What do eighty Dutch at an address in Sladkovicovo, a village in Slovakia? They are all registered at this address since May 2013 as shareholders of Carbon Green Renewables, a company in the British Virgin Islands which is said to focus on the recycling of tires. More can Trouw and Het Financieele Dagblad not found initially in Panama Papers, the leaked records of legal services Mossack Fonseca.
However, in the examination of the names slowly develops a pattern, a network that unfolds. Individuals from Groningen, Twente and Drenthe prove since 2005 to have been a shareholder of precursors of Carbon Green. For more than ten years, these people are part of a project to recycle revolutionary car tires. After an investment of $ 75 million, but their rest is nothing more than a factory than in Cyprus in operation. Some are done with it, others still hope to recover (part of) their investment.
Extreme heat
The story begins in 2005 as a former tax consultant Wim Kemperink relatives, neighbors, acquaintances and former schoolmates approaches with a beautiful project. “I had not seen him for decades,” says a former village enjoyed Kemperink from the Overijssel Zenderen. “Suddenly he stood at the door with a trunk full of leaves.” These leaflets describe an investment project for the processing of old tires, using a technique that is pursued for years
Via pyrolysis – extreme heating without oxygen, so that no combustion takes place – the tires are actually divided into a number of materials. These are mainly carbon black, where a substance of new tires can be made but that is also suitable for paint and other applications. Normally, this substance is obtained from mineral oil which is an energy-intensive process. Through reuse is achieved considerable energy savings.
In his surroundings Kemperink convinces friends to invest in the project. And these investors drills turn to their network again to convince other investors. More than 150 Dutch steps between 2005 and 2008 in this project. It’s not just about efficiency, but also the environment will benefit from it, we are told them.
NASA engineer with ambition
the project will be the man the US company CBp Carbon Industries. The driving force behind this is the American inventor John Fader. The technician worked for Nasa space agency and submitted patents in their own words for the first time establish a commercially viable form of pyrolysis of tires. But Fader has no understanding of the marketing of his ideas. That should do John Novak, a Canadian with Slovakian roots.
To plan a reality requires money, lots of money. Discussions with from the very beginning investors is clear that this is the task of Wim Kemperink. According to one of the investors know Kemperink Novak and another from Slovakia. Kemperink, former Managing Director of Friesland Bank works in 2005 Regge Huys / Central Europe Group and MEI, a provider of investment funds in Central and Eastern Europe. In that capacity he was frequently in that region. In late 2005, shortly after he had taken on board through a first round of Dutch investors CBp, Kemperink stops his job and the chief financial officer of CBp Carbon Industries. He stays until May 2008.
Kemperink proves the perfect man for raising funds, with his professional background and his great social network. From this network, he has estimated more than $ 30 mln. But he is not alone. Mike also Kranenburg of Amsterdam Go Capital hedge fund is involved early in the project. Go Capital in those years a very successful hedge fund that worldwide attention with good returns. The fund puts more than $ 35 million in CBp.
Double doors
The first real achievement of CBp Carbon has a pilot plant, in Hungary. Which was completed in 2007 and a group of investors pulling together with Kemperink and Kranenburg to. That factory was, say several investors, and that story is confirmed by John Fader, the man of the art.
Later that year he stand and Wim Kemperink still together in the Belgian newspaper Het Belang van Limburg. The ambitions are high at this time, there are plans for 24 locations in Europe, America and Australia. Work is underway to listings in Frankfurt, Oslo, Sydney and Dubai. “Why Dubai? Just because there’s a lot of money, “says Kemperink against the Belgian newspaper.
But those ambitions come to nothing. The factory closed down in Hungary and rebuilt in Cyprus. There, too, a delegation of investors go by, but is not impressed. “It was apparent in the start-up phase,” said one of those present. “It would not surprise me if they had ignited some wood coals to get smoke out of that pipe.”
Fader, founder of CBp carbon, still says he does not understand why the plant had to Cyprus. Early 2009 he left the company with French doors. He blames his business partner Novak that, despite investments of at least $ 60 million, the technology is still not successfully rolled out. In fact, the money seems largely disappeared. The patents Fader no longer possesses, he has already been sold to CBp.
According to the latest quarterly report of CBp Carbon Industries, which stands listed on the New York private equity market, there is the end of 2009 are $ 1.5 million in cash from the since 2005 invested $ 75 million. the plant represents $ 11 million in the books, the rest is spent on consultant and and management costs . The company then disappears from the radar.
A new opportunity
Maar Novak continues with the technology. Through IPOs and mergers and acquisitions still pop companies that want to market the technology under the name Carbon Green.
reported in 2010 Novak the New York Times that $ 75 million has been raised to management and investors and that the aim is to set up 17 plants in the next five years. A year later, Carbon Green through a share swap part of Hunt Global Resources. Hunt is an American company that has rights to the exploitation of sandy soils in the state of Texas. Investors Wedding and FD spoken assume virtually all from the hunt that sand will be used for the extraction of shale oil. The relationship with tire recycling is not clear to everyone.
The Dutch investors including Go Capital in exchange for their Carbon-interest shares and warrants Hunt. However, the patents and licenses for the recycling of car tires are in the acquisition valued at $ 139 million.
The Dutch allowed their shares only after three years of hand. Some investors have full confidence in and buy shares at Hunt. “On paper was the first time very well. But hey, as long as you can not sell you nothing about it, “says one investor over that period.
British Virgin Islands
But it is not long before things go wrong. Hunt wants to six months after purchase already from Carbon Green. The company needs money to purchase additional sandy soils. Hunt also expects much more of Carbon Green and wrote off $ 115 million in licensing and intellectual property. In 2012, the board of Hunt steps and collapsed into the stock. Go Capital never heard anything from the company and appreciates the importance of mid-2012 to zero.
The Dutch investors realize their investment to be lost. But then log John Novak at them, saying that he’s patents, licenses and plant for recycling tires purchased by Hunt. $ 3.5 million he paid
Novak late by Mossack Fonseca set up a company in the British Virgin Islands. Carbon Green Renewables . That company will own the patents and the factory in Cyprus. He approaches the Dutch investors to invest in this company. Thus they keep the chance alive to still earn something on the project, even though they have lost their initial investment. A large proportion of them goes on in: eighty investors put together another about $ 800,000 on the table. Others feel cheated and focus in 2013 the Foundation Carbon Claim on trying to recover the damages.
Go Capital is also the opportunity to join Novak. The hedge fund, however, is why since 2008 in liquidation and does not be able to participate. The Fund Manager sets the annual report that it seems impossible that anything could ever come out of the CBp / Hunt-investment in the future.
Keep hope
Some investors Carbon Green Renewables are still confident, though they are waiting for more than ten years to a conclusion. Novak them informed in a newsletter last month of a possible sale of the company. He sees opportunities to process medical waste through some adjustments in the factory in Cyprus. The fact that Wim Kemperink still playing gives confidence. “What gives me peace: his close family and friends are also heavily in”, says an investor
Other investors. less convinced. Annual reports or other numbers they have never seen. They feel kept in line by Novak. “We are 100% dependent on him. If he runs away, we have nothing at all, “says one investor. Another says: ‘CBp was a wonderful proposition. Nice way to get rid of tires. There would be especially money must be earned with the roll-out of licenses. CBp but is by no means the only one with this technique, there is a company in Limburg which does exactly the same. “
That’s right. Band Collector Kargro Nederweert builds a factory together with the Dutch company Black Bear. This year, the € 13 million should costing plant, co-financed by Rabobank and the Limburg Energy Fund, are operational. Promoters won there already an innovation.
There are great opportunities, also outside the Netherlands. Last week Lopes Cardozo Black Bear told the FD “If we want to be successful, we must rapidly internationally upshift. There are plenty of car tires worldwide to more than eight hundred of such plants to build “About 250 kilometers north watch some of Groningen and Twente there with very different eyes
Aan this article cooperated Siem Eikelenboom (FD), Gaby de Groot (FD), Jan Kleinnijenhuis (Wedding) and Karlijn Kuijpers (Wedding).
Responsibility
De basis for this article is the list of shareholders of Carbon Green Renewables in the Panama Papers, the administration of the Panamanian legal service Mossack Fonseca sits. Het Financieele Dagblad and Trouw have spoken with a dozen Dutch investors CBp Carbon Industries and Carbon Green Renewables. They are not mentioned by name on request. Stichting Carbon Claim, fighting for aggrieved investors CBp Carbon Industries, would not comment on questions of both papers. Go Capital hedge fund has to give no comment policy on investments in the past. Wim Kemperink and John Novak would not comment.
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