Converting Food Waste into Fertilizer - Flannery
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Transcript of Converting Food Waste into Fertilizer - Flannery
10th Annual Organics Recycling Summit
Presented by:Jim Coull
MassOrganics I LLC
COMPANY OVERVIEW
Who is Converted Organics?• Converted Organics is a company formed to convert
food waste into organic fertilizers for retail lawn & garden, professional turf, and agriculture markets
What do we do?• Accept wide mix of food waste from supermarkets,
then process it using “high temperature liquid composting” technology to produce organic fertilizers» Pathogen free, pasteurized at 1760 F for 48 hours
» Our products do not contain any manure, chicken waste, or bio-solids (treated sewer sludge)
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Food Waste
Expired/spoiled food from Supermarkets:Cereals and Grains
Fruits and VegetablesMeat and Fish
Fertilizer Sold
Retail lawn & garden, turf, and agriculture markets
Market
Supermarket sells produce Fertilizer Produced
Converted Organics processes waste into fertilizer
Crop Production
Agriculture Produces Crops
CONVERTED ORGANICS BUSINESS MODEL
Food waste represents 20% of U.S. solid waste stream and is land-filled, where it decomposes to produce methane gas
(20X more destructive than CO2 as a greenhouse gas).
BUSINESS MODEL HIGHLIGHTS
Build fertilizer plants adjacent to cities Convert food waste into a resource Substitute for petroleum-based synthetic
fertilizers Plants operate as perpetual urban
landfills Never fill-up Do not pollute
We get paid to take waste We get paid for our end-products
• Reduce greenhouse gases• Environmental sustainability
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2002 Established to pursue waste-to-fertilizer business
2003 Founders invest $3M to build company
2003 Secures license for technology
2004 Identifies location for first plant in New Jersey
2007 Completes $10M IPO
2007 Secures $17M project financing through NJ Economic Development Authority
2007 Begins building first plant in New Jersey
2008 Acquires assets of United Organics Products and Waste Recovery Industries of Gonzales, CA
2009 Production of fertilizers begins at NJ plant
2010 License signed - MassOrganics I Plant (Sutton, MA)
• Publicly-held company (NASD: COIN)• Raised $76M in capital to date
COMPANY TIMELINE
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Converted Organics diverts food waste from going to landfills– 250 million tons of food waste disposed of in U.S. landfills annually– When land-filled, food waste decomposes to produce methane gas– Methane gas is 20x more destructive than CO2 as greenhouse gas
Converted Organics fertilizer is a replacement for synthetic fertilizer– Converted Organics fertilizers do not contain any chemicals– The production of 1 ton of synthetic fertilizer requires the burning of enough
natural gas to release 4.6 tons of carbon dioxide into the atmosphere
Converted Organics fertilizers deliver dual environmental benefits– Reduce greenhouse gases by diverting food waste from landfills– Reduce greenhouse gases by replacing energy-intensive synthetic fertilizers
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WHY WHAT WE DO MATTERS?
Product Type
Products Retail Agriculture Golf Courses
Professional Lawn Care
Dry 8-1-4
4-1-8
Liquid 1-1-1
6-0-0
MARKETS AND PRODUCTS
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AGRICULTURE REPRESENTS 98% OF U.S. FERTILIZER DEMAND - 23M TONS, OR 40%, IS LIQUID FERTILIZER
Millions of Tons
Source: U.S. Fertilizer Institute and Scott’s Miracle-Gro Presentation
Converted Organics target markets
Market Product Type
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Dry Bulk
Liquid (includes anhydrous ammonia)
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Dry BaggedAgriculture
Non-Agriculture(Lawn & Garden,Professional Turf,Other)
THERE ARE SEVEN MILLION CERTIFIED ORGANIC FARM ACRES IN U.S., GROWING AT 12% CAGR
9Source: Organic Farming Research Foundation
THERE ARE 18,700 GOLF COURSES IN THE U.S. WITH INCREASING DEMAND FOR NATURALLY-BASED LIQUID FERTILIZERS DUE TO ENVIRONMENTAL CONCENRS
Public10,870
Private4,850
Municipal2,980
Source:Freedonia Golf Course Consumables to 2009
GOLF COURSES CAN REDUCE CHEMICAL INPUTS BY 50% AND CAN SWITCH FROM SYNTHETIC TO ORGANIC FERTILIZERS WITHOUT SACRIFICING TURF QUALITY
11Cornell Univ. U. Illinois
U.S. HOME LAWNCARE MARKET
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None 1 2 3 4 7-85 6
Mil
lio
ns
of
Ho
me
Law
ns
Applications Per Year
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40
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1 1
10
50% Do Nothing
We sell to consumer market via major retailers (30M U.S. homes)
80 million home lawns in U.S. covering 30 million acres
Source: Scotts Miracle-Gro (April 2008)
• Significant trend among “do-it-yourselfers” to buy natural or organic fertilizers
• Consumers demanding organic programs as alternative to synthetics from Professional Lawn Care Companies
We sell bulk fertilizer to Professional Lawn Care Companies (10M homes)
PRODUCT POSITIONING
• No synthetic chemicals• No manures• No chicken waste• No bio-solids• Pathogen free
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KEY SELLING POINTS – CONVERTED ORGANICS LAWN FERTILIZER
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Our product is unique - it does not contain any:–Synthetic chemicals–Chicken waste (Chickity Doo Doo, Espoma)–Bio-solids or human waste (Milorganite)
It is very competitively priced:–Converted Organics retails for $16.00 per bag–Scotts Organic Choice retails for $21.00 per bag–Both cover 4,000 ft.2
By diverting food waste from landfills where it decomposes to produce methane gas, we help to reduce greenhouse gases
Use of our product results in green, lush lawn because it is made from recycled plant matter, which contains all of the key nutrients
Our product is SAFE! It is made from recycled food waste and does not contain synthetic chemicals
Home Depot SKU# 353-343
Available at Home Depot in MA, CT, RI and Long Island, NY
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WAL-MART (FEBRUARY 2010)
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SAM’S CLUB (FEBRUARY, 2010)
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MassOrganics I LLC – SUTTON, MA PLANT
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• In February, 2010, Converted Organics entered into a license agreement with MassOrganics I LLC.
• MassOrganics I LLC will use Converted Organics proprietary system for the manufacture of organic fertilizer products.
• MassOrganics I will install and operate the system at a new manufacturing facility in Sutton, MA (open in December 2011):– Designed to receive 108 tons of food waste per day
• MassOrganics I will produce liquid and granular organic fertilizer:– 6M gallons of liquid fertilizer
– 8,000 tons of dry fertilizer
• In March 2009, Converted Organics received a permit from the Commonwealth of Massachusetts, Department of Environmental Protection to operate a food waste processing facility at the site
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CONTACTS
Jim CoullMassOrganics I
Converted Organics Inc. w: 978.461.0330c: [email protected]
David FlanneryVice President, MarketingConverted Organics Inc.w: 617.624.0111c: [email protected]
Converted Organics Inc.7A Commercial Wharf WestBoston, MA 02110617.624.0111617.624.0333 faxwww.convertedorganics.com
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