Clean Waste Disposal Facility in Denmark
Hughes Energy, LLC is seeking $159 million (excluding sponsor-contributed $12.3 million in equity) to construct a clean waste disposal (waste-to-value) facility in Stigsnaes, Denmark (75 miles from Copenhagen) – converts low-valued organic Municipal Solid Waste (MSW) into higher-valued green Wilson pellets for biomass electric power generation and other end-products.
Stigsnaes Project – plans to convert 370,000 tons of waste per annum into sanitized recoverable recyclables and green fuel pellets for use in biomass electric power generation
- Patented/proprietary green solution to increased waste volumes with “no place to go” – virtually no emissions and no incineration
- Strong support from local and federal government – pre-approval by Stigsnaes municipality
- Land purchase agreement – contract in-place
- Feedstock supply agreement – contract in-place
- Product offtake agreement – contract in-place
- Expansion potential – pipeline of additional European projects with feedstock and offtake providers
Management team has extensive experience in the waste and renewable energy technology and international business management and development – global experts in steam autoclaving engineering technologies
Climate change is an existential threat – and an enormous investment opportunity.
Greenhouse gas (GHG – including carbon dioxide CO2, methane, nitrous oxide NOx and fluorinated gases) emissions have increased since the beginning of the industrial era – building up in the atmosphere and warming the earth’s climate
- Methane is 84 times more damaging as a GHG than CO2
- 16% of global methane is emitted by rotting organics in landfills
Denmark is one of 122 signatories of the Global Climate Pledge to urgently reduce methane emissions
- Politically stable and developed with a high-income economy
- AAA credit rating
- Rated #1 in Europe for ease of doing business
European Economic Area (EEA) estimated climate-related economic losses totaled EUR 446 billion between 1980-2019
Waste Disposal – Outdated and Limited
Little has changed in how waste is disposed.
World generated about 2 billion tonnes of MSW per annum in 2018 – unchecked, may surge to 3.4 billion tonnes by 2050
Cost of disposal rising in the European Union (EU) – waste volumes and tipping prices increasing
Landfills and incineration – common option in developed countries
- Landfill sites – organic MSW are major sources of methane emissions
- Waste incineration – historically, dominated in the waste-to-energy sector
Ground, water, and oceans – common option in undeveloped countries
Green Energy – Waste-to-Value
Green energy technologies promise environmental solutions – estimated market potential near $800 billion (about 55% storage, electrification, carbon capture, other; and about 45% renewable energy).
Global wood pellet demand was 42.3 million tonnes in 2021 and expected to reach 75.8 million by 2030
- Demand as a green fuel is growing rapidly as a substitute for traditional fossil fuels
- Currently relies on use supplies or fell valuable timber forests – recent EU ruling eliminated subsidies for wood pellet power generation from whole trees
Denmark is EU’s second largest importer of wood pellets
Waste-to-Value – Emerging Technologies
Waste-to-value” technology are in the early stage of adoption and represent a signficant high-margin growth opportunity. Corporate social responsibility and government regulatory efforts support accelerating demand for sustainable disposal technologies.
Autoclaves – thousands of industrial autoclaves operating worldwide; in 2022, over 12 operators of steam autoclaves were used in organic waste and MSW processing
Anaerobic digestion – widely used in Denmark and Europe; Denmark challenges – most are agricultural facilities which are manure-based and produce biogas; European challenges – closing digestors in certain countries because of the inability to dispose of increased volumes
Pyrolysis – early stage and struggles with non-homogenous nature of MSW feedstock; significant cost and effort required to pre-treat MSW before use
Gasification – not yet been built due to problems with scale and product consistency; struggles with non-homogenous nature of MSW feedstock; significant cost required to pre-treatment of incoming feedstock
Hughes Energy is a green-tech company providing a low-carbon solution to waste management.
Wilson System® technology offers a clean waste disposal (“waste-to-value”) solution to current methods (landfill incineration, dumping) which are costly and harmful to the environment
- Cost-effective, simple, steam-based proprietary technology with first mover technology
- Strategic partial solution to global environmental problems for waste disposal and GHG emissions
- Environmental benefits include reduced landfill usage as well as reduction of harmful carbon / CO2 and methane emissions
Clean waste disposal (“waste-to-value”) facilities use Wilson System® technology to convert low-valued organic MSW into green Wilson pellets for biomass electric power generation and other higher-valued end-products.
- Cuts waste destined for landfills by 85-95% – drastically reducing the production of methane from organic MSW
- Diverts over 350,000 tons of waste from landfill sites per facility per annum
- Eliminates up to 400,000 tons of CO2 emissions per facility per annum – apply for carbon credits
Reduces risks of uncertainty related to organic MSW disposal to municipalities and waste companies
- Limits disposal costs – Hughes can lock-in tipping fees for up to 10 years
- Scalable expansion capacity – newbuilds are affordable and efficient
Unique revenue generation – from both raw material and end-products.
Raw material – paid to take organic MSW
- 58% of revenues – collection of gate fees from waste feedstock providers
- 31% of revenues – sale of Wilson Fibre® for green fuel pellets or other bio-products
- 11% of revenues – sale of sanitized recyclables such as aluminum, plastic, glass, and ferrous metals
End-product – Wilson Fibre® converted into green fuel pellets/bio-products and sale of santized recovered recyclables
- Inert materials (about 12% of MSW processed) – not processed represents a nominal cost for disposal
- Base case includes disposal costs, but future plans are for reuse and/or recycle
Hughes / Wilson System® – Partners
Hughes is the commercial arm for the Wilson System®.
System sales, annual maintenance contracts, annual royalty fees (CleanTech franchise model)
Sole license holder for the Wilson System® in North America
- 10-year term with right to renew for a second term
- Other geographic locations by exclusive license agreement with Wilson Bio-Chemical (WBC)
- Hughes owner is a major shareholder of WBC
Stigsnaes Project – Problem
PROBLEM – Waste volumes are increasing, but disposal options are declining and limited.
- Location – Stigsnaes, Denmark (75 miles from Copenhagen)
- Landfilling ban – all waste is currently incinerated
- Biomass pellets – supply shortage but demand is strong
Stigsnaes Project – Solution
SOLUTION – Hughes / Wilson System®.
Sigsnaes facility – converts 370,000 tons of waste per annum (amount produced by 435,000 Danish citizens) into sanitized recoverable recyclables and Wilson Fibre® transformed into green Wilson pellets for use in biomass electric power generation
- Hughes facility uses green technology with virtually no emissions – not incineration
- Cuts waste volumes destined for landfill by 85-90% – after recovering recyclables and production of Wilson Fibre®
- Reduces GHG emissions – cuts production of methane from organic MSW from landfill sites
- Land purchase – sale agreed; contract in-process for 10 acres on 123-acre site
- Organic MSW feedstock – 25-year contract in-place, Put or Pay
- Off-take/product contracts – 25-year contract in-place, Take or Pay
Permits and zoning
- Pre-approved by Stigsnaes municipality – based on materials and drawings (Copenhagen-based RAMBOLL)
- Operating permit – in-process
- Site approval permit – in-process
- Zoned – as a heavy industry site where a wastewater treatment plant sits, next to an oil storage terminal and two deep water ports (not a greenfield site)
Brendon Hughes – Chairman and Founder
Over 30 years of experience in the construction industry. In 1988, founded Hughes and Hughes Contracting Corporation which served corporate, commercial, and residential markets within New York City and the Tristate Area. In 2005, turned attention to the waste and renewable energy sector. Major shareholder in Wilson Bio-Chemicals, the parent company to the Wilson System®. In 2014, founded Hughes Energy as the exclusive distribution channel for the Wilson System® technology in North America.
Dane McSpedon – Chief Executive Officer
Over 25 years in international business management and strategic sales expertise – successfully building companies with complex technologies. Joined Hughes Energy in 2013, raised Series A funding and attracted key members of the team. Started career in Russia establishing and managing the local affiliates for IBM, Honeywell and Kelly Services. Managed 18 country affiliates and established sales distributors in over 65 countries while running Global Sales and Services at De La Rue. Established new operations in Central and South America for AVA (an international secure logistics company). BA (Magna Cum Laude) from Colgate University. Leningrad State University (Russia). Executive Education in Advanced Corporate Leadership, Leading Change and Organizational Renewal from Harvard Business School.
Kevin MacCullough, CA, CPA – Chief Financial Officer
Over 20 years of experience in corporate finance and accounting. Joined Hughes Energy in 2022. Previously served as CFO and Financial Controller for Euro Lithium; Financial Controller for Island Ford (Duncan); Financial Controller for GAIN Group companies; Associate and Analyst at XLX (formerly Excel Coal); Investment Analyst at Rand Merchant Bank (Sydney); Equity Analyst at Sovereign Asset Management (Dubai); Manager (Corporate Finance & Audit) at Deloitte. Chartered Accountant (CA – Canada). CPA (2002 – Canada). CFA Charterholder. (Canada) B.A. in Commerce (Accounting) from the University of Calgary.
Frank X. DarConte, PhD, RA – Director, Program Management
Over 32 years of experience in senior construction management focused on pre-construction services at a regional and national scale. Director of Applied Research – IDC Innovation Hub, NYU Tandon School of Engineering – Department of Civil and Urban Engineering. Principal Consultant, Garrison Advisory. Previously served as Vice President – Planning and Development at The DeMatteis Organizations; Vice President at W.J. Northridge Construction; Principal at Park East Construction; and Project Manager at Leon D. DeMatteis Construction. PhD in Civil Engineering from New York University, Tandon School of Engineering.
Saira Nazneen – Director, European Business Development
Over 25 years of business management experience in international sales, service, consultancy and project management in banking, manufacturing and government. Joined Hughes Energy in 2018, attracted by the opportunity to support the global effort to realize a “zero carbon world”. Prior Head of Sales – Europe and Central Banks, De La Rue; Head of Service – UK and ROI, Currency Systems International; and Project Manager, Barclays Bank plc. PRINCE2® Practitioner. Trained in Miller- Heiman Strategic Selling. Higher National Diploma (HND) in Business Studies from Coventry University.
Tom Wilson – Non-Executive Director
Wilson System® designer, investor and chief steam autoclave engineer. Over 50 years of engineering experience within the steam industry and a recognized international expert in steam storage. Lead steam process design engineer for international companies – including British Gas and the British nuclear industry – within steel, textiles, plastics, food and biotechnology. For the past 10 years, focused within the waste management sector – validating steam autoclaving municipal solid waste as a viable solution to environmental problems. Higher National Diploma (HND) in Mechanical Engineering from Sheffield Hallam University (formerly Sheffield Polytechnic).
Rob McCurdy – Board Member
Over 40 years of leading international business development within the renewable energy industry. Since 2021, providing advice to Pinnacle Board and consulting through McCurdy Consulting. Former CEO of Pinnacle Environmental (Vancouver, BC) – build company into one of the largest biomass producers in the world. Previously held senior positions at Lafarge, such as Managing Director for Lafarge India, CEO Ready Mix, and Vice President for Lafarge – (Paris) France and North America. EY Entrepreneur of the Year, Canadian Pacific Region – 2018. B.S. Metallurgical Engineering from Queens University (Ontario).
Jatish Shah – Senior Board Financial Advisor
Over 30 years of international finance and operational experience in emerging and developed markets – developing early-stage companies and bringing new technology to market. Joined Hughes Energy in 2014 in advisory and financial roles. Previously, Finance Director and CFO in a variety of industries for over 15 years. Extensive experience within multinational organizations and SME businesses – developing companies, executing business projects, raising capital and working with Venture Capital and Private Equity investors. Qualified Chartered Management Accountant (ACMA -UK). BA (Honors) in Business Studies from the London Metropolitan University (formerly – City Of London Polytechnic).