Sludge Watch ==> CEO of N-Viro - Future vision: burning N-Viro soil as biofuel

[Maureen Reilly]

http://seekingalpha.com/article/75620-n-viro-international-ceo-speaks-about-his-company

On May 5, The Wall Street Transcript interviewed Timothy Kasmoch, President 
& CEO of N-Viro International Corporation (NVIC.OB). Key excerpts follow:

TWST: We would like to begin with a brief historical sketch of the company 
and a picture of the things you are doing at the present time.


Mr. Kasmoch: The company was founded from the concept of utilizing waste 
by-products from the cement industry, primarily cement kiln dust. The 
company worked with using these materials in a road base, road surface type 
application, and moved forward realizing that mixing municipal biosolids 
with these waste cement kiln products caused a very unique reaction and 
achieved disinfection and stabilization of municipal biosolids. That 
technology was perfected in conjunction with the Medical College of Ohio.

That propelled the company into going public in an IPO in 1993 and the 
company operated under a business model that would license its technology to 
operators or municipalities and exist on a premise of royalty and tonnage 
type tip fees for its existence. There was some support in that business 
model in the early 1990s.


The EPA had issued what's known today as the 503 regulations, which are the 
sludge biosolids regulations handed down by the federal EPA. I can't 
honestly tell you why or what, because it was before my time, but the 
business model struggled. When I came into the company two years ago, it was 
my vision that this was to become an operations company that needed to 
utilize its technology from an operational standpoint. In other words, we 
needed to own our facilities, operate our facilities and control our 
destiny.

The technology developed through the late 1990s and early 2000s has led to 
additional patent issues principally through the efforts of Dr. Terry Logan, 
who remains engaged with the company. One of the technologies was a dryer 
technology, which utilized some form of waste heat or natural gas to further 
enhance the product and to evolve our product to produce a more valuable, 
finer, granular-type fertilizer product. This technology morphs into today 
what we feel is our primary focus, so to speak, by creating a dry coal-like 
fuel substitute product that could be burned in a power plant for electric 
generation.

TWST: What are the opportunities that lie ahead for the company and what are 
the strategies you'll be employing?

Mr. Kasmoch: As we announced in 2007, we did a full-scale test demonstration 
of our patented N-Viro Fuel technology at the Michigan State University T.B. 
Simon Power Plant. That test was a two-day demonstration. We did one 24-hour 
test using a municipal biosolids derived product blended with coal, and a 
second day using animal manures blended with coal, which works equally as 
well in our process. That two-day demonstration was very successful. N-Viro 
Fuel works and works well. The operators at the power plant, in their words, 
stated that the facility performed "without deviation." We were able to 
prove that our product can be blended with coal and it can be burned very 
effectively for electric generation.

TWST: What would you reasonably expect the company to look like in about 
three years?

Mr. Kasmoch: We see our growth potential to be enormous. It's really hard to 
forecast and predict, but in three years I see that we'll be under design, 
development, construction and/or operation of facilities in multiple states. 
This is something that has already begun and is in the initial stages. We 
have announced an MOU level agreement, with Michigan State University. 
Michigan State University should become our first operational facility. At 
least I hope so.

TWST: What would be the two or three best reasons for the long-term investor 
to look very closely at N-Viro?

Mr. Kasmoch: I believe that the company for years was viewed as a sludge 
management company. Going forward, it will morph into being more of a 
biotech, biofuel-type company with a good structure for potential 
profitability