Ventless Combustion & Energy Corporation (VC&E) began development of the patented CATCHER process technology in 1994. The word "CATCHER" is an acronym for "Advanced Commercial Technology for Carbon Halogen Environmental Recovery". It was invented to dispose of ozone depleting substances (ODS), halogenated hydrocarbon (halocarbon) chemicals used mainly as refrigerants and for fire suppression (halons). ODS were banned in 1988 by the Montreal Protocol Treaty.
Creators of the Montreal Protocol knew that eventually all the world's produced ODS would end up in the atmosphere but that banning production would finally heal the ozone holes. However, it was not known in the 1990s that ODS and its replacement, hydrofluorocarbon (HFC) are among the most powerful of all greenhouses gases (GHGs).
Since the peak of ODS production in 1990 until 2000, the amount of ODS removed from production was equivalent to 25 billion metric tons (MT) of carbon dioxide (CO2). Ozone holes are expected to finally disappear sometime after 2050. But HFCs are growing very fast especially in developing countries. According to the National Research Council leaking HFCs will equal ten billion MT of CO2 by 2050.
ODS can produce up to 10,000 times more global warming than CO2. VC&E began to recognize a new market emerging for the CATCHER not only for disposing ODS but also producing income by the disposal of CO2 equivalent (CO2e) greenhouse gas (GHG). Carbon credits are national and international attempts to reduce the growth of GHG. The carbon credit market is expected to reach more than $10 billion within the next few years and it already passed $700 million in 2008.
Development of the CATCHER Process for the US Army
The CATCHER process is proprietary and it is protected by current and pending US patents (see US patents 5,705,140 and 6,110,429). VC&E built and demonstrated the CATCHER IA process demonstration unit (PDU) in 1995. The CATCHER IA proved the feasibility of thermally decomposing ODS without any air emissions or waste.
In 1997 the CATCHER IB PDU was developed to process and dispose military chemical wastes containing halocarbons for the US Army. In order for the CATCHER IB to be operated and complete its testing program in 1999, it required a permit from the San Diego Air Pollution Control Board. VC&E was granted a Certificate of Exemption (COE) allowing the mobile CATCHER IB to operate indefinitely anywhere in San Diego County without the need for a costly and time-consuming approval process.
Future CATCHER Market
The current VC&E business model is based on taking advantage of an emerging market for CATCHER systems and services. This must occur at the present time because there will soon be a much greater need for halocarbon destruction facilities. The CATCHER being a transformation process does not require chemical destruction permitting. VC&E management believes the CATCHER systems could be built and put into operation much more quickly than by making modifications to existing halocarbon destruction facilities.
CATCHER systems are designed for use in the Ventless Gasification Combustion System (VGCS). It is an integral part of the Slagging Gasification Module (SGM). The market for use of CATCHER systems in the VGCS will increase as more and more urban communities begin to transform solid waste, sewage sludge and biomass into renewable liquid fuels. However, the market for ODS and HFC destruction may last only a few years depending on how vigorous governments react to climate change. It is unlikely that the companies operating existing chemical waste facilities would be willing to pay the high cost needed to increase their halocarbon destruction capacity.
Political and Legal Impetus for the CATCHER
President Barak Obama promised world leaders attending the Copenhagen Conference of the Kyoto Protocol the US will reduce its GHG emissions by 17 percent below the 2005 GHG emissions. He stated that by 2020 the US will reduce its GHG production by 7.1 billion metric tons (MT). In order to do that, the US will have to remove 120 million MT of GHG each year until the target of 1,200 million (or 1.2 billion) MT has been reached by 2020.
On December 7, 2009 the U.S. EPA officially declared that greenhouse gases are a threat to public health. This so-called "endangerment finding" is the result of a 10 year court battle ending in the Supreme Court that decided the Massachusetts vs. EPA case. The ruling put GHG, which includes HFCs along with CO2 under the Clean Air Act (CAA). That means the EPA is "now authorized and obligated to make reasonable efforts" to reduce greenhouse-gas emissions of all kinds. Mr. Obama has just thrown down the gauntlet - regardless of our political persuasions and opinion about the source of GHG, we must now accept that combating climate change has become a fact of life for every American.
The CATCHER: Targeting an Emerging Market
Reduction of GHG is now not only a law under Federal jurisdiction, it is also law in the State of California - known to lead the other 49 states in environmental protection ("so goes California, so goes the Nation"). Beginning on January 1, 2010 California will enforce AB-32 that bans operation of leaking motor vehicle air conditioning systems (MVACS).
The EPA issued an order in October effective December 31, 2009 requiring all large emitters of GHG to report their emissions. Furthermore, the Waxman-Markey Cap-and Trade Bill, now called the American Clean Energy and Security Act of 2009 (ACES) was approved by the House on June 26, 2009. When The ACES passes the Senate (expected in 2010) it will allow President Obama's programs under the EPA to work more efficiently.
Regardless of the outcome, the EPA is expected to begin using their own version of cap-and-trade schemes to reduce global warming. The EPA has used a form of cap-and-trade for decades to control other atmospheric pollutants. What all this means is that an economically sustainable market for the CATCHER has finally opened up.
CFC Exchange LLC (CFCX) Formed to Generate Carbon Credits
VC&E created CFC Exchange LLC (CFCX) as a separate company to finance, own, operate and maintain CATCHER systems. CFCX will use the CATCHER systems primarily to exchange and dispose ODS and HFCs and to generate income from carbon credits.
There is required methodology (protocol) for awarding verified carbon credits that must be followed. The EPA and other stakeholders including VC&E have participated in writing the protocol developed by Climate Action Reserve in Los Angeles.
When the carbon credit markets in the US begin to accept ODS disposal in 2010, there is expected to be bottlenecks at currently operating ODS incinerator facilities. A strong market for CFCX services is expected. When that occurs ODS disposal must be completed on schedule. The result could attract carbon-credit project planners to CFCX in planning strategies to dispose ODS and eventually HFCs. The expected effect will be a rapid increase in the market for CATCHER systems and services.
