Mishergas Green Energy
- Investment sought:
- Equity offered:
Our Mishergas model will aim to produce a constant supply of 8 MW per hour of green energy which is enough for 15,000 homes. We intend to do this by turning waste tyres into electricity using self-sustaining, environmentally friendly technology. We believe this not only solves a problem of waste tyres and pollution but also reduces the need for mining, fracking & dependence on fossil fuels. Unlike the fluctuations of supply with wind and solar, we can supply electricity round the clock and plan to recover the oil, carbon black & steel which are also saleable commodities. We therefore feel that Mishergas is both green and has a great business model.
We would be cleaning up a waste product with potential environmental hazardous effects in an environmentally responsible way, and recovering the embodied energy from waste tyres to convert them into saleable commodities: electricity, carbon black and steel.
We will aim to supply 8 Mw every hour, 24 hours a day of green electricity.
Once we have established this technology in the UK, it can be replicated cleaning up waste & recovering its energy.
Substantial accomplishments to date
We believe we will be starting a new form of green energy production that will be a constant supply as well as helping to solve a waste problem.
Mishergas has sourced a reliable tyre supply, negotiating Power Purchase options, researched and sourced the necessary machinery, done feasibility studies on sites, spoken with related parties and have done public presentations. Once we have achieved the necessary funding we will apply for planning permission and aim to secure all the necessary contracts.
We have three revenue streams:
1. We will aim to supply 8 Mw every hour, 24 hours a day of green electricity. We anticipate that this will be for a minimum of £100 per Mwh and include ROCs or CfDs as government-backed payments for renewable energy.
2. We have found that Carbon black, which we plan to enhance to the highest standard, can be resold back to tyre manufacturers at around £400 a tonne (we hope to produce around 15,000 tonnes a year), it is also widely used as the black pigment in the plastics industry.
3.The other commodity produced is steel (we estimate around 4,000 tonnes a year) which can also be sold.
Use of proceeds
This is to complete the technical and commercial negotiations of the plant and machinery, enter into tyre supply agreements, take out an option on our chosen site, obtain a grid connection offer and apply for the necessary planning permissions. This stage will take three months.
The next stage would be to accept the grid connection offer, enter into legal agreements for the grid connection, obtain planning permission, enter into a power purchase agreement and agree terms for the supply of the plant and machinery including maintenance and performance guarantees. A separate round of funding will be required. We hope this will also be through crowd funding. Once those tasks are completed, which will take at least five months, the business will be “shovel ready” and we will complete negotiations with major funders for the balance of the £17 million needed.
We are in advance negotiations with energy companies and as part of our "shovel ready" state, will aim to secure a Power Purchase Agreement with one of them for the price that they will buy the electricity for, per megawatt per hour. We anticipate that we will sell our electricity for a minimum of £100 per MWh.
This contract will be renewed up to every five years, or, if we wish to, due to commercial viability, we can change to another energy company that offers better terms.
If we can get "power on" by March 2017, we also anticipate being able to benefit from ROCs, however if we are unable to achieve this deadline, we can still expect to have a twenty year CfD which will set the price per Mwh.
We will have a salesperson who will be dedicated to finding the best prices for sales of carbon black and steel. We anticipate that the sales of carbon black will be at least £400 per tonne and the minimum price for steel will be a scrap price per tonne.
Characteristics of target market
Electricity is always something that there is a huge demand for. We anticipate that there will be no problem with demand for energy. With a move towards the production of renewable energy, we aim to be prime movers in the production of a constant supply of this. As above, we believe our supply would have a consistent and assured market price per Mw produced, per hour.
Carbon black is used widely in industry, especially plastics and tyre manufacturers. We intend to produce carbon black to any grade, thereby giving us flexibility in the market place.
Our goal is to become a supplier to the National Grid, however we are also in talks with a couple of energy companies to ensure that we get the best price for our power supply. We have no need to put large sums of money into marketing or PR!
Once we have successfully implemented our business idea 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 first mover advantage.
We will aim to contract our waste suppliers into long term supply agreements to ensure continual supply.
We believe we have the flexibility of thinking and dynamism which means that we persevere, adapt and succeed where others tend to fall. Because we would have 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.
In the past, we have set up and developed a company in the environmental/waste management sector. We transformed farm waste into the first "Living Compost" using wormcast from our wormfarm and factory manufacturing facility.
We have considerable experience in consultancy & renewable energy developments. In our experience, our combined expertise and passion means that we are at the forefront of innovative developments.
Our waste suppliers will be contracted into long term supply agreements to ensure continual supply.