Mark Cuban, North Carolina, Raleigh discussed on We Study Billionaires - The Investors Podcast
You got a magic machine and you can put this in here and get that. We built a precedent and we built it at scale. Also what you would see if you came to. prt is. I've got six forty foot cylinders and they rotate on an access point. They're all independent. So one of the things that i didn't like about massive industrial complexes they're all connected you've got like conveyor belts feeding into that and this and then it goes here and then that has to go onto here but if any of those systems breaks the whole plant goes down so i wanted to make sure that we had something called like a continuous batch system. That was modular is now. You're getting into lean six sigma types of your speaking a language. I don't know. I did the same thing with a hospital. Emergency room right. I said this thing is big and inefficient. Yeah are unhappy. Let's make it small. And and you know kind of tactically more replicate available and usable and so we took these systems these cylinders each one of them had its own programmable logic controller worked independent of the other systems. So there's some redundancy you had this forty foot chamber. You had an oil processing and containment system behind it then you have an emergency flare behind it. The cylinder rotates forward. You loaded with about three hundred whole tires. And that's really novel because no one had ever produced one of these tire disposal systems where you had no preparation of a tire. You could just take a dirty tire and throw it in my machine so you put three hundred tires in the machine. The machine then gets back into a vertical position. It's all done by computer. And then live closes on top of it. It informs a seal. We put a vacuum pump or some pressure and we we evacuate the atmosphere out of that vessel so all you have is tires and were. We pulled out the atmosphere. I insert a torch into the bottom of this giant cylinder. And you've got all the tires randomly inside of it. And i blast it with this torch and create like a coke layer. So it's not on fire. I'm blasting those tires with this torch for twenty minutes and creating kohl's like hot coals at the bottom. The cylinder is actually there's thermal concrete and some other really cool technologies in it but it's essence. It's just a green egg so after twenty minutes. Pull the torch out closed that port. And then i start to drag oxygen or atmosphere back over those hot coals. So there's no additional fuels there's no catalyst there's no other energy. I've spent twenty minutes of of some type of gas to create hot coals. Dragging atmosphere over that with vacuum pumps that becomes super hot at the base. Imagine blowing on coal against red hot. A tire is forty percent oil. It's got carbon steel kevlar. It's got a lot of things in it. That are volatile in terms of the synthetic polymer. That heat is monitored with about eighty different sensors up the stack of tires and up. This forty foot container is so are measuring the temperature differences up the staff and i over a eleven our process. Moving those tires down to this hotspot just using gravity and turning them from a semi solid to a gas not lighting them on fire. I'm heating them. And they turn into a gas. And then i'm pulling that vapor stream off at a certain temperature. It's around three hundred. Fifty two four hundred see and i'm pulling that vapor stream ost and collecting and cooling a fuel and that fuel is like a bunker fuel when i say bunker fuel that in a high sulphur fuel that you would use ship once it gets into international waters the vapor stream that i can't condense into into an oil and gas so it's all the butane propane 's methane. It's got a lot of the different combustible components. I can pull that in scrub it and combusted in terms of energy as well. So i've got liquid-fuel. I've got a gas stream and then after eleven hours i'm left with a carbon. That's like mid grade appalachian coal. So it's a solid feel and then steal. There's a fair amount of steel and a tire dump that out after eleven hours. I shake off the carbon. I sell the steel. They just come pick it up and give me scrap steel price. I use the solid fuels. Or i sell them into the solid fuel market to create power. I use these the oil either. Sell it into the blended fuels market or use it for our own energy use and the gaseous fuel. I use the vapor stream. I use for power as well. All of those things. I when i first endeavored to monetize them i thought i would just produce power for the grid but that led me to cryptocurrency mining. You know there's a whole nother track or discussion. That's kind of the story of pr ti in its evolution to that point where i had at scale taking care of ten percent of all the waste tires in north carolina so we have twelve million waste tires year. We were taking care of one point. Two million of those tires ourselves and i had a replicable model that could exist in certain environments. That would allow us permiting. Wow that is crazy okay. So let's talk about the transition to the crypto currency piece. Oh you're doing all these things you're doing these things successfully and how did you come across. Crypto currency is being another opportunity to leverage with the energy. Yeah so i had said to you. I was doing some early stage. Investing and one of the investments i had done is in technology that had made a claim i was a nail polish that could detect date rape drugs. It came out of. Nc state university. The claim was that a young woman or man could put this nail polish on dip it in their drink and detect six typical date rape drugs. I had invested in that company early. And we're working with the founders to perfect it. Mark cuban had invested in that as well a friend of mine and by no at this point friend of anthony's poblano had had said. Hey this guy named palm is leaving snapchat moving back to raleigh. You need to meet with him. Like i think you guys would get along. Well he put us in contact. This is like two thousand fifteen two thousand sixteen and we set up to meet in downtown raleigh for thirty minutes. We ended up staying for two and a half hours. It's like you meet someone and you usually. Yeah yeah it's like us talking right now. It's an easy we immediately said. We gotta do something together and what we did was we developed a concept for full tilt capital which was going to professionalize friends and family investing and we raised. I don't know about three and a half million dollars to go into early. Stage stuff being put it into like sixty different companies and then we had another maybe fifteen million bucks that we put into late. Stage stuff spacex reddit. Airbnb lift like a lot of cool stuff and man. We were deploying capital. We're kind of local heroes in terms of like the early stage venture stuff getting to know each other and then recognize that. There was a lot of.