Plastic Gold: One Person’s Trash Is Another’s Treasure; Tackling The Plastic Dilemma With Blockchain
The world’s plastic waste reached 6.3 Billion metric ton 3 years ago. To put this into perspective this is the weight of 21 million (yes million) Boeing 747s combined.
So what’s the effect of all this plastic waste? Along with killing 1 million seabirds and 100,000 marine mammals each year, plastic waste also has other effects too. The poisonous chemicals from plastic gets into our bodies through our water supply, seepage from landfill and animals that we consume. If that wasn’t enough, researchers recently estimated that plastic waste is costing the world around 13 billion dollars every year in cleaning, coastal activities, marine farming and tourism.
With our oceans and lands getting more toxic day by day, people are looking for new solutions that can tackle the plastic waste problem at its core. A way to make plastic disappear.
There is an emerging industry made up of mission-driven companies that are pursuing sustainable and scalable solutions to our plastic crisis. This little known industry coined “Waste to Energy”, stands to see enormous economic growth given the proper technological developments. What people don’t know about plastic waste is that it’s incredibly energy-rich (after all, plastic is derived from oil), and given the right processes, the majority of this energy can be reclaimed to create massive economic incentives to clean our planet.
6.3 billion tons of plastic is littered across our globe but for a company called Leinad, this is a gold mine. Leinad is a cutting-edge waste to energy Technology Company, specifically focusing on pyrolysis solutions.
Leinad has developed a major technological breakthrough. Utilizing an old scientific process, with new innovations they have already started to shine through with an early mover advantage in the “Waste to Energy” sector. Using a process known as pyrolysis Leinad can produce valuable economic resources from plastics, tires, and municipal waste and in an environmentally conscious way. With next to zero emissions their proprietary systems can produce clean water, Euro 6 grade diesel, Syngas, and many other commercial products. What is most important is that 100% of their systems output can be utilized, and there is 0 waste, from a source where there was only waste.
Leinad’s highly efficient proprietary system is able to convert everyday plastic waste such as plastic water bottles or grocery bags into a life essential fuel substitute. On top of generating and selling electricity along with the other byproducts captured by their intellectual property, Leinad holds all the necessary secondary agreements with a regional Spanish government authority to deploy and implement their flagship system in Q2 2019.
Having an agreement in place with regional and local authorities entitles Leinad to a minimum of 300,000 tons of plastic waste every year for the next 5 years. What’s more is the company has negotiated the various agreements to sell the electricity they generate and to commercialize all of the by-products forged from its pyrolysis system. With over 40% of the plastic waste plants located within Europe, Leinad identifies that its strong position with the Spanish government will become a valuable leverage point when organically breaking into the other economies of Europe. Albeit our plastic waste crisis spans the globe, and so Leinad has already received a soft pledge to license their technology from a South American national government.
You might be thinking this is a great idea on paper, but it’s much more than a pipedream.
Since starting the engineering and development in 2000, Leinad has tested their technology on trial size basis (MVP system) in South East Asia to prove its concept. With this prototype the company’s scientists and engineers successfully converted a wide range of waste types including plastics into the commercial products mentioned early in this article. In it’s Toronto office located smack in the center of the vibrant financial district, sits proudly the first batch of clean Diesel generated from the MVP system roughly 4 years ago. Armed with the lessons learned from the South East Asia prototype, and with the years of further testing, computational modeling and design optimization. The Leinad team has completed the ideal system its been after for nearly 2 decades. That is one which can be scaled up to meet the demands of a regional or national waste management effort, and that can be scaled down to electrically power and extract clean water for the most remote human inhabitants.
The team is derived from respected academic in Nuclear science CEO Alex Dementev (an accomplished physicist and chemist who worked on the Russian nuclear space program), President, Elliott Talbott (senior lead for Facebook’s aerospace project accompanied by a strong design and strategy committee of advisors.
In order to streamline their operation and costs Leinad’s using blockchain technology to launch a Security Token Offering, or STO.
Security Tokens allow anonymised ownership information to be stored on the blockchain and automate the transfers through smart contracts, thus reducing Leinad’s overhead costs and liability. Also, by easily identifying the people eligible for dividend payouts and automating the dividend process, Leinad hopes to speed up payments and reduce the chance of missed or non-entitled payments.
I spoke to Leinad’s president Elliott Talbott to get more detail into the world of plastic waste and his vision for Leinad.
Why did you decide to tackle this enormous challenge?
“Some problems are big and some have significant environmental impact, others are so vast with such huge impact that we really don’t know where to start nevermind how to solve them. Along with global vehicle emissions, waste plastic and waste, in general, is one of these problems, we’ve continued to use antiquated methods to deal with waste, such as burying or burning it. The human race has put people on the moon, sent probes to the outer reaches of our solar system but we still carry out the 5000-year-old ritual of burying our rubbish!!”
Talbott stresses that Leinad has looked at the economics of this problem/opportunity in the same way that private companies have looked at the space problem/opportunity, until a move into a sector becomes economically viable for them, cash strapped Governments are left to carry the burden. He states that for this to be viable, one requires innovation, thinking outside the box, embracing new technologies and utilizing them even in the face of uncertainty.
“Leinad’s technology is just one part of the solution which is both sustainable and economical, we can’t handle the problem on our own but being an early player and helping to catalyze an industry around the waste should make tackling waste a long term goal for everyone.
Who are the current competitors in the space and how is Leinad different?
“Although Pyrolysis as a technology has been around for hundreds of years it’s economic viability has only recently been established due to the increase in social pressure to find alternatives to landfill and incineration. Companies are coming to the realization that waste plastics, tyres and contaminated waste are a freely available and abundant resource, rich in energy and essential industrial materials. There are”competing” companies that are building or operating systems, however, the sheer magnitude of the problem (the weight of plastic waste in our environment is approx. equivalent to the weight of over 700,000 Eiffel Towers) leaves the space open to plenty of adopters and competition will push innovation forward”.
Talbott explains that there is an emerging solution that is coming into its own where in the past it experienced poor financing and little serious engineering attention, the new viability of the technology will see market leaders and early adopters flourish.
“What makes Leinad different, our focus on both input and output, the flexibility of our system to take a multitude of feedstocks and then output the most viable end products which require very little post-processing is pretty unique. Add to this our advances in reactor design and other proprietary innovations we feel our system is at the forefront of waste to energy technologies”, he adds.
What is your current progress on raising through STO and how do you see the STO ecosystem developing in the future?
“We are currently early on in our private raise, building out our data room for investor due diligence and ensuring we have “ticked” all the compliance boxes required to operate as a security. It’s incredibly exciting merging two bleeding edge technologies, we’re attempting to show that blockchain is not just about big bullshy protocols, it has real business application, reducing overheads, automating processes, making transparency a core attribute and reducing the level of personal data held. All of these attributes see a potential reduction of near $400,000 pa of associated PLC operating fee’s, that’s a big saving for small companies in every market not just blockchain companies”.
What is the current roadmap for Leinad and how soon can you begin making revenue?
“We have the engineering team on standby to build the first full-scale system, we have the land agreements, we have the feedstock (the name for the plastic in its delivered form) and we have the offtake agreements. Should our fundraiser go to plan by February we will have instructed our manufacturing partner to begin building the first processing module with expected delivery to site in June and commissioning completed in July. We will begin generating revenue in June as we begin to stockpile plastic bails ready for processing with an envisaged initial dividend payment by the end of September. The system will then scale monthly up to its full 15 modules, able to handle 300 tons of feedstock per day”.
What gets you excited about Leinad’s future?
“What doesn’t is probably easier to answer!! The size of this opportunity is unimaginable but keeping grounded, though cliché, is incredibly important, the larger the problem the bigger the solution required. One of the most exciting elements of Leinad’s future will come after the first system is proven, then the serious expansion and subsequent impact will be felt. At Facebook there were these mantras plastered everywhere; “focus on impact” and “move fast & build things”, I think they stand true for any business but Leinad really has both of these as fundamental building blocks of its core.
Leinad’s system has the potential for huge impact on various global markets, according to Talbott. Their modularity allows them to expand rapidly; “we’ve got the “build things” in the bag”.
Leinad’s future is directly tied to that of their plant, the ability to build a circular economy which not only solves a pandemic issue but also reduces the need for natural resource exploitation, all in a sustainable manner, is surely the most exciting future any company could have, Talbott concludes.
I am an established journalist with over 15 years of experience in politics, economy and sports journalism. I have now specialized in crypto and blockchain and have taken on several high profile jobs in this space.
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