We will begin our next presentation. Please welcome to the stage CEO and Co-Founder of Aduro Clean Technologies, Ofer Vicus.
Thank you very much. Hi everyone, good afternoon. Thank you for having me. My name is Ofer. I'm the CEO and co-founder of Aduro Clean Technologies. I did this journey with my partner in crime. His name is Marc Trygstad. . He's the main guy who actually invented the technology. In the next 25 minutes, I'll do my best to give you, tell you a little bit about the company, the opportunity, the technology. I'll try my best to show you why it is so unique in this market and later what is the opportunity and how we're going to get there. Basically, we are a public company. In 2021, it becomes our first time CSE in the market. In November 7 last year, we've been app listed to the NASDAQ. We call ourselves a chemical technology platform.
The reason being is that somewhere in 20, actually 2009, but in 2021 we conceived the company. We discovered a phenomenon that is very, very unique. Where under our conditions, basically we can break down molecules in a very certain way, very specific way. To that time, doing upgrading to heavy oil or chemical recycling or anything out there in this market requires a lot of heat. Basically, when you use just heat, there are penalties to do so. What we discovered is that phenomenon under our conditions, the metals that were associated and already embedded in the heavy oil act as a catalyst to do very, very specific chemistry. This was underlined for many years and undiscovered actually. Later, we discovered that if you add a little bit of material such as glycerol or ethanol or methanol, basically now you don't need to do hydrogenation.
Most of the organization in our space, we are mainly in the chemical recycling space. We're dealing with waste plastic. We have other applications. Most of our organization in our name requires molecular hydrogen. We do not. Now suddenly you have a small cheap process that on one hand has very cheap catalysts to work in, in a place where chemistry for many, many years was undiscovered and doesn't require any molecular hydrogen. That's a big thing in our market. Now you can turn it into different applications. Those are the applications that you see. We basically have accessible market to the heavy oil industry. It requires a lot of blending. Heavy oil is this crude that requires a lot of resources to be extracted and even transported. It needs a blending. We're saving a lot of those blending.
We have strong ties and basically in my mind, we're actually now becoming a household name to potentially replace an approach called pyrolysis. Basically, it's the next generation, but we'll talk about that. We have other applications that we haven't even touched yet. This is why we call it a chemical technology platform because it has different usage. I'll speak from now a little bit about just chemical recycling. It's the one thing that we've been talking and doing in the last few years really intensively. We basically caught the market by surprise in April 2021, when we came up and became public. Before that, there was no social footprint to Aduro . You would not have any reason to understand that we even exist. For since 2011, no website, no social media, no footprint, nothing. We did all research in-house. Basically, this is where we came from.
Over the years, the main approach for chemical recycling is basically pyrolysis. You may hear the name or not. It's basically a, let's say, heat-motivated approach to break long and heavy hydrocarbons that constitute heavy oil, I'll say plastic, renewable oil, robotized. They're all material that needs to be breaking apart one way or the other in order to become a little bit more, you know, with a higher value. The companies that you see here are very large organizations. Let's see if this is working. This is Dow Chemical. This is SABIC. Quantafuel used to be associated a lot with BASF. Honeywell, I'm sure you're hearing about. Those guys are very much limited in the chemistry that they're doing, which enforced them to do centralized large location. Basically, we're talking about the first approach to recycling. Plastic recycling is mechanical recycling.
You try to do the minimum and get the maximum. Basically, you clean your material, you run with it, you do something with it. Next approach is everything that is rejected goes to chemical recycling. This is where we are. The guys that you see here, you know, more or less working on what we call 10% of polyolefin. Sorry, 90% polyolefin, 10% contamination, which effectively means they're taking the best of the best. They're fighting for the best of the best material. Everything below that, let's say 85%, 80%, 75%, they don't touch. Because of that, they have those limitations. That's created this centralized location. They're basically taking on cities in order to centralize large organizations that need to take on a lot of material. Chemolysis, basically, the approach that we have developed is operating in a lower temperature mode. We actually use less energy.
We have higher tolerance to contamination. We have higher yield, and the yield that we're using, the oil that we're creating doesn't need hydrogen. Just imagine those guys that are basically, and there are some smart, good companies there, don't get me wrong here, but they're forced to work with certain value of feedstock because they're taking the best of the best. After they finish their working, they need hydrogen. That is another capital-intensive environment where they need to work in and to invest because they need some access to this hydrogen. For us, if we are having a little bit more tolerance to contamination, we do not need hydrogen, and we take lower value material. We have a little bit more leeway to work around this. This is where we are coming, and this is basically the essence of Aduro.
All those guys that I showed you are basically controlled or hold on to 1% of the market. The mechanical recycling that I showed you is basically about 9% of the market. This is out of 400 million tons of material that society produces every year. This is beyond the billions of dollars that are, billions of tons that are already available in the ground, in the water, whatever you get. Aduro in concept has this accessible market to this landfill, and this is where we see our ability, our potential. First of all, just to remind you, I showed you why the technology is quite unique. We don't need hydrogen. We are using very local, costly, not costly, cheap catalysts. We're able to break those molecules in a very selective way, and this no one is doing it right now in the market.
We can translate that to different applications in quite an advantageous way. We took all of our business models, all of those benefits, and embedded it in our business model basically. Because we could scale up rather than scale down, just to give you an idea of the size, the organization that I just presented, a normal operation would be around, a commercial operation would be around 100,000 tons a year. For Aduro, a commercial operation is 25,000 tons a year. We have this ability that if you have a large feedstock, okay, we'll give you four systems. If you have small feeds, small amounts of feedstock, they will never touch it. We have access to it. If we can access it, we have other ways to go to get it before it even ends up in the landfill. Now we have different ways to play with our business models.
That's how actually we are moving around. Just to show you a little bit about some information about the value cycle of plastic recycling, it starts from chemical manufacturing. Of course, we move to the designer, the retail. We are the consumer. We use it, we buy it, and then we trash it, right? Most of the organizations in our space are operating in one segment. They're building pilots or operations towards one sector. Aduro, because of this scale-up ability, because of the benefit in the technology, has this ability to operate across the value chain. In fact, we have organizations we're engaging with, several Fortune 500 that are now testing the technologies here. We see engagement on the retail side and even some engagement on the waste management. That gives us a lot of data. We basically see through the eyes of those customers how the market behaves.
Even those guys that are holding about 1% of the market, they are competitors, but we don't consider them as competitors, A, because we have those advantages, but B, because we have this ability to turn around to places that they will not be there. Simply saying, I don't need to fight with Honeywell, the turf that they are there. I can go somewhere else and make money and do value for society and for investors. This is just a slide that I want to share with you about how we're thinking about our process. This is basically a technology demonstration unit. 2025 is a super important year for us because we are building a pilot and we commit to this pilot. The pilot is, as we speak right now, it's being built. We took the approach of small to complex, meaning we are very much aggressively working towards revenue.
Because of our size and our ability to build small-scale units, we see applications that basically could generate quite rapidly immediate revenues while not building large-scale machines. I put around those the agricultural waste and synthetic turf waste, something that we all sit down in the grass there. All of this we could actually recycle and we are publishing information about it. If you think of it as very dedicated feedstock, it could be complex chemistry-wise, but it's not so dirty. For us, building machines that will be economical for that, we see definitely an avenue to do that. You move a little bit up to the scale to talk about industrial waste material, which could be, you know, food packaging that are sending tons and tons of cut waste plastic to the landfill. Very, very complex from a chemical perspective, still very, very clean.
We see that as an avenue and we're working to identify those. Then you have the worst of the worst. This is what the organization, the Fortune 500 organization, are interested in. This is the most complex, low-value approach. This is where sizes matter. Just to give you an idea, Shell basically announced that they want to do about 1 million tons of this every year by 2030. It's really, really hot. For us to take an opportunity and maybe get maybe 100,000 tons from them or 100,000 tons from somebody else, we're golden. We're very, very good. This is how we see ourselves. In a way, we plan ourselves to be tested by the guys like Shell for what we call a customer engagement program. We basically knew that technology is disruptive and we need to gain the trust of those organizations, those Fortune 500.
We build this program and we initiate this program already at the earliest of 2021 when we become public. Basically, it says that, you know, you first and foremost maybe will send some material to us and we'll do some testing and you would sit on the bench and, you know, I'll prove you that we're doing right. Out of this, maybe one or two of us will move into a collaboration phase where you're moving from the bench and you start spending more resources on us and you're working with us to customize your needs. For you, the investors, this is a message we really want to carry on because if you see that we have several of those and maybe one or two of those, I have better chances to go through my commercialization phase. Every year, this is what we do, folks.
We're spending our time increasing the value of the company by taking action items around the work that we need to do to make sure that we are securing the company. That is part of it, large deal that we're doing. We recently engaged TotalEnergies. TotalEnergies was a classic story. They came in as a technology evaluator. They increased their budget. They moved on. If you know nothing about the company and somebody like that company is doing some work for you, I'm hoping it tells something for you about when you do diligence the company. Once they felt comfortable, they increased it to a collaboration agreement. Our goal in every year is to bring one or two of those guys to the table. In terms of the commercial path, this is how we are thinking about it. First and foremost, we build a pilot.
We committed for the pilot to be ready by the end of October. It does actually, it's going to be commissioned very, very soon. It's actually the beginning of commissioning. It's going to run through 2026 and to different campaigns. This one is just a 10 kilogram per hour machine. We are already working very aggressively on the one ton per hour machine. We committed by 2025 to finish the design of it. We committed for several activities that will secure the lead time for this machine to be by early 2027, late 2026. Once we finish that, this is where you can basically cut and paste and do some commercial application. We are 90% licensing. We know the licensing will take some time because the guys, the likes of Shell or TotalEnergies, they would want to see how we are operating.
They would want to see those large machines operating. I just mentioned that we have also those small simple applications. For us, this is our build on operate. We see access to those simple applications where we can build on operate some of those. We definitely intend to materialize on those through this year. If you know nothing about the company and you need to monitor what we've been doing, which I'm hoping you will, then every year, as I promised and said, we are putting some milestones out there. This is part of the activity that we've promised to do in 2025. We're putting it out there. The first part is basically related to our 10 kilogram per hour machine. We wanted to start commissioning by September 2025. We did that. We are finishing the site preparation for it.
We've done all of the work in the background to make sure that this machine will be commissioned this year already. We are not stopping there. We are working already on the design of the next machine, the larger machine, the 10,000 tons. This is the ton per hour machine. We're working, and we announced those. We start looking for a site where this, you know, a home for this machine. We're committing to put some engineering companies that will lock themselves and help us work around this and buy long lead items. If you know nothing about the company, and you look at it in January, February, you should see some of those items executed. You would know through that that we are different than we have been today. That's what we're trying to provide.
I think with that, we gain a little bit of the trust of the investors. Thank you very much for considering us. Every year we made this progress. Every year we came with some goals to succeed. Every year we report on those goals. On basically November 7, we actually uplist. It was a great day for us. This is the chart. You can see it's very, very simple, no debt. The company is clean. No tools behind it for any financial tools. We haven't committed to anything. The company is zero debt. 38% inside ownership. With that, I'd like to say thank you very much just for listening to me. Basically, what you see here is what you get. There's no hidden thing. Very, very simple chart. Very much cashed up of the company at this point of time.
We manage our financing, I hope, and you know, quite good when we are looking at the money that we raise or the money that we need. We always come up ready and thinking ahead of the game. We don't need to come and ask for money when we actually need it. It's there when we have it. Right now, I mean, we have about $15 million in the bank, basically give and take. That is based on the last reports. Already committed $5 million for it to buy for the long lead item that we have coming to us in the future. I feel the company is in a very good position and ready to move on very aggressively on our 2026, which is super busy. 2025, very, very important year for us because of the pilot. Remember, we started this thing in 2011.
Now we're bringing a machine that is industrial look-alike, could be scaled up. 2026, we're not stopping there, is the year we're looking into the demo, not just building the pilot, but looking into the demo. Those things are the stuff that you as investors should look at us and consider. I didn't mention 10 patents that we're doing. Again, if you know nothing of the company, the fact that we came with those patents from 2011 until now, it's not a simple thing. The first patent that we are, you know, we discovered in our space is as early as 1930. I haven't spoken in this discussion about the environmental benefit. Basically, we're waiting for the pilot to come in. The environmental benefit of the technology is pretty large because if we can do smaller scale, we may save some transportation. We may save some sorting.
If we can do, you know, we have high tolerance for contamination. We may work with a little bit more material, so less emission. All of those things are adding up to a footprint that is very, very strong. However, the lifecycle assessment of this company will be published only after we build the pilot. The reason being is as much as we want to be, you know, glorified, we're waiting for the data to show. This is what we will show you guys. Thank you very much. I'll take questions for now. Yes, please.
I'm wondering about the more cash burn right now with the clear cut. As we progress more into the one-ton per hour machines and then we get to take that next stage, how much is that going to increase?
The current machine is already financed. We're done with that. We're burning about $750,000 a month. That's basically the future machine. We don't publish it, so I won't tell you how much it costs, but it doesn't cost so much, you know, to move from where we are to the bigger one. By the way, everything that I'm saying here is not fixed. In other words, if we see red lights that we need to do some research around, just remember there's no history to those things right now. We're developing something that was not there available. We will say that. So far, there's no red lights. It's just an ongoing process of optimization and feeling when the market will be, you know, acceptable to do those executions and then see how the market reacts to this and then move forward.
We're planning ourselves every, you know, ahead for a year, more or less, or two years' time.
Can I ask just a follow-up on that? Do you see any potential for things like grants or anything like that?
Non-dilutive cash, yes. There are plenty of grants around them. We've been active with some grants in Canada with federal grants. There were some issues with the grants, never mind. Yes, there are plenty of opportunities for grants, and we keep on working on them. We see a ratio basically one to three, generally speaking, when we're talking about grants. We prefer to run with the execution and maybe use it on our own investors' money or, you know, our money or your money rather than just hold on to the grant because the progression of the company, we don't want to stop the progression of the company. When it's possible, we bring grants. When it's not, we just, you know, stay away and keep on running. Yes, please.
A quick technical question. Do you guys produce what are called primary energy like heat or secondary energy like electricity? Do you develop projects or do you only sell your equipment?
Do we produce primary energy like heat or secondary energy like energy? We don't produce any of them. We actually consume energy such as electricity and gas, but we produce oil. That oil goes back to a large machine called a naphtha cracker where you can produce more plastic out of it. The circularity here, and thank you for actually mentioning it, I feel I didn't mention circularity here. The whole idea here is basically not to turn those waste plastic into some kind of a fuel. You don't do circularity, but actually create oil that could produce new plastic, basically. If you could do 10% of it, 15% of it, 20% of it, that means you're using less of whatever comes out of the ground. That's the philosophy, basically. Yes.
What are your CapEx needs, and how much have you already invested in the pilot now?
We allocated $5 million in the last round just to, and we will probably use that for the long lead items. I mean, we have things to do with that. Beyond that, I'll just stay reserved, but it's not, I can't say right now the number because we keep it quietly, but it's not very expensive at this point of time.
One-ton plan, how much is that?
The pilot was in the range of the millions, really.
The one-ton is 27 or what do you think that would be?
Premature to say right now, but good in terms, I can tell you about the ROIs and things that we do publish. We see ROI anywhere between five to seven years, which is unheard of in our industry. Just as an FYI, we publish this in the reports. The reason it's a little bit premature to talk about it is because if you're taking a simple system where you don't need any sorting, any washing, anything else, it's a different system compared to a very complex system. We're not there on the complex system. We're there on the simple system. We're trying to integrate all of that in some kind of a rational way. That's what we did last year, by the way. We didn't hide things, but we want to make sure that we know what we've been doing and how we're treating it. Anything else?
Any other questions?
Folks, thank you very much for having me.