Caribbean Plastics Recycling Limited (CPRL)

PET bottles are non-biodegradable materials. Yet unprecedented amounts can be found in our landfills, streets, natural waterways and our oceans. SMCL wants to provide an avenue to re-process post-consumer PET bottles generated in Latin America and Caribbean (LAC). We believe that plastic waste is a resource.

 SMCL is proposing to establish a recycling plant in the Dominican Republic (DR). It will have the capacity to remove approximately 16,000 metric tonnes (MT) of baled PET bottles from the environment annually. The plant is modular by design, allowing it to be scaled up to process more post-consumer plastics.

Post-consumer PET bottles collected from the within DR and neighboring countries (e.g. Haiti, Cuba, Jamaica and Bahamas) can be recycled at this facility. As such, the facility will provide both direct and indirect employment. Once ‘Proof of Concept’ is established, another facility is earmarked for Trinidad and Tobago (T&T).

Globally 359 million mT of plastics are generated annually, however, only 1% of this is recycled. Recycling has been around for many years. However, due to the lack of recycling plants in comparison to virgin plastics generated, it would appear that our recycling systems are designed to fail.

To exacerbate this problem China has placed restrictions on plastic waste entering its borders. Inevitably forcing all countries to revise how they deal with waste and to take personal responsibility for waste generated within their countries. How are LAC countries going to manage their own plastic waste? 

According to data published by SIDS DOCK 2015, DR, Haiti, and Trinidad and Tobago collectively produce 1,131,459 mT of plastic waste annually.  DR has experienced literally waves of plastics turning up on their shorelines following periods of perennial rains. In T&T, indiscriminate disposal of plastic waste is one of the contributing factors to national flooding catastrophes. Haiti’s poor waste management system has been widely publicized.

Lack of Education and Awareness pertaining to plastic recycling and limited opportunities for the processing of post-consumer plastics after it is collected are contributing factors. MRF operators in LAC now have an outlet to process their baled plastics as opposed to being exported.

The populations that we intend to serve are mainly the DR and Haiti, however as we expand the wider LAC shall become part of our recycling value chain. Daily the DR 1,250 metric tonnes are plastic waste. The country exports 30,000 mT of recycled plastic annually generating 16M USD. The DR is in the process of rethinking/redesigning the plastics industry from a linear economy to a circular economy.

 Locally we are working closely with a NGO - Grupo Puntacana Foundation and other suppliers of post-consumer PET bottles. This foundation is accredited with launching the first zero waste project in the DR. Currently the foundation operates a sorting facility, processing approximately 260 mT of PET annually and is expected to increase by 5-10% annually. Our initial plan is to process all the current and future PET sorted by the foundation and other suppliers of post-consumer PET bottles.

 In Haiti, SMCL has forged a strategic alliance with the Plastic Bank (See link), a renown global plastic collection facility that provides employment for several impoverished families. Plastic Bank has plans to further expand their initiatives in Haiti, however, with the limited recycling facilities available worldwide, it is challenging to grow their operations.

The post consumer PET obtained will be forwarded to the granulating equipment to produce uniform and consistent flakes of the highest quality. This is necessary for the production of approved food grade rPET in the bottle to bottle industry. The shredded flakes produced by the granulator undergo a dry cleaning process which is critical to remove any loose contamination. Any dirt particles which still exist within the granulated flakes will be removed during this process. The next step is the removal of any residual labels, adhesives and any pieces of caps. This can also cause harm to the downstream process. A chemical solution will be used to remove the adhesives. Because of the difference in their specific weights, the cap materials can be separated from the heavy PET flakes in a process called the float-sink sequence. There is also a Multi-stage post-washing with hot water, followed by a drying process. The final stage is the extrusion process. The washed flakes are then heated at specific temperatures in a vacuum tank to produce noodle like tubes which is then cut into equal sized pellets. These pellets, also called resins, can now be used to produce new 100% rPET bottles or containers. 

The search for equipment took the team to all parts of the globe. Consultation was made with leading beverage manufactures Coke, Nestle, PepsiCo to ascertain the recycling technologies that have been approved by their facilities. etc. Guided by these companies recommendations as well as the FDA packaging specifications SMCL contacted various PET recycling equipment manufactures. Months of research and communication was conducted with these Original Equipment Manufactures to determine what will be the most appropriate recycling equipment to suit the project’s needs. Our search was then narrowed down to manufacturers who provided turnkey projects to supply a complete PET bottle to bottle operating facility to the proposed location in Dominican Republic. 

Our proposed project is a new application of existing technology to serve a new population. We are proposing to construct the first rPET resin producing facility in Latin America and Caribbean. This is a greenfield initiative and addresses a new population. Coca-Cola’s R&D division announced in 2019 the acceptance and utilization of rPET resins made from reclaimed ocean plastics in the manufacture of their PET packaging. Our OEM technology provider embodied new technologies to manufacture rPET resins from reclaimed ocean plastics, thus applying a new application to an existing technology.

Our commercial buildings shall be LEED certified. Cost of power in The Dominican Republic is US$ 0.16 cents / kW/hr when compared to Trinidad and Tobago where it’s 0.06 cents / kW/hr. We plan to utilize where practical solar power generation, adopt energy efficient technologies and conduct annual energy audits. It is our intent to be the first rPET facility powered off the national grid in the fifth year of operation.

Given the volume of plastics that is churned out annually in Latin America and Caribbean, insufficient resources are invested into the successful recovery and recycling of post-consumer plastics. With China’s Green Fence ban on plastic waste, countries have been hit with the cruel reality where they need to recycle / re-process their own waste.

Limited financial funding (Grants) for recycling initiatives plague this region and thus exacerbates the problem further. SMCL desires to be that link to help Close the Loop in creating a sustainable recycling value chain model.  

Our partner the Carbon Zero Initiative of Trinidad & Tobago (CZITT) ran an educational pilot program with National Secondary Schools Climate Quiz (NSSCQ) with competing teams of students from secondary schools across Trinidad and Tobago.

Baseline Survey – Assessment of the understanding of students in environmental matters, specifically towards climate change before the staging of the quiz. A random selection 30 of 140+ schools nationwide was done and administered a 20-question survey to 20 students randomly selected at each school visited. This data was analyzed, and a report was produced.

Preliminary Quiz Round - 112 schools across the country, participated in the Preliminary Round. The schools were visited and administered a paper consisting of 50 questions to be completed in half an hour by a team of 20 students selected by the school.

Final Quiz Rounds - The Top 16 schools were chosen based on the highest scores in the Preliminary Round and competed in a game-show style, knockout competition.

Impact Assessment Survey – A survey was conducted post television airing of the Climate Quiz Finals and was compared to data gathered from the Baseline Survey. The winning school won a Challenge Trophy and automatically entered CZITT’s Project Zero to become Carbon Neutral with technical and financial support from CZITT, SMCL and our corporate partners.

Part of our Corporate Social Responsibility is to replicate similar pilots in LAC whereby corporations can compete in similar initiatives and their prize money donated to select schools to assist in their recycling progammes. 

Year 1 Goals

Presently, we are at the seed financing stage and need to obtain funding for the engineering study. Within a year's time we are aiming to complete the engineering study and commence construction of the DR facility by quarter three in 2020. Simultaneously, we are working on getting involved in plastic waste collection and public awareness initiatives both at a private community and state levels in Trinidad and Tobago. 

At present SMCL is compiling a comprehensive package to tender for a state contract for stakeholder awareness on a soon to be released beverage container bill. SMCL also acknowledges that to expand its feedstock sources requires engaging in educational awareness initiatives to sensitize relevant stakeholders (Governments, schools, end-users etc.) of the importance of their roles in participating in the recycling value chain.

Year 5 Goals

Over the longer-term period of five years we are aiming to expand the DR plant to at least twice its original size. This will require securing additional feedstock sources, which can be obtained from various collection organizations present in the DR and other Latin American and Caribbean (LAC) countries. Members of the SMCL team have visited Cuba and established strategic alliances to access their PET plastic waste.

In Trinidad and Tobago, we envision in five years our collection and public awareness programme would have been successfully executed.  Enabling us to harness adequate feedstock to supply either a newly constructed plant in Trinidad or to add to the feedstock supply of the expanded DR plant. 

1. Seed Financing (short term barrier)

Obtaining financial resources to commence the first phase of the engineering study has proven to be the most challenging aspect to date. SMCL has pursued preliminary discussions with various Debt/Equity financiers.  However, these financiers have been hesitant to invest in the first phase of the project, Stage A financing, but have indicated a profound interest in Stage B & Stage C financing.

Our next steps – Financing for an Engineering Study

1st phase - Feasibility Study: Costs USD $60,000.00

2nd phase - Conceptual Study: Costs USD $163,000.00

SMCL has done significant work in the preparation of preliminary Projected Financials and the engineering study shall validate our financial projections. 

 2. Operational Experience (Short to Medium Term Barrier)

Construction and commissioning of the recycling plant is carded to take a little over a year. The SMCL team does not possess adequate experience to operate and maintain the recycling facility. Hence, access to qualified personnel is warranted. Preferably, recruiting within country where feasible shall maximize local content.

3. Sustainable External Feedstock (Medium to Long-term Barrier)

Because of the Basel Convention and the Transshipment of Hazardous Goods across borders, the importation of baled post-consumer plastics may be considered hazardous goods.

4. Education and Awareness (Long-term Barrier)

Changing the narrative, the citizenry of the countries in Latin America and Caribbean towards Recycling the Management of Municipal Solid Waste and Energy Conservation. This is the most critical barrier yet shall be the most challenging to execute as cultural change takes time.

1. Working with financial bodies such as IADB, Caribbean Development Bank and GEF to list a few to gain access to Grant Funding, primarily for R&D and Seed Financing.

2. An Operations & Maintenance contract is envisaged with an experienced international partner such as Indorama Ventures who has a global footprint, including operations in Mexico. Also, working closely with Technical Schools and Universities to gain access to operational personnel.

3. Creating an entrepreneurial model for countries exporting baled plastics. Again, working with bodies such as IADB, Caribbean Development Bank and the GEF to access grant funding and work with specific in country partners to create Washed PET Flakes of higher market value than dirty baled PET bottles. These washed flakes shall no longer be considered hazardous waste and can be inputted as feedstock higher in the process chain of the facility. Countries shall benefit via this model, because there’s now a FOREX revenue generator, addressing environmental issues and creating sustainable employment without a high CAPEX cost of a rPET plastic resin facility.

4. Working closely with Government stakeholders, the private sector and the Non-for-Profit Organisations to create a robust, fun, educational and awareness programme. The development and implementation of a national public education and sensitization campaign for recycling of beverage containers. SMCL has ongoing progressive discussions with Government Ministers, Foreign Embassies / Missions and NGOs within The Dominican Republic, Haiti, Jamaica, Cuba, Bahamas and Trinidad and Tobago to secure feedstock and buy-in for our proposed rPET facility.

Full-Time: - 2

Part-Time: - 3

Contractors: - Legal Consultant, Media Production House, Project Financing Consultant, OEM Equipment Manufacturer of proposed plant.

Our proposed project addresses several Sustainable Development Goals in the countries where we shall operate and speaks to the Triple Bottom Line as it shall address Environmental challenges as it pertains to Ocean and Landfill bound plastics. Our facility shall provide gender equality employment opportunities and be active in the community via our Corporate Social Responsibility initiatives thus addressing our Social obligations. Lastly, we shall contribute to the Economic development of the countries where our facility is located as the product produced can engender Foreign Exchange via its exportation and adds to the GDP.

Our CEO & Founder hold an MBA in Sustainable Energy Management from the UWI Arthur Lok Jack GSB University and another MBA in Strategic Marketing from Anglia Ruskin University (UK). Combined fifteen years’ experience as a Business Development Director and CEO.

Our COO & Co-founder hold an MBA in Sustainable Energy Management from the UWI Arthur Lok Jack GSB University. Seventeen years as Senior Operator in the Power Generation industry. He is also a Certified Energy Manager (CEM) awarded to him by the Association of Energy Engineers (AEE).

Our CFO holds an accreditation from the Association of Chartered Certified Accountants (ACCA) and is currently pursuant of an MBA in Sustainable Energy Management from the UWI Arthur Lok Jack GSB University. Over a decade of experience has been obtained in auditing multiple industries.

Other supporting staff includes our Linguistic Consultant who is a foreign language tutor and lecturer with 20 years’ experience.

Because our project is holistic by nature, we are seeking to address the woes associated with Ocean and Landfill bound plastics across Latin America and Caribbean. We developed strategic relationships with local and international NGO’s to provide Education and Awareness programs and in some cases basic social services. By having a sustained robust Education and Awareness Program, we can change the narrative of our citizenry geared towards Recycling and the efficient Management of Municipal Solid Waste (MSW). We practice energy management and energy efficiency and shall inculcate a sustained Energy Conservation Plan from plant design, building construction and via the training of our employees. We are proposing to partner with 10 Power to have our facility powered via the utilization of Renewable Energy thus adding Solar Power Generation into our energy mix.

We have Letters of Intent from these NGO’s explicitly expressing the nature of our relationships. Below is a list of the NGOs’ with whom we have a relationship: -

• Several Landfill Operators in Latin America and Caribbean
• Grupo Puntacana Foundation: - http://jakekheel.com/about/
• Plastic Bank: - https://youtu.be/SdLQLaZO10U
• Carbon Zero Initiative of Trinidad and Tobago (CZITT):- https://www.youtube.com/channel/UCHwysTnvt-wAIxMvJG2gABQ 
• 10Power | Clean Growth: - https://10pwr.com/

Key Partners

• PET Bottle Manufacturing Companies that require rPET Resins 
• Grupo Puntacana Foundation, Plastic Bank, suppliers of baled PET
• Supplier/Manufacturer of equipment

Key Activities

• Registering Caribbean Plastics Recycling Ltd.
• Secure Feedstock Supply Contractual Agreements.
• Secure Off-take Contractual Agreements
• Secure project financing (debt and equity).
• Sign Operations and Maintenance Contract
• Secure land and/or building facilities for recycling plant
• Secure Design Build Construction Contract

Value Propositions

• SMCL aspiring to be the first and largest Company in LAC to produce food grade Post-consumer Recycled PET regionally
• Alleviate environment pollution enabling PET bottles to be used more than once
• SMCL is committed to engage in sustainable activities that will promote a circular economy by enhancing the collections of post-consumer PET packaging, recycling/processing and distribution to markets desirous of rPET plastics locally and regionally. 

Key Customers Segments

• PET Bottle Manufacturing Companies that require rPET Resins (Coke, Nestle etc)

Key Resources

• Financial (Seed financing, Debt and Equity)
• Plastic raw material (waste)
• Land and building facilities for storage and processing 
• Human Capital 
• Specialized equipment (sorting, shredding, cleaning, melting, making pellets)     

Cost Structure

• Engineering Study
• Fixed Costs: land, equipment, utilities, loan repayment, legal, consultancy etc
• Variable costs: Transportation/shipping, training costs, quality assurance and control testing, 15% contingency, collection costs, maintenance cost
• Decommissioning Costs

Revenue Streams

• Sale of recycled resins based on medium to long term fixed off-take contracts

In the short-term Grant Funding is required to commence an Engineering Study to establish feasibility and operational costs. Once feasibility is established a long-term Project Financing arrangement is envisaged with a Debt to Equity ratio of 70/30 percent respectively. The plant is expected to generate a positive NPV, with an IRR around 20%. A review of the base-case and worst-case scenarios indicate that the payback period lies between 5 years and 13 years respectively. This shall be confirmed by the Engineering Study.  Feedstock and off-take contracts shall be arranged to secure post-consumer PET plastics for production and for the purchase of FDA approved rPET resins by PET packaging manufacturers. These contracts will be at least five years with an option to revisit based on market conditions and contract prices shall be arranged to ensure that favorable profit margins would be obtained.

The off-take contract shall target globally established food and beverage manufacturers most of whom publicized their mandate to utilize 100% rPET resins in all their PET plastic packaging by 2025:– https://www.nestle-caribbean.com/media/pressreleases/allpressreleases/nestle-creates-market-food-grade-recycled-plastics-launches-fund-boost

Feedstock contracts shall be obtained from organisations selling post-consumer PET and NGO organisations e.g. Plastic Bank, Grupo Puntacana Foundation to ensure that the plant as has a sustainable supply of raw materials. The Operations and Maintenance Contract will be awarded to a Team that has ample experience and resources in managing facilities of a similar size and scope. The plant shall be constructed in a Free Zone to leverage upon specific in country taxation and other affiliated advantages.

Winning the IDB’s Rethink Plastic Challenge assists us in many ways. Firstly, the first prize of USD $30,000 can be immediately utilized to offset our costs to conduct a Feasibility Study. This study is CRITICAL and shall inform potential Stage B and C financiers of the Total Cost of Operations over the life of the plant. Secondly, we are using a Project Financing model, so we are desirous of being selected by the IDB Group for a pilot. The USD 250,000 can be immediately applied to the Conceptual Study. The Feasibility and Conceptual studies make up a holistic Engineering Study which provides an accurate costing of all the equipment to be employed by the facility. 

We were very specific in identifying what financial entities that we desired to have a long-term sustainable partnership with. These financial bodies range from the provision of Grant funding to Debt & Equity financing. They must holistically embody our ideals for the utilization of renewable energy power generation, utilization of energy efficient technologies, practice energy conservation & champion the 4R’s (Refuse, Reduce, Reuse and Recycle).

The IDB also has a plethora of global strategic partners from management of operations, financial consultants, market data analysis, access to government and private sector stakeholder involvement legal, etc. that we can leverage on to ensure the sustainable viability of our operations.

We are utilizing a Project Financing model. SMCL becomes the Sponsor company and Caribbean Plastics Recycling Limited shall be a project company or Special Purpose Vehicle (SPV). We would like to partner with NGOs and Material Recovery Facilities owners / operators in LAC for a sustained supply of post-consumer baled PET plastics. The quality of the baled PET plastic must match that of the specifications provided by the Association of Plastic Recyclers (APR). 

We would also like to partner with Food and Beverage packaging manufacturers such as ALPLA and PET Plastics for them to become off-take buyers of our rPET resins. Indorama Ventures are global manufacturers of both virgin and recycled PET resins and because of their experience they are ideal partners for an Operations and Maintenance Contract. We would like to partner with The Coca-Cola Company, Nestle Waters, PepsiCo, Unilever and Danone. We desire (one or two) of them to be an Equity Investor/s in the proposed facility.