2017 Colorado Waste Tire Conference

June  22,  2017

Our  Vision

Divert  more  solid  waste  away  from  landfills  than  any  other  single  effort  within  the  next  10  years.  

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Doing  Well  by  Doing  Good

We’ve  created  a  systematic  process  for  converting  waste  tires  to  valuable  bi-products  in  a  fully  sustainable  manner

SOCIAL

ENVIRONMENTAL

FINANCIAL

TRIPLE-BOTTOM  LINESUSTAINABILITY

• Reduce  scrap  tires  in  landfills• Reduce  tires  incinerated  for  fuel• Reduce  toxic  carbon  production

• Large  feedstock  and  offtake  markets• Investment  grade  returns  w/o  subsidies• Subsidies/incentives  improve  returns

• Create  manufacturing  jobs  in  the  US• Drive  US  economic  growth,  reduce  dependency  on  foreign  supply

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Sustainability  |  Two  Problems

Virgin  Carbon  Black  is  a  Major  Pollutant

Waste  Tires  are  an  Environmental  Disaster

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Sustainability  |  Two  Problems

1  approximate  waste  tires  disposed  of  annually  in  the  U.S.  2  approximate  annual  consumption  in  the  North  America3  impacts  based  on  internal  lifecycle  analysis  technically  reviewed  by  ThinkStep

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Carbon  black  is  in  nearly  every  rubber  and  black  plastic  product  and  80%  of  carbon  black  is  used  to  make  tires

300,000,000  WASTE  TIRES1

Current  efforts  do  not  include  a  complete  solution:

• ~50%  of  waste  tires  are  incinerated

• Downcycling,  not  recycling

• Fickle,  unstable  markets  

CO2e equal  to  2.6 million  cars

H2O  equal  to 39  trillion  gallons

kWh  equal  to 630,000  homes

3.2  Billion LBS  CARBON  BLACK2

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Sustainability  |  Our  Single  Solution

Bolder  Black™33%

Steel15%

Gas10%

Oil40%

Upcycle  Waste  Tires

Converting  98%  of  Tire  to  Valuable  Products

Offering  a  Sustainable  Alternative  to  Virgin  Carbon  Black

Create  Bolder  Black™

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Sustainability  |  Product  Applications

Industrial  Manufacture

Building  and  Construction  Materials Automotive

Components Electronics

Furniture

Consumer  Goods

Traffic  Bollard  BaseConveyor  Belt Cooler  Pull  Tab Office  Chair

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FOR  EVERY  1  TON  OF  CARBON  BLACK  PRODUCED

Bolder  Black  uses  1.3  gallons  of  water  vs.  98.7  gallons  for  VCB

Bolder  Black  produces  .35  tons  of  CO2e  vs.  7.88  tons*  for  VCB

Bolder  Black  uses  1/3  of  

the  electricity  of  VCB  

“This  is  exactly  the  kind  of  next  step  we  are looking for.”  –Patagonia

Sustainability  |  Our  Impact

What is Pyrolysis?

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What  is  Pyrolysis?

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Pyrolysis IS  NOT… Pyrolysis  IS…

A Magic  Bullet A Core  Piece  of  the  Puzzle

Easy /  Simple Complicated  to  get  right

Mechanical Thermochemical

Combustion  / Incineration Thermochemical

Process  7.5%of  the  300MM+  tires  discarded  annually  

150MM  lbs BB3%  of  annual  US  VCB  

Market10  Facilities  in  U.S.

100  Facilities  Globally1.5B  lbs BB~6%  of  Global  VCB  

Market

Process  13%  of  the  ~1.5B  tires  

discarded  globally/year

Small  Change,  Big  Impact

Power  of  Pyrolysis  at  Scale

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A  core  component  of  a  comprehensive  tire  solution  with  massive  offtake  markets  when  approached  correctly.

What’s Holding rCB Back?

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What’s  Holding  rCB Back?

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PRODUCT• Behaving  as  VCB  product• rCB is  not  renewable/No  REC  credits• Product  consistency  has  lacked

MARKET• Commodity  market  but  highly  sophisticated• Financing  is  difficult:  Risk/Reward  formula  not  established

OPERATIONS• Slow  to  adopt  the  perspective of  an  advanced  manufacturing  business  

• Technology  just  now  getting  there

Why We’re Different

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Whole  tires  enter  shredder,  steel  wire  and  fiber  is  extracted  leaving  rubber  feedstock  for  processing.

Rubber  fed  into  a  reactor,  thermal  decomposition  of  hydrocarbon  chains  begins  (in  a  combustion  free  environment),  superheated  gas  leaves  solid  carbon  product  and  oil.

Step  1:  Shredding  Line

Superheated  gas  is  condensed  into  oil  while  uncondensed  gas  is  used  to  power  the  process.  Solid  carbon  product  enters  proprietary  finishing  process  to  create  Bolder  Black.

Why  We’re  Different  |Our  Process

Rubber Steel

Bolder  Black Reclaimed  Oil Gas

Waste  Tires

Step  2:  Production  Line

Step  3:  Finishing  Line

Used  toPower  Facility

Sold  to  Recyclers

Environmental  Impact-90%  CO2e          -90%  H2ONet  Energy  Positive

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Tour  group  viewing  the  primary  shredder,  capable  of  processing  3,000  whole  tires  per  day.

From  top  left:  Tires  awaiting  processing,  processing  line,  final  stage  of  tire  shredding  before  crumb  enters  facility  on  conveyor,  fine  crumb  ready  for  pyrolysis.

Our  Process  |  Shredding  Line

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Tour  group  directly  in  front  of  pyrolysis  line  where  carbon  and  oil  is  extracted  from  crumb  and  synthetic  gas  is  created  to  power  the  process.

Tony  Wibbeler,  CEO,  Ken  Dunn,  

Director  of  Sustainability,  sharing  the  

environmental  impact  of  Bolder  Black  production.  

leading  group  through  

production  process.

Our  Process  |  Production  Line  

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Tour  group  moving  from  pyrolysis  area  to  pelletizing  line  inside  MCS  facility.

Group  learning  how  Bolder  Black  is  pelletized.

Pelletized  Bolder  Black.

Our  Process  |  Finishing  Line  

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Why  We’re  Different

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RESEARCH• Met  with  +20  tire  pyro  companies  — good,  bad,  ugly• Previous  customers  opened  up  about  problems• MCS  acquisition  came  with  lots  of  data

OPERATIONS/PRODUCT  DEVELOPMENT• Bolder  Black  =  ASTM  Grades  (e.g.  N660)• Our  Process:  25%  Pyro  /  75%  Other• Work  WITH  tire  collection  and  shredding  businesses

SALES/MARKETING• Co-develop  products  with  customers• BB  as  a  high-impact,  sustainability  compliance  solution

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Bolder  Black   150MM  lbsReclaimed  Oil   25MM  gallonsRecycled  Steel 32K  tons

an  Environmental  Offset  of…

CO2e 540K  tons  Water 1.7B  gallons

Electricity 209MM  kWh/year

which  is  equivalent  to…

Operating  10  facilities  by  2020,  we’ll  convert  20MM  tires  per  year  into…

CO2e equal  to  110,000  Cars

H2O  equal  to  18B  water  bottleskWh  equal  to  19,000  homes

Looking  Forward

1 impacts  based  on  internal  lifecycle  analysis  technically  reviewed  by  ThinkStep )  https://www.thinkstep.com/)

Enough tires to fill Cowboys Stadium 4x every year.

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Bolder  Black   1.5B  lbsReclaimed  Oil   250MM  gallonsRecycled  Steel 320K  tons

an  Environmental  Offset  of…

CO2e 5.4MM  tons  Water 17.0B  gallons

Electricity 2.1B  kWh/year

which  is  equivalent  to…

Operating  100  facilities  globally,  we’ll  convert  200MM  tires  per  year  into…

CO2e equal  to  1.1MM  Cars

H2O  equal  to  180B  water  bottleskWh  equal  to  190K  homes

Looking  Forward

1 impacts  based  on  internal  lifecycle  analysis  technically  reviewed  by  ThinkStep )  https://www.thinkstep.com/)

Thank you