Mishergas Energy Recovery
- Investment sought:
- Equity offered:
Our Mishergas statement is “waste is only unrealised potential”.
We strive to develop sustainable answers to environmental hazards whilst creating profitable business models.
With Energy Recovery, we aim to transform the liability of waste tyres into saleable commodities, using a specially formulated process that is designed to clean up this potential threat in an environmentally responsible way.
In the UK alone, there are around 50 million tyres that are discarded, every year. These are a huge potential hazard to both the environment and human health. Our specially designed " Mishergas Process" will aim to eventually clean up at least 10% of the waste tyres in this country. Not only that, we plan to convert them into saleable commodities; these will be oil, recycled carbon black and steel. By recycling the oil from the tyres, we believe this will reduce the need for fracking and by refining the carbon black and collecting the steel, it also will cut down on the necessity for mining.
Once we have established this technology in the UK, we intend to replicate it; cleaning up waste, recovering its energy and creating valuable products.
We believe the Mishergas Process of Energy Recovery has huge potential benefits, we have estimated it could offset the carbon equivalent of 120 million trees every year.
Substantial accomplishments to date
After years of research, we have developed our Mishergas Process. It began with building our own small scale model to understand the mechanics behind the technologies of pyrolysis and gasification. We then had to find the right engineers and manufacturers for what was required for the up-scaled plant that would achieve our vision. These had to be established companies with proven track records. We have worked to bring together the optimum combination of these technologies from around the world to be incorporated seamlessly into the Mishergas Process.
Since last year's funding success, we have achieved all of our targets and have secured the tyre supply, the site and building and grid connection for the first facility in the North East. We also have sourced a potential second suitable site in the North West.
Following our initial raise, our environmental permit team have been working with the Environment Agency to ensure that we get everything done to their specifications. The electricians, manufacturers and project developers have worked together producing a best practice layout design which will fulfil planning and permit regulations and for the smooth operation of the plant itself. This means that, all going well, the first site, can be then taken into the next phase of development required by the final funders. According to our timelines, the plant should be fully commissioned and operational by October 2018.
For Mishergas to have the ER 1 development ready for sale, the project must have both planning permission and have been submitted for the environmental permits. A full due diligence report on all aspects of the development is also necessary and, as well as this, all the contracts will need to be prepared for financial close. This is what the funding from this campaign will be used to complete in order to present a whole package that is ready for the final investor.
Each project developed using the Mishergas Process will be purchased as a complete package that will also pay an annual "know-how" licence fee. A portion of the sale price can be reinvested for the next development.
We intend to replicate this across the UK and then extend into other countries.
Use of proceeds
This round of funding will be used to complete the necessary due diligence report required and to submit our planning application for the Energy Recovery facility. We will finalise our sales contracts for the different revenue streams for the recovered commodities from the Mishergas Process and complete negotiations with investors and financial institutions.
We intend to obtain planning permission, and the environmental permit, complete the due diligence and legal processes required for financial close. We also plan to secure the Engineering Procurement Construction (EPC) and Operations and Maintenance (O&M) contracts which are necessary for completion.
Once Mishergas has achieved the "shovel ready" state described above, the ER1 development will be sold. It will then be implemented, constructed and commissioned by another specialised chosen company on behalf of the final funding body.
Our target market for achieving financial close will be from renewable funds, hedge funds and financial institutions with a green ethos.
During our initial negotiations with these potential investors, it has become apparent that they would prefer the project to be sold directly to them and have it managed by an Operations and Maintenance company.
Characteristics of target market
The Renewable Investment sector is currently looking for new investment opportunities, particularly since the down turn in wind and solar developments due to the cessation of government backed subsidies such as ROCs (Renewable Obligation Certificates) in March of this year. Mishergas believes that therefore we are in an ideal position to attract this investment.
We will be using the services of an established financial institution to introduce us to their client list in our target sector and will also help us to market the finished product. Our barrister will be guiding us through the legal process once these negotiations are underway.
Once we have successfully implemented our first development, we aim to set up other Energy Recovery centres around the country. Although other people are looking at similar technologies, we believe we will have the advantage of the track record for our Mishergas Process that we have been working on developing to date.
We believe we have the flexibility of thinking and dynamism which means that we persevere, adapt and succeed where others tend to fall. With the backing of the crowd, we hope that this loyalty and enthusiasm will continue with future developments to help make a positive change for a cleaner, greener future.