47. Panelshake - Recycled Plastic - Natural Fiber Composite Roofing Panels
One billion barrels/yr of oil are used to make the 8 billion lbs/yr of asphalt used in asphalt roofing shingles in the US. In addition to being non-sustainable, asphalt roofing is difficult to recycle, contaminates rainwater, produces toxic smoke when burned, has very low insulation value and has limited durability (about 25 years typically).
In the Western US and California especially, restrictive fire codes limit the installation of Cedar Shakes. Relatively low-cost Cedar Shakes and shingles that were once the predominant roofing type in California are typically being replaced by low-cost asphalt shingles.
Low-cost recycled high-density polyethylene (#2) bottles and agricultural natural fiber byproducts are readily available throughout the USA. Panelshake has developed and demonstrated the technology to produce roofing products out of natural fiber – recycled plastic composites that out-compete asphalt in price, performance and aesthetics for the US $15B/yr re-roofing market.
Panelshake Corp. is a materials company that has developed proprietary processes for manufacturing natural-fiber, recycled thermoplastic composite materials that are 2X the strength and stiffness and are 4X faster to mold than commercially available competing materials. These breakthrough green materials will allow this class of materials, most commonly used in Trex™ decking, to out-compete wood, concrete, asphalt and plastics in many consumer, transportation and building applications. Previously these types of materials have been sold at a premium price based upon their long-term performance.
Panelshake’s first product line is a patented roofing panel (www.panelshake.biz) that emulates wood shakes, slate or tiles.
Panelshake’s Cedar shake emulating panel has passed all International Code Council 3rd-party performance tests required for installation in most municipalities in the US and with confidence to give a 50 year warranty. In comparative tests it outperforms all other commercially available plastic or plastic composite roofing materials. Panelshake is Class A fire rated, Class 4 hail rated, 110 MPH wind rated and is mold, mildew, rot and color-fade resistant.
Panelshake also has 2.5X the 'R' value of asphalt shingles, is available in cool-roof colors and is compatible with solar-roof installation.
Panelshake’s extraordinary material properties allow the manufacturing of the product in panel form which not only reduces the product cost but makes installation very quick. The panels are installed like 3-tab asphalt roofing using normal tools and without specialized training.
In addition to 3rd-party certification tests, Panelshake has been demonstrated in the field since June 2000 on eight different installations in Texas and Wisconsin that still look and perform like new. Over $3M has been invested in testing, demonstrations, market surveys and equipment.
Panelshake will be competing in the $15B/yr residential, relatively recession-proof re-roofing market. Seventy-five percent of all roofing jobs are re-roofing and growth is expected to continue over 5%/yr for the foreseeable future. Including new housing, the residential roofing materials market consists of $8B/yr in architectural roofing (tile, shakes, slate), $400M/yr in plastic emulations of slate, tile and wood shakes and $13B/yr in asphalt roofing. Panelshake will out-compete architectural products by being ½ the installed price with the same aesthetics and performance and out-compete laminated asphalt by being the same installed price but with 2X the lifetime and better aesthetics. The easiest market entry will be the replacement of real wood shakes (~ $500M/yr) which is restricted in many areas in the West including the SF Bay area due to the fire hazard.
Nintety percent of roofing materials in the USA are distributed through 6 major national professional roofing supply companies and not through hardware or home-improvement stores. To gain the attention of these distributors you must demonstrate an ability to manufacture at a significant volume to make it worth their while and demonstrate that you have passed the code tests. Our experienced sales VP has had discussions with these distributors and has verbal confirmation that they will put Panelshake in their distribution yards when we are able to manufacture.
Panelshake’s CEO and CTO have been involved in several materials startups and bring expertise in management, chemical process engineering and marketing. Panelshake’s sales VP has 15 years experience selling decking and roofing for GAF (the largest US roofing manufacturer). Panelshake’s lead advisor is on the board of 3 venture funded green materials companies.
$3M in equity financing is needed to setup a manufacturing facility in in proximity to the SF Bay area in conjunction with $500K in equipment already owned by Panelshake Corp. Panelshake’s first production line will have sales of $13M/yr with operating and contribution margins of 30 and 50%. This corresponds to only 1% of the West Coast premium roofing market (~ 2000 homes/yr).
Why it should be recognized:
Over the lifetime of a house, the roof covering is the homeowner’s largest single maintenance expense and has the largest effect on energy consumption. Panelshake’s solution provides an economical, energy efficient and green alternative to asphalt roofing. Panelshake’s long-term goal is to transform a significant part of the US roofing market from oil-based to recycled plastic based.
Panelshake’s solution should be recognized for the following reasons:
Recycled: Panelshake contains ~30% recycled post-consumer polyethylene and ~50% agricultural byproduct natural fibers. Our first facility in proximity to the SF Bay area, will consume approximately 11,000 tons/yr of rice hulls and 6,000 tons/yr of mixed color, low-value, recycled polyethylene (#2 bottles).
Locally made: Panelshake will be made in facilities throughout the US with proximity to markets as well as raw material supplies while typical asphalt and concrete roofing ship their products long distances to their markets.
Non-toxic: Panelshake does not contain toxic ingredients unlike competing products which can contain halogenated flame retardents or polycyclic hydrocarbons.
Recyclable: Panelshake is made from a thermoplastic composite which is easily recyclable. Old roofing, construction scraps, and manufacturing waste can all be ground up and used to make new shakes with the potential for a nearly zero waste operation.