Green/Energy
Plastic Fueled Combustor Technology
business plan
GR Technologies Co., Ltd
Keep Green & Heating the world
Vision Manifesto
GR Technologies is positioned to become a
leading global provider in a long overdue, diversified
marketplace with optimally designed,
adaptive
technologies using a
green-clean, energy safe approach.
P.1
Contact Us
This material is based on the aspects of the Korean market due to open
subjective understanding.
Detailed information has been attached to give objectivity but it’s not completely
finished because of on-going U.S Standardizing Testing.
It contains confidential matters both technical and operational.
This material and any conveyance to any third party of the ideas, concepts, and/or
market/technical relationships newly described herein, signifies a contract breech,
a willful act of disclosure with the sole intent of illicit financial gain at the expense
of GRT and her corporate partners.
GRT recognizes without dispute the intellectual property of recipient and agrees
not to disclose any proprietary intellectual property presented from GRT without
the expressed permission of GR Technologies/Associates.
T.82-2-3452-9159
F.82-2-3452-2029
info@highgr.com
Keep Green & Heating the world P.2
Contents
1. Company information P.4 4. Product technological characteristic
1. Company Introduction 5. Product Advantage
2. Profile of CEO 6. Product Application Field
3. Profile of Personnel 7. Advantage to Competitive Company
4. Organization and Majority Shareholders
5. Company History 5. Fuel Introduction P.38
6. Prospect of Company 1. Fuel process flow chart
7. Revenue Objective 2. Plastic fuel introduction
3. Plastic fuel combustion technical principle
2.Business contents P.10 4. Plastic fuel visual
1. Business Introduction 5. Waste Plastic and Environmental and economical problems
2. Business outline 6. Fuel Supply and Demand strategy
3. PF Boiler Industry Characteristic and penetration
4. Profit Model
5. Turnover Structure 6. Business strategy P.43
6. Industry Characteristic (Preceding Boiler Industry)1.2 1. Company management and international corporation establishment
7. Market Analysis 2. Forecast of market size
8. Market Competitiveness Analysis 3. Forecast of Korea boiler industry demand
9. Current Status of Boiler Market 4. Forecast of world boiler industry demand (estimated)
5. Market penetration strategy
3. Technology Introduction P.21 6. Marketing PR plans
1. PF Boiler Technology Outline
7. Sales plans
1-1. Burner Technology Development Background
1-2. Plastic Fueled Combustion Burner Development Achievements
8. R&D plans
1-3. Related Industry and Application Field 9. Production & Sales Plans 1.2
2. Technology Level and Trend 10. Boiler Manufacturing factory establishment and operation
3. Technology Level and Trend (explanation of terms) 11. Required manpower plans
4. Technology Influence Effect 1.2
5. Technology & Economical Effect Analysis
6. Economical Efficiency Analysis 7. SWOT Analysis P.57
7. PF Boiler Competitive Product Difference 8. Finance material P.58
8. Air Emission Analysis Chart
9. Investment proposal P.63
4. Product Introduction P.31 10. Current Proceedings – USA1.2 P.70
1. Burner Component Visual 11. Miscellaneous P.72
2. Product Outline
3. Product Development Status
Keep Green & Heating the world P.3
1. Company information
1. Company Introduction
Company overview
Name : GR Technologies Co.,Ltd
CEO : William (HunKyun) Bang
Address : #201 Samsung anytel, 837-17 Yeoksam-dong, Kangnam-gu, Seoul, Korea
Tel : (02)3452-9159
Established : April 4. 2000
Escrow Account Settlement : June 30th
Paid in Capital : $3.2 Million
Business Line : Manufacturing, Wholesale and Retail
Type of Business: Recycled Plastic Fueled Conversion technology
Product : Plastic Fueled Burner and Boiler
No. of employees :17
(R&D : 10 people , management and others :7 people)
Keep Green & Heating the world P.4
1. Company Introduction
2. Profile of CEO
Employment History
2000-Present Chair/CEO, GR Technologies Inc
(Technology R&D Company-Korean Company)
1998-1999 Chair/CEO, DVBS Bahama Corporation
(Digital Video CoDec Technology Development Corporation,
and it’s RTO into NQB in Public Nov 1999 and Trading
at US$16.75)
1997-1998 CFO, Internet Broadcasting System
(Internet Streaming Technology R&D Company)
1997-1994 Co-Founder, Mayer-Bang Production
(Independent Film Production and Promotion Company)
1990-1992 Marketing, UIP-CIC Korea Inc
(Film Distribution Company)
Education
2001-2002 MBA Program, KAIST University
2000-2001 MBA Program, Korea University
1984-1990 Gangnung National University
(Graduated in 1990 with M.A in Economy)
1981-1984 Gangnung High School
(Graduated in 1984)
Keep Green & Heating the world P.5
1. Company Information
3. Profile of Personnel
Category Name Position Education and Career
SK Ko Director Ph. D of Steel and Metal Choongnam University/CEO of AD Fine Inc
Board HJ Lee Director Chinese medicine Doctor / President of a Chinese medicine hospital
member
SH Jung Auditor B.A in law/ Worked in a court of justice and commercial registry office
HJ Kim Ph.D of machine engineering/ Staff Researcher of Korea Energy Technology
Advisor Institute
MS Lee Engineer Precision Engineering / Combustor manufacturing
HM Park Engineer Precision Engineering / boiler manufacturing / factory management
Product
JK Lee Manager Computer science/ boiler controller design & production
developm
ent
JS Kim Supervisor Computer science/ boiler controller production
YJ Suh Engineer Machine design / boiler machine design
YS Kim Engineer Machine design / boiler machine design
Manager Graduated from Sungkyungwan university majored in law/ judicial scrivener, in
KW Lee
charge of judicial affairs
Administr
ation KC Lim Manager Engineering/ Korea highway Corporation & In administration in ADD
BA in Accounting Kangreung University,/ General manager in Encom &
CS Kim Accountant managing director in GSN
Dr. James W. PE in Ag & Bio Eng in PSU / Plastic fuel research
Cooperator Plastic fuel development and test
Garth
Dr. William J. Professor in horticulture in PSU /Plastic re-treatment research
Cooperator Plastic fuel development and test
USA Lamont
Dr. Michael D. Professor in horticulture in PSU/ Plastic re-treatment research
Cooperator Plastic fuel development and test
Orzolek
Dr. Ke Professor in Entomology in PSU/ Evaluation research for environmental
Advisor influence from the plastic burning
Chung Kim
Keep Green & Heating the world P.6
1. Company information
4. Organization and Majority Shareholders
A. Organization Chart
CEO
Audit & Board of
Inspection Directors
Finance / Admin & Marketing R&D Manufacturing
Accounting General affairs
HR 1.Development Factory Management
Incomings & Sales Assembly
outgoings
General affairs Sales & Marketing External order
Accounting 2.Application
PR management
Purchase Assets
A/S 3.Implementation Inventory
Operation management and Field test
B. Majority shareholders (unit:10,000stocks)
700
600
500
400 52%
300
27%
200
14.75%
100 6.25%
0
Total William Bang Hwang Jung won Kim Young Boo Others
640 333.1 94.4 40 175.5
Keep Green & Heating the world P.7
1. Company information
5. Company history
Nov. 05 :Technology Evaluation and Efficiency research with Plastic fuel for Boiler and Burner by KTL
Oct. 05 : 2nd factory set up- Daejeon City
Jul. 05 : Completion of Air emission test by US Testing Company
(US EPA certified test Inc)
Mar. 05 : Apply plastic fueled burner patent- Registration Number 0476997
Sep. 04 : Apply oil burner patent- Registration Number 0073733
Dec. 03 : Implement of field test unit-horizontal type Pennsylvania State University
Sep. 03 : Plastic fueled Combustion burner Patent approved
Approved registration number 0413188
Feb. 03 : 1st factory established Pocheon-gun, Gyeonggi-do, Korea
Feb. 03 : Horizontal type boiler developed 790,000 Btu(200K kcal)
Sep. 02 : Prototype boiler field test(Vertical type ) 14 months high tunnel (100K kcal)
May. 02 : Vertical type boiler developed 390,000 Btu (100K kcal)
Mar. 02 : Apply plastic fueled Burner Patent - Registration Number 0015546
Feb. 01 : Apply plastic fueled burner Patent - Registration Number 0002077
Apr. 00 : GR Technologies Inc established CEO William Bang
(Paid in capital :$3.2 Million/ 3.2 billion won)
Keep Green & Heating the world P.8
1. Company information
6. Prospect of company
2005 current FY2006 FY2007 FY2008 FY2009
Apr. 00 :GRT established USA corp.will forming Japan corp. established Australia corp. established Korea corp. will be
Canada corp. will forming China corp. established South America
on the list of
Obtain 2 patents
corp. established IPO in Kosdaq
Apply 2 patents IPO in Nasdaq EU corp. established
Russia corp. established
registration Germany. Corp established
R&D Poland corp. established
Development of a Boiler UK corp. established
100K kcal completed Boiler 70K kcal,500K Kcal, Holland corp. established
Will develop a burner for
1M Kcal
turbine ( 2 million kcal)
Will develop a burner for
Development of a Boiler incineration (2 million Kcal)
200K kcal completed Will develop a burner for
turbine (3 million kcal)
Will develop a burner for
Development of a Boiler Will develop a burner for incineration (3 million Kcal)
300K kcal completed turbine (5 million kcal)
7. Revenue Objection
Category 2005 2006 2007 2008 2009
Boiler sales 0.12million 4.65 million 16.95million 42.5 million 66.45 million
Plastic fuel sales 0.33million 1.29 million 7.18million 23.34million 53.0 million
Total sales 1.53 million 5.94million 24.13million 65.84million 119.45 million
1. Small size agricultural and industrial boiler development-> mid & large size agricultural and industrial boiler
development -> the burner for generation turbine development -> boiler for incineration development.
2. Establish global network through setting up international corps. in principal plastic production countries and 11 main
countries of plastic consumption
3. Stable sale increase by producing waste plastic fuel without rising plastic fuel prime cost
4. By 2009, the company will be a large scale blue chip company with 119.45 million revenue & net profit 26.94mbillion
Keep Green & Heating the world P.9
2. Business contents
1. Business Introduction-1
1). Plastic Fueled Boiler
Definition- Plastic Fueled Boiler known as (PFB) is a boiler with an energy/environmental waste plastic fuel
environmentally safe technology and has the same functions and effects of advanced boilers fueled within oil
and gas industries.
The plastic Fueled Boiler ( PFB) is a boiler that uses a fixed quantity of solid plastic in specific size pellets ,that
are then fed into the combustor. The plastic fuel is burned into an energy effective process within the boiler,
utilizing a newly Patent-safe Environmental-Optimal-Designed process of liquidication, gasification, ignition and
combustion.
The bleeding edge details of plastic fueled boiler is seen when the gas emitted from the boiler is much clear
than the most advanced oil fueled boilers like diesel and kerosene technologies. Another important point is that
the air emission has remarkably lower pollutants on all levels making globally-safe.
The understanding and the development of this Plastic Fueled Boiler is engineered-effectively by GRT. We GRT,
are bringing a new Meme (paradigm) of Environmental/Energy-safe forward thinking technologies to transform
hazardous and agricultural waste plastics in plastic industries world wide (Korea: 3 million ~4 million tons/year)
which could be used as a new recyclable energy. And this is also acknowledged as epoch making technology
that has solved both environmental and energy problems with a green technology to lay a cornerstone to be a
strong energy country in the future.
The total quantity of world plastic production is approximately 210 million tons and is an increasing trend every
year so that quantity of waste plastics generated are also increasing but the cost of waste treatment
(incineration and landfill) is burdened and good quality of waste plastics stocked everywhere. That’s why this
product has a great advantage to penetrate to the markets like USA, Europe, Japan etc. where chemical fields
are advanced. The waste plastics increased more high volume every year, became very high resources for
plastic fuel boiler market.
Note) The annual total usage of plastic in the world is 210 million tons., 7% of growth by year on the basis of 126 million tons in 1996 (estimated)
Keep Green & Heating the world P.10
2. Business contents
1. Business Introduction-2
2). Plastic fuel
Definition -
A. Plastic fuel : plastics mixed with different components or one kind of plastics solidified and cut in a certain size
and used as boiler fuel. This solidified plastic fuel gives the same effects as oil and gas
B. Type of plastics:
1.PETE, 2.HDPE (high density polyethylene), 3.PVC, 4.LDPE (low density polyethylene),
5. PP(polypropylene), 6.PS(polystyrene: Styrofoam), 7. others
** PVC line plastics are not used for boiler fuel because it is inadaptable
3). fuel category :
A. Solid fuel: soft plastics like LDPE, PS are pressed, pelletize in a certain size and directly used as fuel
B. Granulate fuel: hard plastics like PETE, HDPE, PP are granulate in a certain size by crusher and directly
used as boiler fuel
Annually generated waste plastic quotation is approximately over 170 million tons worldwide and is on the
increase. Although each country makes constant efforts to research and to dispose them, the fundamental
solution has not been found yet.
Note) The total 170 million tons of worldwide plastic usage is estimated volume equivalent to 80% of
total production of plastic products
Keep Green & Heating the world P.11
2. Business contents
2. Business Outline
1) Plastic fuel combustion boiler
A. Product manufacturing - Korea: Finish products & parts manufacturing
Overseas: Finish products and parts export
B. Domestic sale – Agricultural Sector : 100K,200K,300K,500K kcal
Industry : 200K,300K,500K,800K,1 M,1.5 M kcal
C. Overseas export – All kind of boilers produced and sales, finish product for household
and parts export
2) plastic fuel
A. Production : A part of waste plastic fuel produced by GRT directly
Contractual and OEM production by Independent supplier
B. Sales target : Farms & waste plastic fuel combustor users
C. Transportation fee : within 10% range of plastic fuel price
Keep Green & Heating the world P.12
2. Business contents
3. The characteristics of PF boiler business and obstacles of market penetration
1) Characteristics
◈ Due to two kinds source of revenue which are machine (burner) and energy (fuel), it is possible to make high profits
☞ Combustor and fuel production related know-how patent registration obtained
◈ Capital and technology intensive industry
☞ PF Boiler – Boiler and fuel sales are inseparable therefore it is needed to build both 2 channels network separately
☞ Fuel production-large scale production facility needed and necessity to evoke national consensus of fuel supply
☞ Large scale fund for facility and research cost needed in order to produce burner and fuel production
☞ Inducement of waste plastic disposal facility installation in developed and developing countries
◈ Disposal some parts of waste plastic generated from each country every year
☞ Waste plastic generated from developed and developing countries switches industrial energy resources and prevent it from the
2nd environmental pollution
◈ Possibility to grow to be an environment related key industry
☞ Pollutant disposal and thermal energy will make high profits and become a national management policy business
2) Obstacles of market penetration
◈ Machine and energy both businesses related – establish complicated network associated with several providers
◈ Machine and fuel production related know-how patent registration obtained - As the company itself has a source of
technology secured, other competitors will have difficulties to follow GRT for a while
◈ Capital and technology intensive industry- Required large scale capital in order to produce machine and fuel production
◈ Closed fuel supply network and avoidance – Awareness of using wastes as a Renewable fuel and negative perception using
waste plastic for the Alternative Energy
◈ Necessity of fuel related policy and regulation – insufficiency of solid plastic fuel standard
Keep Green & Heating the world P.13
2. Business contents
4. Profit model
Technology royalty, 10% revenue of total plastic fuel revenue predicted.
fuel & machine 5% Revenue will be increased in proportion to quantity of boiler units sold.
transport business
Main parts produced by GRT itself will be sold in global market such as USA,
PF boiler developed by GRT will get royalty revenue from worldwide countries.
Boiler parts export 15% The revenue of royalty of PF boiler developed by GRT will be 2~3% of
revenue
Boiler fuel is a main revenue along with boiler machine and also
closely related to the quantity of boiler sold.
Fuel sale 32% Diversity of plastic fuel size depend on boiler capacity.
Required nation wide network for fuel supply convenience.
Main revenue stream
Patented & Secured technology, Direct feeding system, Unique & Global
technology, Monopoly market.
Boiler sale 49% Diversity of Boiler capacity from Householder and Agricultural and Industry
use(50K Kcal – 2M Kcal)
Adapting Co-generate Turbine Burner : 3 MW, 5 MW
Keep Green & Heating the world P.14
2. Business contents
5. Turnover Structure
(unit: million/USD$)
600
Category 2005 2006 2007 2008 2009
A a gricul ture
500 Boil e r
Agriculture
1.2 27.0 99.1 225.0 396.5
400 Ge ne ra tor
burne r
Industry 19.5 70.4 200.0 268.0
300
Indus try Boil e r
200 Fuel 0.33 12.9 71.8 233.4 530.0
100 P l a s tic fue l
Total 1.53 59.4 241.3 658.4 1,194.5
0
` 05 ` 06 ` 07 ` 08 ` 09
Globalization strategy in order to maximize turnover
Plastic fuel production occurs consumption & production in principal waste plastic generating countries
Objective of the burner production : within 7% of total annual quantity of waste plastic
Objective of turnover is $1,194.5 million by Dec. 2009
Keep Green & Heating the world P.15
2. Business contents
6. Industry characteristics (Preceding Boiler industry) - 1
A. Current status of companies
Due to factors like development of national industry and improvement of income standard,
the pattern of energy consumption is changing swiftly from briquette to oil, oil to gas, gas to
electricity. The new demand of boiler is decreasing but the demand of boiler replacement is
predicted to be on increase slightly.
Existing boiler market is deeply related to construction market, it will be growing slightly
due to mainly housing supply and construction policy by government in the future.
B. Characteristics of the industry
The characteristics of Boiler industry is changing little by little according to transition of
heating system. In 60s and 70’s, it shaped a market with briquette boiler and transformed
into oil boiler market in early 80’s.
Recently it transforms into oil, gas, electricity, this means that the more the living standard
of consumer is improved, the more heating system becomes luxurious gradually.
It changes also the taste of consumer’s heating pattern and is influenced by crude oil price
increase.
C. Growth of industry
(1).Oil boiler – Declines to grow due to high oil price
(2). Gas boiler- Steady growth little by little
(3). Electric boiler- Closely related to electric production, is depending on electric supply
policy by the Korea Power Supply Corporation. Boiler market got out of IMF economic
recession and grows step by step since year 2003
Keep Green & Heating the world P.16
2. Business contents
6. Industry characteristics (Preceding Boiler industry) - 2
D. Characteristics of business fluctuation
Characteristics of economy fluctuation of existing Boiler industry is similar to those of
housing construction. The seasonal factors affect sensitively economy fluctuation.
Economy fluctuation with PF boiler would be affected by energy resources (oil, gas).
During the period like Aug. 2005, the market will be boomed by high demand of
consumers due to high oil price.
Seasonal factors will not affect to existing Boiler market.
Throughout the year, from September to the end of December, we foresee that the increase
of demand will peak by repairing and replace boilers before winter season comings
E. Elements of competition
(1) Characteristics of competition with existing boilers : Integral competition
(2) GRT PF boiler competition characteristics: monopoly in the market (will possibly
maintain for 10~15 years)
(3) Hardness of market penetration: oil boiler market is monopolized by 2 higher ranked
companies so that penetration of new company is extremely difficult and in terms of
gas boiler market is highly competitive between some companies providing quality
of products and A/S capability
(4) Factors of competition: quality of products, A/S, price, brand image etc.
Keep Green & Heating the world P.17
2. Business contents
7. Market analysis
Characteristic of the market
(1) Transition of boiler industry is together with energy consumption,
Korean domestic heating fuel transition pattern is also changing as follows coal→ oil → gas
→electricity
(2) The demand of oil boiler will be continuously increase, more in rural than urban and other
regions where no urban gas pipe line provided.
(3) Gas boiler industry is a main business field, centered in cities, it is used frequently as cheap
and clean energy resources and will lead the market for a while
(4) The market of electric boiler industry is depressed once by the restraint policy of the Korea
Power Supply Corporation but is growing recently due to sky-rocked oil prices.
Keep Green & Heating the world P.18
2. Business contents
8. Market competitiveness Analysis
Category Strengths and Weaknesses PFB competitiveness
evaluation
Strength: Easy to access supply and purchasing Low fuel price
Oil fueled Weakness : High priced fuel Closely related to oil production
Existing boiler
competitors Gas fueled Strength: Clean air emission VS oil fuel Low fuel price
Weakness: Difficult to store fuel, High price
boiler
Large scale capacity machine development project will take more than Differentiation in terms of
5-10 years environment preservation
Hydrogen fuel Weakness: Stability not secured, difficult to make small size machine,
Potential high cost
competitors Short of quantity of fuel production Low fuel price
Biomass High cost of Facility installation
Excessive air emission, quantity generated is limited Good fuel supply & gas
Waste oil emission
Strength: Non pollutant heat source, permanent use Impossible to complement,
Geothermal Weakness: over a certain degree of heat source needed, impossible high function
in use
Strength: Non pollutant heat source, permanent use Impossible to complement
Solar heat Weakness: Low economical efficiency due to excessive facility cost
mid function
Alternative
fuel Strength: Non pollutant heat source, permanent use Impossible to complement
Wind power Weakness: Limited use for specific regions and specific purposes Low function
Strength: Non pollutant heat source, permanent use Impossible to complement
Hydraulic power Weakness: Limited use for specific regions and specific purposes Low function
Strength: Environment friendly, clean air emission, low fuel price Monopoly in the market.
GRT PFB Plastic fuel Weakness: Fuel supply network not established, lack of awareness of Environment highly preserved
consumers
Keep Green & Heating the world P.19
2. Business contents
9. Current Status of Boiler Market (Korea)
Classification Turnover Classification Turnover
K- Boiler 173.1 KW- Boiler 16.9
G- Boiler 246.4 DG- Boiler 13.7
D- Boiler 22.0 DR- Boiler & Other 23.2
B- Boiler 41.0 Other boiler 119.9
companies
T- Boiler 19.7
Total $675,9 million
note) All companies mentioned above are registered in the Financial
Supervisory Service Board
No distinction between oil and gas boilers
Keep Green & Heating the world P.20
3. Technology Introduction
1. PF Boiler Technology Outline - 1
1-1. Burner Technology Development Background
The advance of petrochemical industry and increase of income levels has lead to the rise of
plastic consumption and waste. This causes primarily land and air pollution and secondarily
accumulation of heavy metals in the body leading to diseases, plant and animal deformity, and
visible and invisible damages. We developed the plastic waste fueled combustor based on idea
of making non degradable plastic into resource and energy and solve problems like the above at
the same time gaining economical secondary effects
1-2. Plastic Fueled Combustion Burner Development Achievements
Development Manpower Cost of
Contents of Development Explanation
time span committed development
100K kcal combustor
2000~2001 6 800million 2 patents
standing energy transformer
gained
200K kcal combustor 2patents
Horizontal energy transformer pending
2001~2003 9 800million
Controller, field test, gas
emission test
Combustor efficiency upgrade,
2003~2005 10 1billion
sample production 8EA
5years 25 2.6billion
Keep Green & Heating the world P.21
3. Technology Introduction
1. PF Boiler Technology Outline - 2
1-3. Related Industry and Application Field
◈ Related Industry
Energy Industry- It is a recyclable energy industry that uses plastic waste fuel which is
cleaner than natural gas. It can be a main alternative energy resource.
Environment Industry- Reduction of waste landfill and prevention of landfill derived filthy
water leads to reduction of land and water pollution. Controls gas emission from waste
burning and prevents air pollution.
Equipment Industry- If greater capacity PF Boiler is developed waste incinerating,
cogeneration, district heating etc mass plant industry application will be possible
Synthetic Machinery Industry - Composed of molding products like steel products pipe etc
and electric motor & electric controller’s products, body etc. Composed of synthetic machinery.
◈ Application Field
General Industry - Building boiler, distinguished into middle size for factory and small size for
home Agricultural.
Fish Farm Industry- Develop into agricultural facility (greenhouse), horticulture, fish farming.
Power Plant - Steam power generation, cogeneration, waste incinerator.
Global Industry- Launch into all countries with high plastic waste rate.
High Economic value industry - Machinery, fuel, delivery, royalty, government support
(environmental imposition grant) industry.
Keep Green & Heating the world P.22
3. Technology Introduction
2. Tech. Level and Trend
A. Technology Level
The plastic recycling technology is popular currently in Japan, Korea, United States etc
Oilization, RPF, incinerating, gasfication is exists but GRT developed boiler technology is 3rd
generation technology and is being recognized as revolutionary from the plastic recycle
technology. It is a fountainhead technology development that directly feeds
plastic fuel for combustion and is expected to have a big impact on the market.
B. Technology Trend
The plastic recycling technology trend’s representative technologies are RDF, RPF,
oilization, gasfication and incinerating technology. These ignore economic efficiency and
market efficiency for the resource recycling only so their market utility is weak and
undeveloped.
They are showing progress in recycling specific materials like the Japan-developed recyclable
PET with high economic value fiber production technology but it does not reduce the large
amount of plastic waste. GRT developed technology has opened a way to dispose a large
amount of plastic waste through the technology of directly feeding various plastics to complete
combustion. It is also putting effort in R&D to develop mass amount development, spread of
low cost production.
C. GRT Current status
GRT developed PFB technology is the fountainhead technology of solid plastic fuel
combustion and is currently a monopoly in the market and is expected to maintain the
monopoly oligopoly state for the next decade.
Keep Green & Heating the world P.23
3. Technology Introduction
3. Technology Level and Trend (explanation of terms)
3-1 RDF(Refuse Derided Fuel) method
RDF produces energy from the waste by the following process – assorting flammable components, cleaning,
crushing, drying, pressing, and modeling. The main application field is in Japan’s case used in limited fields like the
power plant, incinerator etc and due to the low caloric value does not use only RDF fuel but mixes petroleum and
coal as a complementary fuel. In case of RDF fuel combustion ash 12% occurs and 88% creates calories through
volatility. In case of Korea, RDF fuel made of city trash is used as main fuel and LPG as complementary fuel in the
stocker type incinerator. The test result of RDF fuel characteristic maintained over 600 degree C and 850 degree C
freeboard. (source: stocker type incinerator’s Waste Derived Fuel combustion character/ Environmental Machinery
Technology team. Samsung Engineering Co. Technology Research Center). The test shows that in case of RDF
fuel combustion over 95% of hazardous material can be eliminated and it is in resource recycle wise an
economically useful method. But the defect is that there is excessive cost of production equipment in early stage.
( d i o x i n c o m p o n e n t s s t a r t s p y r o l y z e a t 7 0 0 d e g r e e C a n d i s d e s t r o ye d a t 8 5 0 d e g r e e C )
3-2 RPF(Refuse Plastic Fuel:solid fuel containing plastic )
RPF has relatively higher caloric value compared to RDF.
RPF fuel standard is as follows; containing over 60% of waste plastic, less than 50mm in diameter, less
than 100mm in length, caloric value more than 6000kcal/kg. (The Ministry of Environment Notification 91-
73). This company’s technology applies to this regulation.
3-3 Oiligzation technology
In 1973 the Northern island industry in Japan began their basic research to develop plastic waste oilization. Even
though technical problems have been solved it is not being industrialized for a couple of reasons (1) It is difficult to
recover the investment from the revenue generated by operation because of the excessive cost of production
equipment in an early stage, (2) There must be a precondition of conducting complete sorting (3) There are still
some problems remaining in sorting and elimination of PVC, PET kinds thermosetting plastic. (4)Elimination of
impurities requires complex process that needs to be simplified. Therefore, it would be expected that it would take
much time to put this technology into practice use because of the problems mentioned.
Keep Green & Heating the world P.24
3. Technology Introduction
4. Technology Influence Effect - 1
A. Application Range and Utility
Agricultural – Equipment crop cultivation: Tomato, pepper, orange, tropical crops green house etc
Horticulture: Orchid or tropical and subtropical plants
Equipment crop: Floriculture
Fishery – Fish farming: Flatfish, porgy etc warm current fish
Fishing ground: Indoors fishing ground
Industrial – Factory: Factory heating, main and part ingredients manufacturing heat provide
Building: Hot water, heating steam provide
Spa: Hot water provide
Accommodations: hotel, condominium, company etc training institute heating system and warm
water.
Military building heating system: Fuel preservation convenient
Power plant – Power plant turbine, cogeneration plant, district heating system
Waste incinerator – Direct waste incinerator, indirect waste incinerator (stocker method)
Domestic use – Ranch, farms, not densely populated houses – within USA
B. Waste Plastic Recycle
Currently waste plastic (PVC included) is being separated and disposed but recycle
purpose collection is limited and the government and private company’s hesitance to collect
Waste plastic which leads to prolonged negligence is leading to stale smell. GRT PF boiler supply
will stop this awareness that waste become a resource and it will lead government to change
resource of recycle policy. Also it is expected a standard for plastic solid fuel will be created.
Keep Green & Heating the world P.25
3. Technology Introduction
4. Tech spread Effect - 2
C. Expected Effect (profit, employment creation, solve environmental problem, replace imported energy,
alternative)
(1) Environmental effect - Waste reduction will lead to reduction of landfill. Soil, air etc secondary
environmental pollution prevented.
Recycled trash (plastic) collection rate will grow higher
(2)Replace Imported energy - Cost reduction – Reduce Crude oil import and reduce foreign
currency.
Category Boiler Boiler Boiler number of forecast annual
9,000unit 22,000unit 45,000unit boiler usage(200K kcal)
Waste plastic fuel 252 thousand ton 616 thousand ton 1260 thousand ton Forecast Korean
use market : 20,000 unit
Crude oil exchange 1,847,160barrels 4,515,280barrels 9,235,000barrels 1 ton =7.33barrels
rate
Crude oil import $101,593,800 $248,340,400 $507,925,000 1$=\1,050
substitute effect \1,016billion \2,483billion \5,079billion 1barrels=$55
(3) Economic Effect
Korea – 05 yrs: $1.5million, 06yrs.:$14.9million, 07yrs:$38.6million, 08yrs.:$112.3million, 09yrs:$198.2million
USA -06yrs:$43.6million, 07yrs:$203.9million, 08yrs:$526.4million 09yrs:$946.9million (GRT estimate)
(4) Employment creation Effect
05yrs.:18people, 06yrs.:100people, 07yrs.:360people,08yrs.:800people, 09yrs.:1,000people=(newly created)
☞ 1 person per $0.5 million sales new employment estimate, not counting suppliers employment effect
Keep Green & Heating the world P.26
3. Technology Introduction
5. Technology & Economical Effect Analysis
Item Content Item Item
Agriculture ,
Product GR-PF20 Usage
industrial
Technology life Goal of
More than 10 years New product
cycle development
Type of Current
New technology Exist
technology demand
Tech Similar substitute
Does not exist Similar product None
nolog technology Econo
ical mical
aspe Patent 2 patents approved aspect Quality Excellent
ct
lacking(manpower,
Process capacity Cost High
facility, finance)
R&D time 5years Cost price Medium
Competitor Oil, gas burner
Sales direction Direct sales
Order production,
Sales method
Demand sales
Keep Green & Heating the world P.27
3. Technology Introduction
6. Economical Efficiency Analysis
of Economical Effect
Category Plastic fuel Bunker C oil Diesel Explanation
kg/ℓ : cost $0.35 $0.43 $0.65
cal /1kg./1ℓ 11,000 9,900 8,600 62% reduction with
non tax oil
Annual cost $11,289.60 $19,504.80 $29,920.80
Note) 8hr/dy, 210dy(7mo) apply, per hour : plastic fuel19.2kg, bunker C oil 27ℓ, dissel25ℓ use
200K kcal standard, heat effect GR Boiler 95%apply, crude oil 85%, bunker C oil 75%
.Plastic: 200T Kcal; 8hr/dy, 19.2kg/hr, 210dy, $0.35/1kg =19.2kg*1hr*8hr*210dy*$0.35 = $11,289.6
.Bunker C oil : 200K Kcal; 8hr/dy, 27.0L/hr, 210dy, $0.43/hr =27.0L*1hr*8hr*210dy*$0.43 = $19,504.8
.Gasoline : 200K Kcal; 8hr/dy, 27.4ℓ/hr , 210dy, $0.65/hr =27.4ℓ *1hr*8hr*210dy*$0.65 = $29,920.8
category Oct Nov Dec Jan Feb Mar Apr May Average
Operating hours 4 10 12 12 12 7 4 3 8hr
oil type and plastic type caloric heat comparison
LIfe commodities,
Plastic Expendable
Category Oil type(ℓ) commodities(kg)
synthetic(kg) industrial RDF(kg) RPF(kg)
type(kg) waste(kg)
House Contains
Diesel, PE,PP Disposal Burnable commodities,
Type containers
PVC type 60%
kerosene ,PETE waste industrial waste plastic
Caloric heat 11,000~ 9,000~ 4,000~ 4,000~ 4,000~
8,600 Over 6,000
(cal/kg/ℓ) 11,500 10,500 4,500 4,500 5,000
Note) diesel1ℓ=0.833Kg: 1Kg=1.2ℓ, diesel1kg heat value10,750cal
Keep Green & Heating the world P.28
3. Technology Introduction
7. PF boiler competitive product difference
Category GR PF boiler Oil boiler Gas boiler Explanation
Enforced air input and mixed Ventilation Ventilation
circulation circulation
Screw method- plastic fuel input Spray-oil Spray-gas
Technological
Aspect Solid – liquid – vaporize 3 Liquid fuel Gasfication
stage continuous process direct direct
formula combustion combustion
Functional Solid fuel use Liquid fuel use Gas (natural Partly
gas) patented
aspect
Formational Duct type boiler Spray method Spray method Partly
patented
aspect
2 patent approved
2 patents pending
Basic Patent ＃ 0413188
technology Patent # 0476997
Patent ＃ 0015546
Patent # 0073733
Representative GRT Kyongdong / Kyongdong /
Cricket Cricket
company
Type of market Monopoly status(10~15years) Complete Complete
competition competition
Keep Green & Heating the world P.29
3. Technology Introduction
8. Air Emission Analysis Chart
Category Result Baseline Explanation
Baseline:Korea EPA regulation
Dioxin 0.1 ng-TEQ/S㎥ 5 ng-TEQ/S㎥ Plastic fuel baseline non existent
Sox 6.60ppm 300ppm Baseline : Incineration boiler
Hcl 0.78ppm 50ppm Baseline : Incineration boiler
Footnote) The above baseline has referred to the Korean EPA regulation
Keep Green & Heating the world P.30
4. Product Introduction
1. Burner Component visual
Plastic fuel Controller Shaft
1st combustion chamber
Main motor
2nd combustion chamber
3rd combustion chamber
Fan Oil
① Fuel silo ② Burner ③ Vessel ④ Heat Release
① Fuel silo: 1~5tons of fuel stored and release to burner automatically.
② Burner: Generate heat energy appliance by vaporized combustion
③ Vessel: Transform heat energy to hot water.
④ Heat Release: Transmit heat using hot water and steam into objects
Keep Green & Heating the world P.31
4. Product Introduction
2. Product Outline
◈. Product name : Plastic fueled boiler
Solid plastic fuel is directly combusted in the burner attached vessel for industrial boiler
◈. Type of product : Small 790,000 Btu(200K Kcal) vertical or horizontal
Small 395,000 Btu(100K kcal) vertical or horizontal
◈. Field test : Korea - Green house and under the same circumstance completed
USA - PSU in process
◈. Air emission test : Air emission analysis from the stack
Korea - KTL, 2001.10(Korea Technology Lab)
USA - Test Inc, 2005.06(US EPA authorized corp)
◈. Commercial product : Korea - estimate market launching Dec 2005
USA – estimate market launching Early 2006
Keep Green & Heating the world P.32
4. Product Introduction
3. Product Development Status
Burner . Agricultural burner 100,000Kcal: Development complete -> Mass production preparation in process
Development . Agricultural burner 200,000Kcal: Development complete ->Mass production preparation in process
Fuel . Korea – plastic fuel development for agricultural burner complete ->2mm~10mm pellet/granulate
Development . USA – fuel development for agricultural burner complete ->2mm~10mm
Boiler . Vertical type boiler: development complete (field test complete) water capacity: 2 tons
Development . Horizontal type boiler: development complete (USA PSU installment test in process) water capacity:1 ton
Air . Korea – Complete in Oct 2001: gas emission data/ better than baseline- first version
Emission Test . USA – Complete in June 2005: gas emission data/ good-upgrade version
Development . Korea – 300,000 kcal, 500,000kcal boiler scale up in process
process details
. USA – Plastic fuel production and delivery system preparation in process
Keep Green & Heating the world P.33
4. Product Introduction
4. Product Technological Characteristic
1) Solid plastic fuel use for automatic feeding and combustion
2) Composed burner and vessel designed using solid plastic for heat collection system
3) Automatic fuel storage and feeding from the silo
4) Transform solid fuel into thermoplastic gas and vaporizing through separate chamber room.
-Separate and prevent air emission and pollution.
5) Burner melts feed fuel.
6) From the liquid to vaporize it separately burned into different divided chamber room.
Through the complete plastic combustion process it is finally combusted to secondary
air pollution of Dioxin, Hydride, Sulfur Oxide etc.
7) Ability to combust mixed plastics (PE, PP, PETE) simultaneously.
8) Complete combustion by maintaining over 1000℃ inner chamber room temperature.
Keep Green & Heating the world P.34
4. Product Introduction
5. Product Advantage
1) Solid plastic fuel(3-10 mm) combustion function burner.
2) Maintain constant combustion heat volume using fixed feeding mechanism.
3) Remarkable economic efficiency compared to oil and other type of fuels.
4) Ability to use dual fuels with plastic or single fuel such as diesel or kerosene.
☞ Using oil fuel could guarantee steady operation and eliminate problems (breakdown
and order delay) caused by using plastic fuel.
5) Complete combustion with high temperature to eliminate air pollution.
6) Environment friendly and energy recyclable product.
7) Over 50% reduction of standard non-tax fuel when applied in agricultural use like special
floriculture, greenhouse.
Keep Green & Heating the world P.35
4. Product Introduction
6. Product Application Field
(1) Agriculture
Greenhouse cultivation farm (tomato, pepper, orange etc tropical crops, greenhouse etc)
floriculture, fish farm
(2) Industrial
Factory, building (spa)
(Hotel, motel condominium etc)
military building heating system
(3) Industry plant facility
Power plant co-generate turbine (over 5million kcal)
Waste incinerator (over 2 millions kcal)
☞Solve two problems by producing electricity and eliminating waste
☞Thermal power plants are economically profitable compared to diesel, LNG fuel.
☞Economically profitable because it eliminates air pollution by substituting soft coal, hard
coal, Bunker C, etc.
☞Replace nuclear power plant (Maintenance fee, nuclear waste recycling fee, Fear of
Hazardous leaks).
Keep Green & Heating the world P.36
4. Product Introduction
7. Advantage to Competitive Company
(unit:U$)
heat 200,000kcal 300,000kcal 490,000kcal
Company efficien
cy product price product price product price
boiler 18,000 boiler 27,000 boiler 45,000
1 year fuel 9,878 1 year fuel 14,817 1 year fuel 24,202
GR-PF boiler 95%
supplementary fuel 1,911 supplementary fuel 2,866 supplementary fuel 4,681
Sum 29,789 sum 44,683 sum 73,883
boiler boiler 4,462 boiler 6,000
A. K Co. (diesel) 86% 1 year fuel 1 year fuel 44,881 1 year fuel 73,305
Sum sum 49,343 sum 79,305
boiler 2,500 boiler boiler
B. S Co. (diesel) 86% 1 year fuel 29,920 1 year fuel 1 year fuel
Sum 32,420 sum sum
1 year use 2,631 4,660 5,422
GR boiler advantage
2 year use 22,673 34,724 54,525
C. M Co.(diesel) 86% boiler 9,000 boiler 12,000 boiler 15,000
note)
1. plastic fuel: 200K kcal; 7hr/dy, 19.2kg/hr,210 days(7months), $0.35/kg =19.2kg*7 hours*210days*$0.35 =$9,878.4
supplementary fuel (excluding tax) : 200Kkcal;1hr/dy, 14L/hr, 210days(7months), $0.65/L =14kg*1 hr*210 days*$0.65 =$1,911
2. diesel boiler(excluding tax) : 200Kkcal; 8hr/dy, 27.4L/hr, 210days(7months), $0.65/L =24.7L*1hr*210days*0.65=$29,920.8
3. calories : plastic :1kg 11,000kcal / gasoline 1L 8,600kcal / Bunker C oil 1L 9,750kcal ( Bunker c oil calories is plastic calories' 88.6%)
Keep Green & Heating the world P.37
5. Fuel Introduction
1. Fuel process flow chart Feeding
Plastic
fuel
1st Hydro
Extraction P
Waste Plastic Dryer Conveyer
L
A
Transport
Crusher Conveyer Twin compressor S
T
I
Transport Regular
Conveyer Stirred washing compressor C
Waste
B
Vantage
Conveyer Input [1] Pelletized U
1st Screening Large water tank Solid Fuel R
N
[2] Granulated E
2st Screening Solid Fuel R
Keep Green & Heating the world P.38
5. Fuel Introduction
2. Plastic fuel introduction
Plastic: waste plastic like PE, PP, PET etc and also mixed plastic production available
1) Standardize fuel : Production of standard size solid fuel (2mm ~ 5cm) for automatic feeding
for heating value control
☞ Easy store and transport
2) Eliminate Pollution : Continuing research to eliminate pollution from the different plastic
☞ Emitted gas: Dioxin, HCl, SOx, Nox etc
3) Improve combustion efficiency : Control the size of waste plastic to produce high grade plastic
pellet with low cost
3. Plastic fuel combustion technical principle
1). Complete combustion by using Impellor screw method and fixed feeding amount of fuel per heat value.
2). Eliminate hazardous gas by maintaining 1000 ℃ within inner combustion chamber.
3). Depending on fuel size (3mm – 10mm) oriented feeder
4). Combustion chamber has 3 separate sections. 1st melting fusion, 2nd gasification, 3rd combustion
Keep Green & Heating the world P.39
5. Fuel Introduction
4. Plastic fuel visual (sample)
Keep Green & Heating the world P.40
5. Fuel Introduction
5. Waste Plastic and Environmental and economical problems
A. Problems with Landfill
1) Hard degradable influence soil pollution
2) Disturb the ecosystem through 2nd pollution
3) Need huge land acres leading to financial loses
B. Problems with Burning
1) Hazardous air pollution will harm humans and fauna and flora
2) Opposition from nearby residents and a lot of capital invested
3) Because of 2) it is difficult to find suitable location for facility and when built in a
remote place without electricity resources will be wasted.
C. Open burning
1) Caused air pollution
2) Hard to complete combustion
3) Economic loses and energy loses
D. Landfill and burning problem solution
Waste plastic has a very high caloric value so it causes pollution with landfill and
burning but GRT PF Combustion technology uses them turn into an
effective energy source. It is the only alternative to solve soil, water, air pollution
and economic losses from the waste plastic.
Keep Green & Heating the world P.41
5. Fuel Introduction
6. Fuel Supply and Demand Strategy
1) Introduction - 2005~2006
(1) Supply and demand OEM supply through exist waste plastic management company
(2) Organize fuel division for create nationwide fuel network from the contracted fuel
supplying companies with efficient effect
2) Growing period-2006~2008
(1) Leasing production facility managed by government invested company
(2) 10 % of total fuel usage will be produced by GRT to establish fuel supply and demand
stabilization
(3) Large size burner development will increase profit of large particle fuel (2-3cm)
(4) Effort to make solid plastic fuel standard regulations and policy
3) Growth period-2008~2009
(1) 5% of total fuel usage will be used in factory itself for increased profits and
stabilization: operate 2 production factories
(2) Based on stabilized fuel supply and demand increase sales and improve plastic
collection rate and strengthen government and public awareness
Keep Green & Heating the world P.42
6. Business strategy
1. Company management and international corporation establishment
1. Korea co. (GRT): R&D and parts 2. USA co. (GRT): Built the global network
export of parts made in Korea USA, Canada, Australia, Japan, Russia,
and China 28 EU countries, south America etc.
R&D and technical development etc.
close and cooperative relationship Canada
about key management issues corp.
Korea GRT co.
Japan
corp. USA corp. (GRTA)
Generalization of
Global market &
Korea co. Parts Sales built the global
China corp.
Main parts network
established
Production
& export Corporations
established in
28 EU countries South
Russia, Eastern Australia America
Europe Corp.
corp.
Keep Green & Heating the world P.43
6. Business strategy
2. Forecast of market size
2-1. World plastic production increase trend (estimated)
(unit: Milo.tons)
300
216
202
200 189
177
165
154
144
135
126
100
0
1996 1997 1998 1999 2000 2001 2002 2003 2004
Category 1996 1997 1998 1999 2000 2001 2002 2003 2004
Production 126 135 144 154 165 177 189 202 216
quantity
note) Source 1996 : Quoted resources recycling white paper – 1,26 million ton produced by 1996/
there might be a change of world plastic production quantity data because it
is applied average growth rate 7% compared to previous years from 1997~2004.
Keep Green & Heating the world P.44
6. Business strategy
2. Forecast of market size
2-2. Actual status of produced waste plastic and treatment in Korea
(unit : 10,000 tons)
400
ty
Q u a n ti g e n e ra te d
350
100%
300 29%
i
R e c yc ln g
250
200 La n d fl
il 30%
150
I c i e ra t o n
n n i 18%
100
50 Etc 23%
0
2000 2001 2002
2000 2001 2002
Quantity of generation 321 366 380
Recycling 89 103 104
Landfill 96 102 110
Incineration 64 73 76
. Source : Data from National Statistical Office & Korea resource recycling Corp.
Keep Green & Heating the world P.45
6. Business strategy
2. Forecast of Market size
2-3. Actual Status of world produced waste plastic (estimation)
(unit : 10,000 tons)
8000
Market classification 2000 2001 2002
K o rea
Total
7000
Whole market Quantity of 14,766 16,836 17,480
generation
Quantity of
6000 1)North 6,420 7,320 7,600
Japan America
generation
gravity 43% 43% 43%
Quantity of
5000 generation 4,815 5,490 5,700
2)Europe
gravity 32% 32% 32%
N o rth Quantity of
4000 1,605 1,830 1,900
A m eri ca 3)Japan generation
gravity 11% 11% 11%
3000 Quantity of
1,284 1,464 1,520
E uro pe 4)Asia generation
gravity 8.7% 8.7% 8.7%
2000 Quantity of
5)Other generation 321 366 380
countries gravity 2.2% 2.2% 2.2%
1000 a
A si (o ther Quantity of
es)
co untri generation 321 366 380
6)Korea
0 gravity 2.2% 2.2% 2.2%
1999 2000 2001 2002
note 1) 1) North America: 20x Korea 2) Europe: 15x Korea 3) Japan: 5x Korea 4) Asia(excluding Japan) : 5x Korea 5 )others
:1xKorea 6) Korea: agricultural promotion office, national statistical office source
note 2) source : Korea resource recycling organization research center
As there’s no data for survey about quantity of waste plastic generated, it is an estimated data of total quantity generated
together with that of quantity recycled of household waste (flammable plastics + recycling plastics),+ industrial
waste(synthetic resins)+construction waste(flammable synthetic resins) quoted from statistical yearly book titled 「the status
of national waste generation and disposal」published by ministry of environment
Keep Green & Heating the world P.46
6. Business strategy
3. Forecast of Korea boiler industry demand
(unit: Million/U$)
Category Summary Amount
1.Agricultural Boiler scope Boiler 166,992 units, replacement of a 1/4 boiler unit 333.7
costs U$5,000
2. Agricultural Boiler Units Green house for agriculture, More than 15% annual 166,992 units
growth by 2004
3. Agricultural Fuel Market Non tax oil, Diesel, Kerosene, Bunker C oil 1,997.1
scope
4. Industrial Boiler scope Factories , Buildings etc. 342.2
5.Thermal Power Plant Market Opportunity 0
Total 2,673.0
Note) 1. Agricultural boiler replacement market scope : 166,992 *1/4=41,750 units * price of a boiler unit : apply an
average $500 million= (1)$208.7 million
agricultural boiler new market scope : 166,992*15% growth=25,000 units* boiler unit price : apply an
average U$5,000=(2) $125 million =(1)+(2)=$333.7 million
** a life span cycle of an agricultural boiler unit : apply an average 4 years
2. Data from Ministry of agriculture and national statistical office source of 2005: statistics of 2004,
agricultural boiler units: 166,992 units
3. 200K kcal : 8 hours per day, 27.4L per hour, 210 days, 0.65 per 1L=27.4L*8*210days*$0.65=$29,920.8*
66,750units= $1,997.1 million
4. The whole boiler market scope in Korea : approximately $675.9 million estimated.
Keep Green & Heating the world P.47
6. Business strategy
4. Forecast of world burner industry demand (estimated)
(Unit : Million/U$)
Category Korea USA Japan China Europe Other Total
countries
Agricultural Boiler 333.7 6,674.0 1,668.5 333.7 5,005.5 1,668.5 15,683.9
scope
Agricultural Boiler 166,992EA Impossible Impossible Impossible Impossible Impossible
units to estimate to estimate to estimate to estimate to estimate
Agricultural Fuel 1,997.1 39,942.0 9,985.5 1,997.1 29,956.5 9,985.5 93,863.7
Market Scope
Industrial Boiler 342.2 6,844.0 1,711.0 342.2 5,133.0 1,711.0 16,083.4
scope
Thermal Power Market Market Market Market Market Market
Plant Opportunity Opportunity Opportunity Opportunity Opportunity Opportunity
Total 2,673.0 53,460.0 13,365.0 2,673.0 40,095.0 13,365.0 125,631.0
note) Above data was measured (estimated) by Korean standards
1) USA: 20x Korean 2) Japan: 5x Korea 3) China: 1x Korea 4)Europe: 15x Korea 5)Others : 5x Korea
Keep Green & Heating the world P.48
6. Business strategy
5. Market penetration strategy
1. Inducement of support by government and green NGO
To promote to ministries and related associations explaining the fact that transforming waste plastic
resources into alternative energy produces not only environmental preservation effect such as
diminution of landfill, land pollution prevention, air pollution prevention but also economic effects
through reduction of energy resources imported and to establish a cooperative system with them in
order to induce financial support of this business.
2. Cooperation with agriculture related organizations
In terms of purchase of boiler machines, make efficient use of agriculture cooperative association,
which is one of agricultural business sectors, supported by government.
Delivery to boiler machines to the supply administration through the system of priority of purchase
items selection by the supply administration.
Maximize sale via cooperation with floriculture association in suburbs who has not non tax oil, it is
recommended to give positive purchase to farmers.
3. Maximize profits through direct sale system
Due to special characteristics of PF boiler fuel oriented marketing (fuel maintenance & delivery) it is
difficult to sell large number without fuel supply plan therefore direct sale is one of best way to
generate maximize profits without through sales agent or distributor.
4. Attack a niche market through precise target of the market
Horticulture and floriculture farms in the suburbs
greenhouse and high tunnel, fish farm etc,.
5. Active publicity and marketing activities
Active promotion activities through agriculture related newspapers, TV, agriculture specialized magazines
participation in exhibition etc.
Differentiation of A/S-> Defection guarantee 2 years.
All salesman has ability to manage A/S.
Keep Green & Heating the world P.49
6. Business strategy
6. Marketing and promotion plans
◈ Participation in exhibitions
.Participation in agriculture and technology expo – demonstration booth and boiler operation
demonstration in marketing territories
◈ Government Subvention, national policy business
.Appointed new alternative energy, clean energy, recycled energy.
.Provide standards & applications of air emission of waste plastic fuel in order to enact laws
and regulation
◈ Demonstration on spot
.To mobile easily, loading boiler on the vehicle for demonstration is available to demonstrate
boiler operation whenever, wherever to show to customers
◈ Use agriculture related organizations
.Sharing working operation with Agriculture cooperative association, gives easy loan of fund
for farmers to purchase a boiler
◈ Media publicity
.TV commercial
.Publicity on newspapers – Publicity on agriculture related newspapers such as farmer
newspaper, the province newspaper etc
.Special magazines – Publicity in boiler and thermal management magazines
◈ Plastic specialized academy- Case presentation of the research result
◈ Marketing strategy adapted to characteristics of regional industry
◈ Strategy of maintaining existing customers management
.Management policy adapted to clients’ demands, complete A/S, high quality product development
Keep Green & Heating the world P.50
6. Business strategy
7. Sales plans
1) Establishing direct sale system
Subdivision of the market -Secured sales strategy in 6 metro cities :Seoul/
Kyounggi-do/ Incheon, Degu, Pusan, Kwangju, Daejeon
60% of proportion of quantity of waste plastic generated (easy fuel supply, focused
on floriculture farms and green house facilities)
Price strategy- High price strategy
Rate of Market possession – objective: 20% for agriculture sector. 10% for Industrial sector
2) Operation of regional A/S centers and business offices
Disposition of 1 person for 50 boilers units
1 team of 4 persons: installation, maintenance and repair :.3 pers. sales :1 per
the primary stage of sales network established – operation or regional business offices
(Seoul/Kyounggi-do/ Incheon, Daegu, Pusan, Kwangju, Daejeon etc. 5 business offices)
3) Business offices and apply personal intensive system
Realization of rapid sales turnover
4) Regional allocation of sales unit
According to the volume of produced waste plastic will apply to the different number of
boiler sales by region
Keep Green & Heating the world P.51
6. Business strategy
8. R&D plan
1.Development of plastic fueled burner
. 70K kcal : For household = year 2005 (US market)
. 300K kcal : Agriculture, industry = year 2006
. 500K kcal : Agriculture, industry = year 2006
. 3 Mil.kcal : Incineration for waste = year 2007
. 5 Mil. kcal : Turbine for thermal power plant= year 2007
2. Highly effective oil burner development
. 200K kcal : Agriculture, industry = year 2006
. 300K kcal : Agriculture, industry = year 2006
. 500K kcal : Agriculture, industry = year 2007
3.Boiler development : Agriculture, industry, household = year 2005~2007
. Hot water, steam boiler = year 2005~ year 2007
. Hot air Boiler = year 2005~year 2007
. Steam boiler for industry = year 2005~ year 2007
. Household hot water boiler = year 2006
4. Development of mass production system of high quality plastic fuel at low cost
5. Development of co- generating incineration plant = year 2007~2009
Dvp. of burner for agriculture Dvp. of burner for industry Dvp. of burner for generation successful commercialization by stages
Keep Green & Heating the world P.52
6. Business strategy
9. Production & Sales plans -1 (Unit : Million/U$)
Total Category 2005 2006 2007 2008 2009
67
Boiler (20Kcal) 1.2 1,489 units 26.8 2,867 units 51.6 5,560 units 100.0 7,160 units 128.9
units
Boiler (30Kcal) 727 units 19.6 2,500 units 68.4 5,560 units 150.0 7,170 units 193.6
Boiler (50Kcal) 1,100 units 49.5 3,890 units 175.0 7,600 units 342.0
Plastic fuel 840 0.33 37,051 12.9 205,240 71.8 667,128 233.4 1,357,580 530.0
Total 15.3 59.3 241.3 658.4 1,194.5
USA Category 2005 2006 2007 2008 2009
Boiler 200K kcal 1,100 units 19.8 2,200 units 39.6 4,450 units 80.0 5,500 units 99.0
Boiler 300K kcal 560 units 15.1 2,200 units 59.4 4,450 units 120.1 5,500 units 148.5
Boiler 500K kcal 1,000 units 45.0 3,340 units 150.3 6,600 units 297.0
Plastic fuel 27,160 9.5 166,320 58.2 550,970 192.8 1,247,120 436.4
Total 44.4 202.2 543.1 980.9
Korea Category 2005 2006 2007 2008 2009
67uni
Boiler 200K kcal 1.2 389 units 7.0 667 units 12.0 1,110 units 20.0 1,660 units 29.9
ts
Boiler 300K kcal 167 units 4.5 300 units 9.0 1,110 units 29.9 1,670 units 45.1
Boiler 500K kcal 100 units 4.5 550 units 24.7 1,000 units 45.0
Plastic fuel 938 0.33 9,891 3.4 38,920 13.6 116,158 40.6 267,568 93.6
Total 1.53 14.9 39.1 115.2 213.6
• Unit of sale price of boiler : ( 20K Kcal : U$18,000, 30K Kcal : U$27,000, 50K Kcal : U$45,000)
• Unit of sale price of boiler : ( 20K Kcal : 18 Milo.won, 30K Kcal : 27Milo.won , 50K Kcal : 45 Milo. won)
• Fuel price : $0.35/kg $ 350/ton // sales quantity- apply 50% of boiler sale of the year, apply 100% of boiler sale after 1 year
Keep Green & Heating the world P.53
6. Business strategy
9. Production & Sales plans -2 (basis of quantity computation)
USA
1. Boiler sale price: (200K Kcal: U$18,000, 300K Kcal: U$27,000, 500K kcal: U$45,000)
2. On the basis of turnover in 2006 -0.03% of US total quantity of produced waste plastic (76 Mil. tons)
- Sale from the State of Pennsylvania as a primary start,
3. On the basis of turnover in 2007 -0.21% of US total quantity of produced waste plastic(76 Mil. Tons)
4. On the basis of turnover in 2008 -0.72% of US total quantity of produced waste plastic(76 Mil. tons)
5.On the basis of turnover in 2009 –1.64% of US total quantity of produced waste plastic(76 Mil. tons)
6. Fuel price : U$0.35per kg/ U$350 per ton // quantity of sale – apply 50% of boiler sale of the year and 100%
after 1 year
7.Annual usage of fuel per boiler: 20K kcal: 28 tons/year, 30K kcal: 42 tons/year,50K kcal: 70 tons/year
** Objective: 5% of US total quantity of produced waste plastic (76 Mil. tons) = (3.8Mil. tons: 90,400 boiler units of 30K kcal)
Korea
1. Boiler sale price:( 200K Kcal: 18 Milo. won., 300K Kcal : 27 Milo. won 500K kcal : 45 Milo. Won)
2. On the basis of turnover in 2005 -0.02% of Korea total quantity of generated waste plastic (3.8 Mil. tons)
- Construction waste treatment company (Samjin environment co.: 20 units), agriculture technology test institute: 10 units, floriculture
farms: 30 units
3. On the basis of turnover in 2006 -0.26% of Korea total quantity of generated waste plastic (3.8Mil. tons)
4. On the basis of turnover in 2007 –1.02% of Korea total quantity of generated waste plastic (3.8Mil. tons)
5. On the basis of turnover in 2008 -3.05% of Korea total quantity of generated waste plastic (3.8Mil. tons)
6. On the basis of turnover in 2009 –7.04% of Korea total quantity of generated waste plastic (3.8Mil. tons)
7. Fuel price unit: 350 won per kg/ 350,000 won per ton // quantity of sale – apply 50% of boiler sale of the
Year and 100% after 1 year
8. Annual usage of fuel per boiler:20K kcal:28 tons/year, 30K kcal:42 tons/year, 50K kcal:70 tons/year
** Objective: 10% of Korea total quantity of generated waste plastic (3.8 Mil. tons)=(380 thousand. tons: 13,570 boiler units of 20K kcal)
Korean boiler market: 166,992/4 replacement of boiler market 41,750units*$5 Mil=$208.7Million new market: 25,000*$5
Milo.=$125million total :$333.7Million
Keep Green & Heating the world P.54
6. Business strategy
10. Boiler Manufacturing factory establishment and operation
1. Korea manufacturing factory & sales network establishment
a. Burner & boiler manufacturing factory established
.Main parts self production in Korea-factory established.
.Some of parts produced by OEM method – operation of associate company for both production and sale.
.Deliberation to existing boiler companies.
b. Fuel production factory operation
.Delivery and supply by OEM method- choose cooperative companies.
.Establish the factory where waste plastic often generates or access transportation is highly required.
2. US manufacturing factory & sales network establishment
a. Burner & boiler manufacturing factory established.
.Main parts self-production -large scale factory established.
.Some of parts produced by OEM method – operation of associate company for both production and sale.
.Deliberation to existing boiler companies.
b. Supply and demand of fuel secured and manufacturing factory establishment
.At the beginning to secure supply and demand in cooperation with existing states agriculture dept and
private company under the associate contractor.
.Establish the separate factory in each county through waste management center where the waste plastic
enough generated and easy access for transportation.
c. Boiler sales network established
.Establish the system of direct sale & sales through dealers – the way of sales will be operated flexibly
according to US market circumstances.
Keep Green & Heating the world P.55
6. Business strategy
11. Required manpower plans
(unit:person)
Category per function
Category 2005 2006 2007 2008 2009
Engineer 6 68 400 1,058 1,898
R&D 7 20 30 100 150
Management 5 30 48 120 230
Total 18 118 478 1,278 2,278
Category according to educational background
Ph.D 7 15 20 40 50
Master degree 3 20 50 110 178
Bachelor degree 4 40 150 286 550
College graduate 4 30 100 442 750
Others 13 158 400 750
Total 18 118 478 1,278 2,278
* Creation of new employment effect :year 2005:18 persons, year 2006:100 persons, year 2year 2008: 800
persons, year 2009:1,000 persons.
* 1 person will be added whenever U$0.5Mil turnover increases (estimated)
Keep Green & Heating the world P.55
7. SWOT Analysis
S t r e n g t h s Weaknesses
• World’s first PF fueled burner development –
patent registration • Existing boiler manufacturers’ technology
• Secured fountainhead technology of PF Fuel
direct feeding burner appropriation * Stabilize position as
• Accumulated knowledge of plastic fuel new regenerating energy
• Competition with exist products (gas, oil)
combustion new alternative energy
• Expected monopoly, oligopoly of global • Change in global oil price
market (for over 10 years)
• Professional work staff (business • CO2 Air transpire regulation • Reconnaissance of
management. development) localizing global market
strategy
O p p o r t u ni t i e s T h r e a t s
• Maximize profit of 2 items
• Increase in global oil prices • Overcome Obstacles in boiler market machine and fuel
• Alternative Energy market expansion • Strengthen PR and marketing • Lead change in
regenerating energy
• Government’s active support policy • Ensure insufficient funds paradigm
• Policy for preservation of environment and
• Heighten PF boiler’s low profile
disposal waste
• Strengthen prediction of market demand
• Industrial boiler market expansion
Active&Rapid response to customer demand and market situation change
Keep Green & Heating the world P.57
8. Financial material
1. Presumption I/S (summary) (Unit : Million/U$)
(Total) Category 2005(E) 2006(E) 2007(E) 2008(E) 2009(E)
Sales 1.53 59.3 241.3 658.3 1,194.5
Sales profit 0.814 31.529 122.235 321.693 550.28
Sales profit rate 53.2% 53.1% 50.6% 48.8% 46.0%
Net proceeds 0.021 13.896 55.561 152.774 269.416
Net proceeds rate 1.4% 23.4% 23.0% 23.2% 22.5%
(USA) Category 2005(E) 2006(E) 2007(E) 2008(E) 2009(E)
Sales - 44.4 202.2 543.1 980.9
Sales profit - 23.657 103.045 265.321 451.51
Sales profit rate - 53.3% 51.0% 48.8% 46.0%
Net proceeds - 92.38 45.709 122.079 215.261
Net proceeds rate - 20.8% 22.6% 22.5% 21.9%
(KOR) Category 2005(E) 2006(E) 2007(E) 2008(E) 2009(E)
Sales 1.53 149.00 39.1 115.2 213.6
Sales profit 0.814 7.872 19.19 56.372 98.77
Sales profit rate 53.2% 52.8% 48.8% 48.9% 42.2%
Net proceeds 0.021 4.658 9.852 30.695 54.155
Net proceeds rate 1.4% 31.2% 25.2% 26.6% 25.3%
Keep Green & Heating the world P.58
8. Financial material
1. Estimate Balance Sheet(Korea) (Unit : Million/U$)
Category 2004(E) 2005(E) 2006(E) 2007(E) 2008(E) 2009(E)
Asset
Current assets 0.152 3.806 6.144 12.712 39.529 59.483
Fixed assets 0.457 6.8 10.112 15.127 22.930 30.040
Total assets 0.609 10.606 16.256 27.839 62.459 89.523
Debt
Current debt 0.414 0.390 1.381 3.212 7.036 14.453
Fixed debt
Total debt 0.414 0.390 1.381 3.212 7.036 14.453
Capital
Paid in capital 3.2 4.2 4.2 4.2 4.2 4.2
Capital surplus 9.0 9.0 9.0 9.0 9.0
Profit surplus -2.792 -2.984 1.675 11.527 42.222 62.764
Total capital 0.195 10.216 14.875 24.727 55.422 75.964
Debt and total capital 0.609 10.606 16.256 27.839 62.459 89.523
Keep Green & Heating the world P.59
8. Financial material
2. Estimate Balance Sheet(USA) (Unit : Million/U$)
Category 2006(E) 2007(E) 2008(E) 2009(E)
Asset
Current asset 21.351 48.018 165.444 343.862
Fixed asset 3.2 21.4 47.4 113.7
Total asset 24.551 69.418 212.844 457.562
Debt
Current asset 2.575 12.067 33.414 62.871
Fixed asset
Total asset 2.575 12.067 33.414 62.871
Capital
Paid in capital 3.5 5.5 5.5 5.5
Capital surplus 18.0 18.0 18.0
Profit surplus 9.238 33.851 155.93 371.191
Total capital 21.976 57.351 179.43 394.691
Debt and total capital 24.551 69.418 212.844 457.562
Keep Green & Heating the world P.60
8. Financial material
3. Estimate Balance Sheet(Total) (Unit : Million/U$)
Category 2004(E) 2005(E) 2006(E) 2007(E) 2008(E) 2009(E)
Asset
Current asset 0.152 3.806 27.495 60.730 204.973 403.344
Fixed asset 0.457 6.8 13.312 36.527 70.33 143.74
Total asset 0.609 10.606 40.807 97.257 275.303 547.084
Debt
Current asset 0.414 0.39 3.956 15.179 40.451 76.43
Fixed asset
Total asset 0.414 0.39 3.956 15.179 40.451 76.43
Capital
Paid in capital 3.2 4.2 7.7 9.7 9.7 9.7
Capital surplus 9.0 9.0 27.0 27.0 27.0
Profit surplus -2.792 -2.984 10.913 45.378 198.152 433.954
Total capital 0.195 10.216 36.851 82.078 234.852 470.654
Debt and total
0.609 10.606 40.807 97.257 275.303 547.084
capital
Keep Green & Heating the world P.61
8. Financial material
1. Value analysis
A. Net asset value(BPS) : Estimate (Unit : U$)
Category 2005(E) 2006(E) 2007(E) 2008(E) 2009(E)
Capital total(A) 10,216,000 36,851,000 82,078,000 234,852,000 470,654,000
Treasury stock(B) - - - -
Intangible fixed asset
(C) 764,000 2,380,000 6,270,000 12,370,000 22,400,000
Face Investment stock
evaluation (D: net 21,000 13,897,000 34,465,000 152,774,000 235,803,000
value proceed )
$0.50 (1)Net worth price
(A+B-C+D) 9,473,000 48,368,000 110,273,000 375,256,000 684,057,000
(2)Average stock 8,400,000 15,400,000 19,400,000 19,400,000 19,400,000
Net Worth(1/2) 1.13 3.14 5.68 19.34 35.26
B. PER (Price Earnings Ratio) : Estimate
Category 2005(E) 2006(E) 2007(E) 2008(E) 2009(E)
Ordinary profit (A) 21,000 19,430,000 83,911,000 230,152,000 405,867,000
Current net proceed (B) 21,000 13,897,000 34,465,000 152,774,000 235,803,000
Average stock (C) 8,400,000 15,400,000 19,400,000 19,400,000 19,400,000
Ordinary profit per 0.0025 1,26 4.32 11.86 20.92
Face share (A/C)
value
Average stock (B/C) 0.0025 0.90 2.86 7.87 13.88
$0.50
Stock price 0.5 15,00 50,00 130,00 230.00
PER (ordinary 200.0 11.9 11.5 11.0 11.0
income basis)
PER (current net 155.0 16.6 17.4 16.5 16.5
proceed basis)
Keep Green & Heating the world P.62
9. Investment proposal
Category Proposal 1 Proposal 2 Explanation
Investment participation period
Investment proposal expenditure
Types of stocks issued
Face value price per stock
Issued value price per stock
Predicted number of stocks to be issued
Current capital
Amount of proposal
investment capital
Total capital after
investment
Subscription value cost per share
Keep Green & Heating the world P.63
9. Investment proposal
1. Korea Investment Capital expenditure (Unit : Million/U$)
Cost
Category Content
1st 2nd total
Scale up and large size development (5
R&D million Kcal) 0.2 0.424 0.624
Land 0.4acre lease =$0.3million
Facility Building 1,652m2 lease=$0.15million 0.2 0.3 1.25 1.75
investment Machinery equipment 1set=$0.8million
Marketing Ads, Promotion, PR production 0.1 1.056 1.156
cost
Boiler 200K Kcal 80ea, 30 Kcal 60ea
For sales 110 unit, for backup 20 unit 0.2 0.3 0.725 1.225
manufacture
Operation Wage, Maintenance , Travel expenses,
Transportation, Welfare, Telecommunication 0.1 0.1 0.986 1.186
cost etc.
Preparation
operation Preparation cost 1.059 1.059
cost
Totals 0.5 1.0 5.5 7.0
Keep Green & Heating the world P.64
9. Investment proposal
1-1 1Korea investment fund use plan (1year) (Unit : Million/U$)
Item S ubject Outl ine Co s t (u n i t :1M) E x pl a n
Facility investment Bo i l e r
1.75
Land leas e depos it 3000*100T 0.30
Factory building lease deposit 500py eong*300T 0.15
Office leas e depos it 62py eong*4M \ 0.05 250M*20%
Appliance, furnis hings 0.02
Machinery , equipment Product,assembly line SET 0.80
Car p 2EA*30 M 0.06 Ins tallment pay ment
Fuel
Build net w
Megalopolies 6,8 cities 0.37
Fuel s torage
Product manufacturing 200T Kcal 2.16
Body (molding) 80EA*50 0.04 1EA=0.72M
Burner 80EA*150 0.12 80EA=0.576M
Feed 80EA*110 0.088
Con 80EA*60 0.05
Heat exchange 80EA*220 1.76
UPS 80EA*50 0.04
Des ign 0.004
W age 10People*6M(2months) 0.06
300T Kcal 0.649
Body (molding) 60EA*0.07 0.042 1EA=$10,820
Burner 60EA*200 0.12 60EA=0.649M
Feed 60EA*180 0.105
Control 60EA*100 0.06
Heat exchange 60EA*350 0.21
UPS 60EA*80 0.05
Des ign 0.004
W age 10people*6M(2months) 0.06
Keep Green & Heating the world P.65
9. Investment proposal
1-2 1Korea investment fund use plan (1year)
R&D 0.624
boiler 500Tkcal des ign 0.030
mater 0.030 material purchas e
production cos t 0.040 wage
boiler 100Tkcal des ign 0.050
mater 0.050 material purchas e
production cos t 0.064 wage
boiler 200Tkcal des ign 0.060
mater 0.100 material purchas e
production cos t 0.100 wage
controller, motor, heat exchange 0.100
market 1.156
M cabl per m 0.480
newspaper, magazine, ad per mo 180M*12 0.216 agriculture related magazine
pamph 0.050
Ad TV and magazine 0.100
exhibition participation per 2 times *50T 0.100
demons tration boiler 30*7.2M\ 0.210 demonstration equipment for sales
operation(maintenance cost) 2.847
wage 83people wage expenditure separate 1.094 boiler28people, fuel4 people
welf salary 15%: insurance 0.164
pay ment for the leas e 0.110
telecommunications 0.030
car maintenance 0.052
reception 0.080
expen 0.013
traveling, transportation 0.170
s ales commis s ion 0.623 `06year 623 sales commission
Mis cellaneous 0.511
total 7.602
note) operation cost (maintenance cost):$2.847/12=$237*5mo applied1.186
Keep Green & Heating the world P.66
9. Investment proposal
2. USA Investment fund usage
(Unit :U$)
Category Content Cost
R&D Industrial, power plant burner boiler development U$930,000
Facility investment Equipment production, land, building U$1,240,000
Production 200K Kcal 100EA, 300K Kcal 100EA U$1,802,000
Fuel production Build network, office, storage, machinery U$7,200,000
Marketing cost Ads, mass media ads, PR boiler production U$2,296,000
Operation cost Wage, traveling fee, transportation, welfare. U$1,989,000
Preparation
Preparation cost U$1,543,000
operation
Totals U$17,000,000
note 1) USA Investment fund operation plan sheet attached to appendix
Keep Green & Heating the world P.67
9. Investment proposal
2-1 USA Investment fund usage plan (1year)
Item Subject Details (Unit:USD:$) Mis
Boiler
7,146,000
Land leasehole deposits 16 Acre ?
Factory building leasehole deposits 1 Acre 300,000 20% dep
Office building leasehole deposits 660m2 - 80,000 20% dep
Fixture and furniture 10,000
ent achinery and equipm
Facility investm m ent Production line 800,000
Vehicle and delivery equipm ent 2EA x $30,000 60,000 lease
Plastic Fuel
Manufacturing network set up 20 States x $100,000 2,000,000
Office building leasehole deposits
s 3 St t
a 216,000
Sheredding equipm ent 3 set x 500,000 1,500,000 lease
Fuel Storage 2,000,000
Tr 3 EA x $60,000 180,000
200,000Kcal capacity boiler 720,000
Body 100EA*0.005 50,000 1EA=$7,200
Com bustor 100EA*0.015 150,000 100EA=$720,000
Fuel feeder 100EA*0.011 110,000
Control 100EA*0.006 60,000
Vessel 100EA*0.022 220,000
UPS 100EA*0.005 50,000
Drawing/Diagram Design
, 20,000
Personal expenses 10Px$6,000(2M ) 60,000
Production
300,000Kcal capacity boiler 1,082,000
Body 100EA*0.007 70,000 1EA=$10,800
Com bustor 100EA*0.020 200,000 100EA=$1,080,000
Fuel feeder 100EA*0.018 180,000
Control 100EA*0.010 100,000
Vessel 100EA*0.035 350,000
UPS 100EA*0.008 80,000
Drawing/Diagram ,Design 30,000
Personal expenses 12Px$6,000(2M ) 72,000
Keep Green & Heating the world P.68
9. Investment proposal
2-2 USA Investment fund usage plan (1year)
930,000
1 Million Kcal capacity boiler Draw ing&Diagram 20,000
M aterial 40,000
Production cost 30,000
Scale Up 3 Million Kcal capacity boiler Draw ing&Diagram 30,000
R&D M aterial 120,000
Production cost 90,000
5 Million Kcal capacity boiler Draw ing&Diagram 50,000
M aterial 200,000
Production cost 150,000
m
Product com ercialization 200,000
2,296,000
Advertising expense on TV $100,000x12M 1,200,000
Advertising expense on newspaper and magazine $45,000/M x12 480,000
Marketing Brochure 100,000
advert Advertising TV & M agazine 200,000
Exhibition 2x$50,000/year 100,000
Boiler for demonstration 30EA x $7,200 216,000 Demonstration use
7,957,000
Salaries and wages 3,690,000 Boiler 52P/ Fuel 31P
Welfare expenses 371,000 15%of Salaries
Rental ex 260,000
m
Com unication charges 40,000
Maintenance expenses 36,000
Reception expenses 50,000
Operating Supplies expenses 60,000
expenses Traveling expenses 150,000
m
Sales com ission 1,500,000 1,500 unit s ales /2006
Legal fees 100,000
Other expenses 1,700,000
Totals 20,131,000
note) operation cost (maintenance cost):$7,957,000/12=$663,000*3mo=$1,989,000 applied
Keep Green & Heating the world P.69
10. Current Proceedings
USA progress -1
2003 April: Invited to Pennsylvania State University USA to participate in US plastic regenerating and GRT’s
technology forum.
Presented GRT’s technology project (participation from NYU, Cornell University, Yale University, Ministry of
Agricultural Affairs Energy Department, Environment Department)
2003 June: After forum PSU decides to adopt GRT technology and has discussion about support method.
2003 July: decide on MOU Agreement
2003 Aug: MOA Agreement
☞ MOA main content- advance site test for the GRT developed plastic fuel combustion boiler to penetrate
US market and gas emission test and analysis, various plastic fuel research and development expected
Researcher : James Garthe PE, Dr. William Lamont, Dr. Michael Orzlek, Matt Laurece, John Shea
2003 Dec: PSU Agricultural Engineering college and Floriculture college installs GRT boiler experiment site.
US state and federal Ministry of Agricultural Affairs, Energy, Environment participated, total of 70 boiler
demonstrations
2004 April: US Clean Energy Expo participation
2004 April: PSU, Ministry of Agricultural affairs, US Plastic Council have a meeting to find GRT technology
support method
2004 May: American Plastic Council make agreement with GRT to support technology
2004 June: PSU Ministry of Agriculture make agreement to support GRT technology and disposal of
agriculture plastic fuel development technology
2004 July: PSU state government Korean representative team inspects company (officer Kenneth Yang)
2004 Sept: participated in USA ASP meeting
2004 July-Aug : USA Pennsylvania state support meeting (3 meetings)
2005 March: USA ASP meeting participation project presentation
2005 March: participation in USA Floriculture Crop Expo
2005 May: USA local gas emission test : (APC support)
2005 July: participation in ASAE meeting – GRT technology presentation USA
2005 Aug: participation in APD(Ag Progress Day) – consultation on adoption of support project
Keep Green & Heating the world P.70
10. Current Proceedings
USA progress -2
2005 September current progress
◈US federal government and Pennsylvania state government energy department (DOE) reviews GRT
technology
☞ uses GRT boiler gas emission test results as enactment data
◈USA Pittsburgh City and Allegheny County: support for GRT USA local company establishment
☞ provide factory land and tax support along with consultation for inducement
◈USA Geo Thermal Technology representative Jack DiEnna (Thermal system inventor) cooperate on
operation
◈ Future USA exhibition participation
☞ Ohio Farms Science Show : 2005 Sept 22-25
☞ Michigan Greenhouse Fair : 2005 October
☞ Toronto Greenhouse Crops Fair: 2005 November
◈ Canada progress
☞ officer in charge : Robert Tuss - British Columbia province and Ottawa province Department of
Agriculture and Federal Government Department of Agriculture consult to test operate GRT boiler
☞ UNEP support agenda agreement in progress
Keep Green & Heating the world P.71
11. Miscellaneous
Monday, August 29, 2005/What the Press is saying!/www.centredaily.com
Posted on Fri, Aug. 19, 2005R E L A T E D C O N T E N T
Jason Malmont/ for the CDT
Matt Lawrence, a grad student for Penn State Agricultural and Biology Engineering, talks to Mike Todd, of Montgomery
Pa., about the new heater that runs on used plastic and burns cleaner then natural gas on Wednesday afternoon at the
Ag Progress Days.
Plastic waste a burning problem By Anne Danahy adanahy@centredaily.com
ROCK SPRINGS -- Plastics.
That was the word uttered to the Dustin Hoffman character in the 1967 film "The Graduate" by a party guest who
promised there was "a great future in plastics."
Farmers have found plastics, too -- for plant pots, greenhouses and mulches. But "plasticulture" has produced a problem
of its own: what to do with all the plastic once farmers are finished with it.
James Garthe, an agricultural engineer in Penn State's department of agricultural and biological engineering, said the
answer has been to throw the nonrecyclable items in the garbage.
So he and a team at Penn State are working with a South Korean company, GR Technologies, on the development of a
plastic burner they hope will provide a better answer.
"We are taking plastics that cannot be recycled, and we are converting them to fuel," Garthe said before dumping
another bucket of plastic pellets into the prototype burner Thursday.
The burner, on display at Penn State's Ag Progress Days, drew attention from passers-by who stopped to watch the
flame that shoots out one side.
Plastic waste is converted into pellets and fed like coal into the burner, which reaches 2,000 degrees Fahrenheit. The
burner could heat water, which in turn could heat a greenhouse.
Garthe said a team at Penn State had developed Plastofuel -- plastic nuggets -- to burn with coal in a coal-fired burner. A
study on the project was released and not long after, in late 2002, Garthe heard from William Bang, CEO of GR
Technologies.
That company has developed a burner, which Bang hopes to manufacture in Pennsylvania and find a market for in the
United States, which uses 67 million tons of plastics a year in agriculture alone. The plan is to modify the burner so it can
burn Plastofuel.
Before the project can be sold, it will need to get governmental approval. A $32,000 test completed by an independent
company in May and paid for by the American Plastics Council found good results for air emissions.
Anne Danahy can be reached at 231-4648.
PS- Word on the testing is all "THUMBS UP!" Release pending
Keep Green & Heating the world P.72
11. Miscellaneous
Keep Green & Heating the world P.73
11. Miscellaneous
> USA Floriculture boiler number
F l o r i c u l t u r e c r o p s : Nu mb e r o f l a r g e g r o w e r s a n d g r o w i n g a r e a , b y t y p e o f c o v e r 1/
Ty pe of cover 1998 1999 2000 2001 2002
Un i t d
e
Number of growers 5,199 4,793 4,851 4,738 4,612
Glas s greenhous es 66,094 62,660 66,177 70,214 69,952
Fiberglas s /rigid hous es 85,258 81,616 86,023 82,849 79,407
Film plas tic hous es 316,539 308,037 311,148 309,006 316,152
Total greenhous e cover 467,891 452,313 463,348 462,069 465,511
Shade/temporary cover 353,340 358,771 361,372 358,963 353,764
Total covered area 821,231 811,084 824,720 821,032 819,275
Covered area per grower 158.0 169.2 170.0 173.3 177.6
Open field (acres ) 31,675 27,784 30,250 29,048 30,658
Total production acres 50,528 46,404 49,183 47,896 49,466
Sales per acre (dollars ) 72,064 81,292 86,493 93,874 93,442
Sales of floral crops ($) 3,641,232 3,772,275 4,253,980 4,496,225 4,622,197
No r t h e a s t :
Number of growers 1,013 930 932 933 908
Glas s greenhous es 14,157 14,073 14,339 15,978 16,171
Fiberglas s /rigid hous es 5,114 4,572 4,751 6,224 6,013
Film plas tic hous es 46,287 44,728 48,103 44,921 46,148
Total greenhous e cover 65,558 63,373 67,193 67,123 68,332
Shade/temporary cover 1,176 1,417 1,353 1,824 2,221
Total covered area 66,734 64,790 68,546 68,947 70,553
Covered area per grower 65.9 69.7 73.5 73.9 77.7
Open field (acres ) 3,562 3,217 3,174 3,830 4,051
Total production acres 5,094 4,704 4,748 5,413 5,671
Sales per acre (dollars ) 93,841 107,622 114,608 106,079 106,350
Sales of floral crops ($) 478,027 506,295 544,115 574,184 603,078
Keep Green & Heating the world P.74
11. Miscellaneous
Mi d w e s t :
Number of growers 1,312 1,222 1,274 1,253 1,212
Glas s greenhous es 18,515 18,019 17,678 18,875 19,019
Fiberglas s /rigid hous es 11,512 12,193 12,753 12,978 12,432
Film plas tic hous es 77,916 74,596 76,365 76,850 82,124
Total greenhous e cover 107,943 104,808 106,796 108,703 113,575
Shade/temporary cover 2,818 2,444 2,623 2,879 3,809
Total covered area 110,761 107,252 109,419 111,582 117,384
Covered area per grower 84.4 87.8 85.9 89.1 96.9
Open field (acres ) 3,437 2,735 4,064 4,260 4,494
Total production acres 5,980 5,197 6,576 6,822 7,189
Sales per acre (dollars ) 115,151 132,956 120,129 121,884 117,843
Sales of floral crops ($) 688,573 690,997 789,959 831,441 847,145
S ou th :
Number of growers 1,722 1,607 1,608 1,555 1,540
Glas s greenhous es 12,796 13,072 12,681 14,147 13,771
Fiberglas s /rigid hous es 15,426 16,526 22,979 19,047 17,203
Film plas tic hous es 108,978 110,453 109,377 108,042 108,112
Total greenhous e cover 137,200 140,051 145,037 141,236 139,086
Shade/temporary cover 316,903 319,537 317,874 312,434 305,338
Total covered area 454,103 459,588 462,911 453,670 444,424
Covered area per grower 263.7 286.0 287.9 291.7 288.6
Open field (acres ) 12,083 10,632 11,013 9,611 10,448
Total production acres 22,508 21,183 21,640 20,026 20,651
Sales per acre (dollars ) 58,799 65,569 71,169 82,925 85,435
Sales of floral crops ($) 1,323,432 1,388,928 1,540,097 1,660,636 1,764,281
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11. Miscellaneous
W e s t:
Number of growers 1,152 1,034 1,037 997 952
Glass greenhouses 20,626 17,496 21,479 21,214 20,991
Fiberglass/rigid houses 53,206 48,325 45,540 44,600 43,759
Film plastic houses 83,358 78,260 77,303 79,193 79,768
Total greenhouse cover 157,190 144,081 144,322 145,007 144,518
Shade/temporary cover 32,443 35,373 39,522 41,826 42,396
Total covered area 189,633 179,454 183,844 186,833 186,914
Covered area per grower 164.6 173.6 177.3 187.4 196.3
Open field (acres) 12,593 11,200 11,999 11,347 11,665
Total production acres 16,946 15,320 16,219 15,636 15,956
Sales per acre (dollars) 67,932 75,911 81,523 87,386 84,737
Sales of floral crops ($) 1,151,200 1,162,936 1,322,261 1,366,376 1,352,063
1/ Includes growers with at least $100,000 in annual floriculture sales; growers are located in the 36 surveyed States.
Floriculture sales per acre are based on expanded wholesale value of floriculture crops.
Sources: Floriculture Crops, NASS; ERS.
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Thank you !
Contact Information
CEO : William Bang
Contact : 02-3452-9159
Contact : 011-9956-1010
E-mail : william@highgr.com
www.highgr.com
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