Managing Member, Preservation Energy, LLC , is responsible
for power project development , with emphasis on the management of the
permitting and engineering processes in support of sales for P2 . Jim and his
partners have installed over eighty natural gas , propane , or diesel -fired backup
generation projects in locations from New Orleans to Key West . Jim is the lead
in the site qualification , contractor/consulting selection and design of backup
power systems . Jim Jackson brings over 30 years of energy related experience
where he focused on the management of power generation projects , specifically
project siting , development , regulatory compliance , permitting and licensing ,
impact assessments , engineering , procurement and construction . Prior to
forming Preservation Power , Jim worked with Foster Wheeler (formerly Ebasco )
Environmental for 24 years . Jim has managed the permitting and licensing for
nearly 20 power projects which total over 17 , 500 MW in Florida and along the
eastern United States .
Carl St. Cin , Managing Member, Preservation Energy , LLC , has over 30
years of engineering and project management experience with Florida electric
utilities and a variety of commercial industries including chemicals , textiles ,
metals , paper and land development . His primary focus has been project
management with emphasis on taking projects from design and permitting
through installation and operational phases for over 16 , 000 megawatts located
primarily in Florida . Specialty work areas include project management and
administration , process engineering , pollution monitoring and control , and
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regulatory analyses across all major environmental statutes . Project experience
includes electrical power generation and power plant licensing , solid /hazardous
waste management and remediation , water and wastewater treatment , multi -
media regulatory compliance , land development and natural resource
management , pollution prevention , and chemical process safety . Carl has
managed day-to -day coordination among engineers , scientists , consultants ,
subcontractors , utility clients , regulators and lawyers to develop , license and
construct new and replacement electrical generating capacity .
Ted Jonczak, Managing Member, Preservation Energy , LLC , has over 30
years of experience in the energy and services support industries , specializing in
project development , procurement and subcontract administration . Ted and
several members of PE were previously partnered from 2000 through 2006 and
codeveloped over 2 , 000 MW of natural gas-fired combined cycle power in south
Florida . His expertise is in the area of power plant contracted services , including
engineering , maintenance , construction , material management and capital
equipment purchases . Ted ' s previous experience also includes high level
procurement management positions at Florida Power & Light Company , Juno
Beach , Florida . Ted is also currently President of Power, LLC , currently involved
in the installation of over eighty backup generation projects .
Mike Bedley , Managing Member, Preservation Energy , LLC , is a partner
with APEX Power Services Corporation an affiliate of the American Power
Exchange , Inc . Mike has over 25 years of broad experience in the energy
industry , which included various engineering and financial management
positions with one of the countries larger electric utilities . Mike has held
positions in areas such as generation pricing , portfolio assessment
management , and energy trading . Mike ' s major responsibilities at APEX
include assisting large industrial , financial institutions , and municipal
governments , with current and long -term energy issues . This has become
particularly important in light of rising energy prices and the severe volatility at
both wholesale and retail market levels . Mike ' s other specialties include
renewable power development , providing expert witness testimony , and energy
commodity risk assessment . Mike represents many Fortune 500 companies
including TOTAL , Kinder Morgan , Morgan Stanley , and General Electric and
has testified at FERC , Federal Bankruptcy Courts and State Energy
Commissions on behalf of his customers . Along with his involvement in APEX ,
Mr. Bedley is generally recognized as an expert in his field acting as a resource
for CNBC/ Dow Jones , The Associated Press , CNN , Knight Ridder, national
trade publications , and several newspapers including the USA Today in areas
pertaining to electric utility regulation and free market competition .
Karen Branick, Managing Member, Preservation Energy , LLC , has over 20
years of experience in the energy industry including power plant performance ,
power plant operations , bulk power sales and environmental and regulatory
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affairs . Karen is very familiar with the Florida power market and the state
regulatory processes . She has enjoyed long term business relationships with
members of the PE team , where they developed over 2 , 000 megawatts of
independent power projects in Florida . Karen has applied her expertise in a wide
variety of industries : manufacturing which included plastics , hair care products ,
and pharmaceuticals ; power plants ; and corporate environments , focused on
marketing , regulatory requirements and strategic development. Karen ' s
experience during the 80 ' s and 90 ' s comes from working relationships with
Florida Power & Light Company and TECO Energy , Cardinal Health and the
Cleveland Clinic . As an expert in LEAN and Six Sigma , Karen has been able to
apply her process improvement and problem solving skills in every aspect of her
businesses .
Tom Macaulay Member, Preservation Energy, LLC . MGI is a real estate sales
and business consulting company providing real estate sales , appraisal and
business brokerage services since 1986 . MGI also provides advice and
counseling to small business owners , and manages the EDC Fund , Inc . , a non -
profit lending company whose mission is to provide funding to employers that
create or retain jobs in Rutland and Bennington Counties of Vermont . Tom is
also a principal in Glenville Holdings , LLC , a New York limited liability company
that is developing a 520 Mw natural gas-fired combined cycle electric generating
facility in the Schenectady , New York , area . He is responsible for oversight of
the public relations process , environmental permitting process and real estate
development components of the project .
Tom has thirty years of municipal planning and economic development
experience working for the City of Schenectady , New York , and the City of
Rutland , Vermont . He has also served on the Board of Aldermen for the City of
Rutland , and spent six years in the Vermont State Senate representing Rutland
County . In the State Senate , Tom chaired the Natural Resources and Energy
Committee , the Appropriations Committee and the bicameral Budget negotiations
committee . He served one year on the Republican National Committee as the
National Committeeman from Vermont. Tom holds a Masters degree in Public
Administration from the State University of New York at Albany , and a Bachelors
degree from Union College in Schenectady , New York , where he majored in
Mathematics .
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