Joint venture initially will handle 50 tons of shingles per hour.
Freedom Energy Holdings Inc., Fort Wayne, Ind., has entered into a joint venture agreement with Phoenix-based Central State Shingle Recycling (CSSR) to provide CSSR with its asphalt shingle recycling technology SR-139.
During the last 12-month period CSSR has accumulated more than 1 million tons of post-consumer shingles at its Phoenix location.
Under terms of the agreement, Freedom Energy will receive a royalty of $0.25 per gallon of the SR-139 required to process the asphalt shingles. Initial expectations are for the processing of 50 tons of shingles per hour, which will require around 1,000 gallons of SR-139 per hour.
Additionally, CSSR has agreed to invest $700,000 in equipment required to complete the program. Joint venture operations will start at CSSR’s Phoenix recycling center and is anticipated to be fully operational in the first quarter of 2012.
Brian Kistler, CEO of Freedom Energy Holdings, says, “This is an extraordinary opportunity for Freedom. Not only will it provide a steady stream of reoccurring revenue, but also opens a new multi-billion dollar market and brings credibility to the effectiveness of our technology. There has been a great deal of effort and capital invested in the development of SR-139. To put things into perspective, if all of the 11 million tons of shingles disposed of each year in the U.S. were captured and recycled with SR-139, it would take in excess of 200 million gallons of SR-139 and would produce in excess of 2 billion gallons of the valuable high quality burner fuel previously announced."
CSSR’s co-founders, Scott Yelton, president, and Eric Hennen, COO, add, "We truly are on the cutting edge of a new market. With just the shingle aggregate in Phoenix, we plan to scale up to processing 500 tons per hour by the end of 2012. In the greater Phoenix market there is estimated over 400,000 homes to be re-roofed from the damage the hail storm caused last year. We anticipate receiving an additional 1 million tons of shingles so the timing of our agreement with Freedom could not have been better planned."
In addition to their Phoenix location, CSSR began operations in Texas in July 2011. CSSR also performs commercial services on a contract basis, ranging from private stock pile shredding to custom wood grinding and shredding including dye applications.