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GreenCycle
Backround
GreenCycle Incorporated, Northfield,
Illinois, was formed early in 1992 for the purpose of providing recycling
services for yard waste, grass, brush, clean wood and leaves to municipalities,
landscape contractors, homeowners, and trash haulers. Composting is an environmentally
sound alternative to landfill disposal of organic waste, and more than half
the states in the United States have recognized the necessity for using
final disposal space sparingly by banning yard waste from landfills and
establishing recycling goals for their communities. Like landfills, GreenCycle
charges a fee for accepting material at its sites.
While the amount of yard waste produced varies by geographical location,
it constitutes approximately 20% of all solid waste produced in the United
States. As governmental bodies contemplate controls to assure that what
can be recycled is recycled, it should be kept in mind that a larger,
quicker environmental contribution can be made by first recycling those
materials which represent the largest portion of total volume. Plastic,
for example, represents less than 5% of the total solid waste stream,
and it presents many more recycling difficulties than does yard waste.
Compost is a nutrient-rich material used for restoring the lost organic
and microbial content of over-worked soil. Since material must be put
to useful applications if it is to be truly recycled, GreenCycle
has, in parallel with the development of its composting techniques, developed
programs for marketing the finished products to home gardeners, landscape
contractors, golf courses, professional growers, and parks and highway
departments.
Brief History
Recycling Laws Approximately 1990, because of the increasing difficulty
of finding and permitting sites for landfills, states began taking steps
to relieve the pressure on landfills to accept materials that could be
diverted by recycling. Because approximately 20% of the solid waste stream
consists of yard waste, composting these materials was, correctly, perceived
as the quickest way to contribute to the reduction in landfill disposal
volume, and by 1995 25 states had passed laws limiting or banning yard
waste from landfills. GreenCycle's
First Project -- In 1992 the City of Indianapolis requested bids from
companies interested in composting the fall leaves picked up by City trucks.
The principals of GreenCycle had been
researching composting as a business for about six months, and they felt
prepared to bid on and perform the required work. The Company was then
incorporated, and it submitted the winning bid to Indianapolis. The City
of Indianapolis delivered 12,000 tons of leaves to GreenCycle's
south Indianapolis site that fall, and the material was composted. Most
finished compost was sold, but some was donated to the City for beautification
projects. Beginning in 1993 the City of Indianapolis insisted on delivering
yard waste to the selected composting contractor in plastic bags. Because
of the inevitable contamination of finished product this would cause,
and because of the litter problems associated with coping with large amounts
of plastic film, GreenCycle
elected not to accept the material in plastic bags, and it
began to seek other sources of organic material. The winning bidder on
the City of Indianapolis contract in 1993 proceeded to lose a great deal
of money because of the necessity to deal with the plastic contamination,
and he abandoned the composting business when his five-year contract was
up. Partnerships The formula which seemed to work in Indianapolis was
to find a local partner capable of operating such an activity, and to
split ownership 50-50. Soon after opening in Indianapolis, GreenCycle
identified potential partners in Boston, Hartford, Connecticut,
Atlanta and St. Louis, and it commenced business in those locations. While
GreenCycle was closely involved in
the operations in these cities, it was found that the lack of control
afforded by the partnership agreement resulted, in some cases, in poor
operations and, in others, disputes about how the business was to be operated.
GreenCycle's charter includes its
intent to operate only clean, neat, limited-odor sites, and it became
obvious that the partnership model did not allow the Company sufficient
control to assure that this was universally the case. By 1997 the company
had withdrawn from all partnerships, and it retains full ownership of
all sites in Connecticut and Indiana. Millburn Peat Company Early in the
development of the Company, it became apparent that marketing finished
product is as important a part of the business as acquiring tipping fees
from waste disposal. Not only is the additional revenue necessary for
viability, but a compost site which does not move as much material out
as it takes in develops into, as the Company principals describe it, an
above-ground landfill. Among the many thoughts the Company pursued to
develop marketing techniques was that of bagging compost for sale through
retail outlets. In 1993, the owners of GreenCycle
acquired 25% of Millburn Peat Company of LaPorte, Indiana. The purpose
was for GreenCycle to learn about
the economics of selling bagged organic products and, eventually, to add
compost to Millburn's product line. What management of GreenCycle
learned over the next seven years was that compost can be sold in bulk
for several times the price that an organics bagging company can afford
to pay for raw material. In the year 2000, GreenCycle's
25% of Millburn was sold to the remaining management group for a
substantial profit. Some municipalities have been successful in operating
composting facilities, while many have not.
Marketing -With a very few notable exceptions, municipal composting
projects have run into difficulty when they have attempted to dispose
of finished product for applications which truly constitute recycling.
Empirical evidence suggests that municipal personnel have neither the
time nor the inclination to acquaint themselves with the needs of horticultural
markets and to actively solicit business from those markets. GreenCycle
has personnel dedicated to developing markets for enriched soil products
and mulches to professional growers and home gardeners. In order to ensure
the quality of its finished products GreenCycle
has strict standards regarding the nature of its composting feed stocks.
In addition to yard waste, GreenCycle
currently composts vegetable waste from companies which make packaged
salads, soiled horse bedding from racetracks, and organic residuals from
food processing and from the manufacture of industrial products. GreenCycle
does not accept biosolids or materials containing heavy metals or other
contaminants.
Current Operations -At the present time, the company has two operating
companies which process, blend and market organic materials throughout
the east and Midwest. The following pages include a description of each.
Also included are brief resumes of key GreenCycle
personnel in order to demonstrate the depth of experience
the company can bring to bear on most organic waste recycling problems.
GreenCycle of the Northeast operates
composting facilities for recycling yard waste and clean wood waste in
the Connecticut cities of Wallingford, Milford, Ellington, and West Hartford.
The company also processes material on municipal sites under contract
with Bradford, Bristol and Windsor Locks. Its products include compost,
enriched topsoil, specialized growing mixes for greenhouses and nurseries,
and earth-tone-dyed mulches that hold their color for a season or more.
The company expects to recycle well over 100,000 cubic yards of organic
material during 2002. GreenCycle of
Indiana Currently, in addition to composting yard waste from the Indiana
cities of Speedway and Zionsville, GreenCycle
of Indiana sites in Indianapolis and Whitestown (a northwestern suburb
of Indianapolis), accept soiled horse bedding from racetracks and fairgrounds,
pre-consumer food waste, and clean wood from land clearing operations.
Nevertheless, the Company's broad customer base consists of independent
landscape contractors, lawn services, tree services, and land clearing
operations. The Indianapolis sites also accept pallets from large companies
seeking to get rid of them and pallet scraps from companies whose business
is the repair and resale of pallets. These pallets, along with tree trimmings,
brush and clean wood, are ground up and made into several types of mulch
including a playground mulch which has been certified by an independent
laboratory as being of value in reducing playground injuries. Some mulches
are colored with organic dyes to keep their attractive appearance for
a season or more. This mulch business has become a major source of GreenCycle
revenue.
In 1996 the company received approval from the Indiana Department of Environmental
Management (IDEM) to conduct a test the object of which was to determine
if it was safe to recycle the plant material used by Dow AgroSciences,
a major agricultural chemical company, to test new chemical products for
the control of plant diseases and insects. Because of the possible toxicity
of the test material, a completely isolated and covered windrow was devised
for the test. After a year of operation, it was proven that the heat and
microbial activity generated by the composting process completely eliminated
all traces of the potentially-toxic chemicals, and the company was authorized
to continue without isolating the material. This project has saved Dow
AgroSciences significant disposal cost in addition to saving significant
landfill space. In 1998, part of the Indianapolis site was operating under
an experimental permit from IDEM. This permit allowed GreenCycle
to compostthe corn sludge left after 65,000 bushels of corn per day are
processed into starches and sweeteners. Recycling this material keeps
thousands of tons of recyclable material per year from taking up room
in landfills, and saves the A. E Staley Manufacturing Company a significant
amount of money as compared to the cost of landfill disposal. A permanent
permit was granted after the test period.
GreenCycle of Indiana's two sites
diverted approximately 140,000 cubic yards of material from landfills
in 2001. Except for about 2% "overs" all of this material was
processed and sold in 2001 and 2002.
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