Environmental Products & Technologies Corporation
The Company is a renewable “green” energy developer employing Opportunity Fuels with manure being the primary source of such fuel.
The Company was formed as a result of several years’ effort reviewing business opportunities in the bio-remediation market. It became evident that the last segment of the agricultural industry to have technology applied was any and all aspects of handling organic waste and the significant volumes generated either at harvest or on a daily basis from cattle, dairy, hog and poultry farms.
The Company proposes to market, sell, install and operate its technologies to assist dairy operators in their efforts to comply with (a) regulations initially promulgated by the United States Environmental Protection Agency (the “EPA”) February 12, 2003, and subsequently revised by court order, governing concentrated animal feeding operations (“CAFOs”), and (b) regulations established by Waste Discharge Requirements General Order R5-2007-0035 for Existing Milk Cow Dairies (the “General Order”), which was adopted by the California Regional Water Quality Control Board, Central Valley Region, in May 2007. The Company expects that its technologies will be used to dispose of animal waste manure through conversion of the manure into several marketable byproducts. The primary by-product is methane gas, which the Company, as agent for the owners of the facilities that utilize our technologies, expects to sell to public utility companies and inject into gas lines controlled by the public utility companies with the goal of supplanting hydrocarbon fuel the companies would otherwise have to obtain from alternative sources.
EPTC has spent the last ten years developing technologies and processes to address these needs and provide an affordable solution to the issues listed above.
The Company anticipates that its first project utilizing its Closed-loop Organics Management System (the “EPTC System” or “Power & Energy Center”) will be used as a model system (the “Model”) for other Power and Energy Centers to serve one or more diaries with a total herd size in excess of 10,000 cows including in excess of 6,000 lactating cows. This is also sometimes known as the anaerobic digester biogas field concept. A Power and Energy Center is expected to generate biomethane gas in volumes necessary to offset the cost of the biomethane gas scrubbing and treatment technology incorporated into the EPTC System. Certain organic waste materials (principally food production byproducts such as cheese whey and fats, oils and greases) that would be utilized by the EPTC System to significantly increase volumes of biomethane gas are plentiful and readily available.
The Company intends to generate most of its revenue from three possible sources of income identified in its current business model: (a) sale of the EPTC System and developer fees for oversight and management of the installation and commissioning of the equipment; (b) fees in connection with operation and management of the renewable energy facility under a long-term contract with the owner of the facility; and (c) marketing of all by-products generated by the facility under an agreement with the owner of the facility. Little or no revenue will be derived by the Company from ownership of the facilities.
As a common practice, dairies use lagoons as open storage pits for manure. These will be removed with a consequent reduction in, if not elimination of, flies and odors. It is also anticipated that manure will be treated and the salt load on croplands reduced below current levels, which is the driving force behind the above-referenced federal and state regulations.
Dairy owners or operators that finance and acquire an EPTC System are likely to generate carbon credits, renewable energy certificates (also known as RECs or “green tags”), and/or federal renewable energy tax credits on an ongoing basis. It is anticipated that some of the economic impact of such credits will inure to the benefit of the Company.