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Transforming hazardous waste into clean, green products Innovative Green Chemistry® CONFIDENTIAL

Glyeco presentation_Oct_2014

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Glyeco presentation_Oct_2014

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Page 1: Glyeco presentation_Oct_2014

Transforming hazardous waste into clean, green products

Innovative Green Chemistry®

CONFIDENTIAL

Page 2: Glyeco presentation_Oct_2014

Safe Harbor Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. This presentation is not intended for general solicitation and is neither an offer to sell, nor solicitation of offers to buy securities. The information contained herein has been prepared to assist interested parties in making their evaluation of the Company and does not purport to contain all of the information that a party may desire. In all cases, interested parties should conduct and rely on their own investigation and analysis of the Company and the data set forth herein. No part of these pages, either text or image may be used for any purpose other than personal use. Therefore, reproduction, modification, storage in a retrieval system or retransmission, in any form or by any means, electronic, mechanical, or otherwise, for reasons other than personal use, is strictly prohibited without the Company’s prior written permission.

Copyright and Trademark ©2014 GlyEco, Inc. All information contained in this presentation is the confidential, proprietary, and trade secret information of GlyEco, Inc. and cannot be disclosed, reproduced, or distributed without the prior written consent of GlyEco, Inc. "GlyEco®"; "Innovative Green Chemistry®"; "GlyEco Technology™”; "GlyEco Certified®”; and “T1™“ are trademarks of GlyEco, Inc. or its affiliates or related entities in the United States and/or other countries. All rights reserved.  

CONFIDENTIAL

Page 3: Glyeco presentation_Oct_2014

•  GlyEco® is a green chemistry company with a breakthrough, patent-pending technology for recycling waste glycol, a hazardous material, into usable, clean glycol.

•  Our GlyEco TechnologyTM has the unique ability to clean waste

glycol from all five major waste-producing industries: HVAC, Textiles, Automotive, Airline, and Medical, into a virgin-quality product that meets the specifications of ASTM E1177 Type 1 (“T1TM”) – the level of purity expected of refinery-grade glycol.

•  GlyEco® was founded in 2006 and became a public company in November of 2011. Our common stock is traded on the OTCQB under the symbol “GLYE.”

CONFIDENTIAL

Page 4: Glyeco presentation_Oct_2014

•  Global consumption for refinery-produced ethylene glycol is over 5.5 billion gallons per year and climbing at a rate of approximately 200 million gallons per year.

•  Over 700 million gallons of waste glycol are created each year in the United States alone.

•  The EPA estimates that only 12% of waste antifreeze is recycled.

CONFIDENTIAL

Page 5: Glyeco presentation_Oct_2014

AUTOMOTIVE  202,000,000  GALLONS  PER  YEAR  

TEXTILES  193,300,000  GALLONS  PER  YEAR  

AIRLINE  35,000,000  

GALLONS  PER  YEAR  

MEDICAL  32,130,000  

GALLONS  PER  YEAR  

HVAC  234,000,000  GALLONS  PER  YEAR  

CONFIDENTIAL

Page 6: Glyeco presentation_Oct_2014

•  The target price range for T1TM recycled glycol is similar to refinery-grade ethylene glycol pricing.

•  According to ICIS Chemical, the benchmark price for ethylene glycol is approximately $5.40 per gallon (as of Spring 2014).*

•  Customers generally receive a discount below the benchmark price depending upon the amount of ethylene glycol they purchase (e.g., large volume buyers).

*Pricing is subject to change depending upon various market conditions.

CONFIDENTIAL

Page 7: Glyeco presentation_Oct_2014

•  We currently operate seven processing centers in the United States. These processing centers are located in (1) Minneapolis, MN, (2) Indianapolis, IN, (3) Lakeland, FL, (4) Elizabeth, NJ, (5) Rock Hill, SC, (6) Tea, SD, and (7) Landover, MD.

•  Our operations strategically span several regions, and therefore allow us to provide waste glycol recycling to both national and regional waste generators alike.

•  Our corporate office is located in Phoenix, AZ.

CONFIDENTIAL

Page 8: Glyeco presentation_Oct_2014

•  Our processing center in New Jersey (the “New Jersey processing center”) receives waste glycol material in bulk by railcar and recycles such material into glycol concentrate. The glycol concentrate is then sold to certain large volume customers (e.g., antifreeze blenders / distributors, military, government).

•  Our processing centers in Minnesota, Indiana, Florida, South Carolina, South Dakota, and Maryland recycle waste glycol into fully formulated antifreeze, heat-transfer fluids, and recycled glycols. These products are resold into the market, often to the same customers that generate the waste glycol (e.g., automotive repair shops). These processing centers provide collection, recycling, and disposal services to over 3,500 waste glycol generators.

Page 9: Glyeco presentation_Oct_2014

CONFIDENTIAL

Page 10: Glyeco presentation_Oct_2014

•  We have received certification from multiple A2LA accredited laboratories that our GlyEco TechnologyTM recycled glycol meets the specifications of ASTM E1177 Type 1 (“T1TM”) - the level of purity expected of refinery-grade glycol.

•  We completed implementation of the first phase of GlyEco TechnologyTM upgrades at our New Jersey processing center in 2013, and we’ve since been producing and selling T1TM recycled glycol in commercial quantities.

•  Customer response has been very favorable and demand for T1TM recycled glycol currently exceeds our processing capabilities.

CONFIDENTIAL

Page 11: Glyeco presentation_Oct_2014

•  We are currently in Phase 2 of technology upgrades at our New Jersey processing center, which includes the installation of additional storage, increased throughput capabilities, and enhanced technological components.

•  We anticipate ramping up the annual production capacity at our New Jersey processing center gradually according to the following progression: •  Phase 1: 2.5 – 5 million gallons per year •  Phase 2: 5 – 7 million gallons per year •  Phase 3: 12 – 15 million gallons per year

CONFIDENTIAL

Page 12: Glyeco presentation_Oct_2014

•  Production capacity at our New Jersey processing center has increased 500% since beginning operations in January 2013 and is currently at 5 million gallons.

•  Further improvements are scheduled through the end of 2014 to ultimately reach a production capacity of 12-15 million gallons.

•  We have been issued a Class D Permit by the New Jersey Department of Environmental Protection (“NJ DEP”) that allows us to recycle waste glycol. The NJ DEP has issued only a small number of such Class D permits, and industry experts consider the permit to be a multi-million dollar asset.

CONFIDENTIAL

Page 13: Glyeco presentation_Oct_2014

   

       HAZARDOUS  

WASTE  GLYECO    

TECHNOLOGY™  RECYCLED  GLYCOL  

GLYECO  CERTIFIED®  

POLLUTED  GLYCOLS  

TYPE  1  &  TYPE  2  MATERIAL  

PATENT-­‐PENDING  PROCESS  

FAMILY  OF  GREEN  PRODUCTS  

CONFIDENTIAL

Page 14: Glyeco presentation_Oct_2014

•  We have increased our market share in the United States, and intend to continue to do so, by consolidating feedstock supply through partnering with waste collection companies and acquiring other companies with glycol recycling operations.

•  We are also moving our GlyEco TechnologyTM into international markets and intend to continue doing so by further pursuing and developing relationships in geographical areas where we believe glycol recycling is an underserved market, including Canada, Europe, and Asia.

CONFIDENTIAL

Page 15: Glyeco presentation_Oct_2014

While the glycol recycling industry is developed in North America, there is significant potential to expand the industry internationally. With its proprietary technology capable of recycling all five streams, GlyEco, Inc. (“GlyEco”) can access large volumes of waste glycol internationally—specifically targeting polyester manufacturers in Asia and waste collectors in Europe. The polyester manufacturing industry has gone through substantial consolidation over the last ten years, leaving 10-15 companies controlling the majority of the global market. GlyEco is currently in different stages of development with multiple waste collectors and polyester companies in Europe, the Middle East, and Asia.

North  America  14%  

South  America  

Europe  10%  

•  Over 7 billion gallons consumed per year worldwide •  3-10 million gallons of waste glycol per polyester plant each year •  Initial Expansion Targets: North America, Europe, Middle East & Asia •  Business Model: Operating agreement

Asia  

Sources: IHS; ICIS; Invista; Technon Orbichem

Middle  East  

68%  

CONFIDENTIAL  

Page 16: Glyeco presentation_Oct_2014

•  GlyEco is registered to process waste glycol from customers in the provinces of Manitoba, New Brunswick, Ontario, Quebec, and Saskatchewan.

•  We are the only registered glycol processor in Canada capable of recycling all types of waste glycol to meet ASTM E1177 standards.

•  We are ramping up our activities in Canada and have sourced approximately 30k – 40k gallons of waste glycol available for processing per month.

CONFIDENTIAL

Page 17: Glyeco presentation_Oct_2014

•  We are in discussions with certain strategic partners to implement our GlyEco TechnologyTM internationally.

•  UK - 2 customers, 2 plants: 7-8 million gallons

•  Turkey - 1 customer, 1 plant: 4-5 million gallons

•  Middle East - 1 customer, 2 plants: 5-6 million gallons

•  China - 1 customers, 1 plant: 10-15 million gallons

•  Global Multi-National – 1 customer, 6 plants: approximately 50 million gallons

 

 

CONFIDENTIAL

Page 18: Glyeco presentation_Oct_2014

John Lorenz Chairman, Chief Executive Officer & President Over 30 years of executive management experience in the solid waste industry with extensive experience in mergers and acquisitions.

Richard Geib Chief Technology Officer Senior chemical engineer with a 30-year background in the glycol industry, including serving as Chairman of the ASTM Coolants Committee.

Todd Smith Chief Operating Officer More than 21 years of management experience in the glycol recycling industry.

CONFIDENTIAL

Page 19: Glyeco presentation_Oct_2014

Tex?le  Waste   Used  An?freeze  

Used  HVAC  Coolant  

AircraM  Deicing  Runoff  

Steriliza?on  Waste  

CONFIDENTIAL

Page 20: Glyeco presentation_Oct_2014

Plas?c  BoRles   Polyester  Fiber   Recycled  An?freeze  

Glycol  Concentrate  

CONFIDENTIAL