Joe Mimran 13:43
And exporting is such a challenge for so many companies. There’s new laws and there’s all kinds of things that come about when you go into a new country. But just talk us through some of the biggest hurdles and challenges that you’ve had as you’ve been exporting.
Jocelyn Doucet 14:00
The culture is always a big challenge. But we are lucky enough that we speak French here, so we’re able to communicate very easily with French counterparts than with other countries. However, the culture is different for sure, but I think if the language barrier is at least eliminated, it helps a lot. We did face that in some Asian countries for sure. Not only on the language barrier side, but also on the way they do business. The way they say things and the way they don’t say things. It took us some time to understand that, essentially, our client was telling us something that we didn’t quite understand.
We learned that where we now partner with local agents, it helps us in how we develop the business and how we establish the business strategy. I think the culture is certainly one thing that was very difficult. And we engaged with a lot of companies, and they didn’t go through, maybe because we weren’t able to understand each other. It’s quite sad: You have a fantastic company in front of you and it’s just impossible to understand. So, we hired people that speak the local language, we learned how to make things happen. The clients come back to us now, but for sure, I think the culture is certainly something that we underestimated. We think we speak English, we’re North American, we’re not used to that. But when you speak with different European countries, and they all do business differently, it may create some tensions sometimes.
Joe Mimran 15:20
But also, isn’t the sale process just a very difficult process to begin with? First of all, you’re selling a very technical service and then, you’ve got to spend time to travel to these countries; you’ve got to go to shows. Tell me, specifically, how did you go about it? Just the guts of how you went at it.
Jocelyn Doucet 15:41
I think the fundraise part of the company was also leading to the sales process. What I mean by that, when we raise funds, we talk to their corporate ventures, so companies, strategic investors, like chemical companies, in our particular case, they all have their own corporate venture arm. These guys scout technologies. They scount investments, but primarily, they scout technologies that could fit into their core strategy of how to become more sustainable. A lot of the clients we have now, we got introduced by CVCs, corporate ventures, or even venture capital firms. One French fund that invested in Pyrowave back in 2018, they had Michelin as part of their limited partners. And so, by having them as our investor, they also talk about Pyrowave and what we do, and we can recycle polystyrene, and someone in the room for Michelin says, “Hey, listen, we were looking for a styrene solution. How we can have recycled styrene for our tires,” and they got introduced.
I think in the natural cycle of building a company, if you have the right investors at the right time, and you talk to the right people, eventually, they get to know you more. And that kind of gets me to the point where you can’t get where you are 10 years down the road without watching the 10 years because one thing that we have that we didn’t have back then is that we’re still there. It’s a credential that you haven’t gone down the drain. And so, when you talk to clients, they’re like, “OK, you’ve been through this, you must have something interesting, otherwise, you’d be dead by now.”
Joe Mimran 17:21
It's an amazing story that’s really a tribute to yourself in terms of being an entrepreneur and having hung in for all those years, and now, exporting the way you are and doing business the way you are. I find it also super interesting in the way that one thing leads to the other. And if you don’t put one step in front of the other, you sometimes can’t get there. But also, the fact that you have to raise money all the way along, which is a very painful process for a lot of entrepreneurs. And many entrepreneurs just don’t have the courage, or the guts, or the capability to do that over a long period of time. You must have had some partners or programs that you were part of, people who helped along the way. You mentioned some venture capitalists. Are there any other partners who helped you as you’ve grown?
Jocelyn Doucet 18:15
Of course, there are a lot of people you meet during the journey. But, for sure, there are a lot of government programs that really helped us early in the process. For example, Sustainable Technology Development Canada (SDTC). They’re a Canadian Initiative where they invest in early-stage companies to demonstrate their technologies, and help them scale and get commercial-viable product. SDTC was one of the organizations that really helped us at a critical time of our company. But eventually, things, like I said, lead to another.
SDTC, they have a wide network of investors as well, so they’re able to introduce you to other investors, and then, so on and so forth. This is how we kind of got started. My partners, I have my fantastic team, of course, they’re delivering fantastic engineering products and testing research projects, they’re closing deals, now they’re able to make sales. At the end of the day, I think we’re all driven by a mission and I think the vision and the mission is very critical.
Why are we doing this? We’re not just doing XYZ product. We’re doing something because we believe that’s the way it should be and we believe that the future of our industry should be electrical. We’re able to do it, and we’re able to make lower carbon footprint materials by bringing in innovative technologies. People in the company, they all believe in this, otherwise, they wouldn’t show up every day—especially not in the early days when everything was so difficult and we didn’t have fancy offices. They’re here because they still believe in that vision.
Joe Mimran 19:39
It’s a wonderful vision and you speak of it in an evangelistic way, which is also an important part of leading a team and being an entrepreneur because you specialize in a technology that regenerates all these post-consumer and post-industrial plastics into these new materials. It'’ not really a new material—
it’s reusing the material. Perhaps, you can also share with us some examples of the customer service that you provide and how you meet some of the key demands from your customers.
Jocelyn Doucet 20:13
Well, sure. We’re just starting now to get our product in the market, so it’s actually the product that was the core of our interest for the past years. Now, we’re really starting to develop this after-market business. But, right now, essentially, clients come to us when they have this need for what I call the “recycled styrene.” It’s one chemical; it’s a commodity chemical. We’re able, with our process, to make that identical chemical identical to virgin with waste. And so, you have lower carbon footprint.
We have a carbon footprint impact, so people come to us and say, “Well, we’d like to offset our virgin styrene with renewable styrene, low-carbon footprint, etc.” And when they come to us, they send us their material, we test it. “OK, technically it works. Here’s the deal.” We sell them the equipment. We sell them the licence. They operate it and eventually, of course, there’s some after-market-like data. We can help them with the parts and training, and everything like that. But in the end, what they have as a service is that they’ve been able to reduce their carbon footprint, and they’ve been able to meet their recycled content targets. This is what drives the economics because, otherwise, they would have to pay a tax for carbon, or they would have to pay a tax if they haven’t met the recycled content. And most of them, they would lose this right to play. If you don’t comply with the regulation, but your competitors do, then you lose the right to play in this market. That’s kind of the value proposition in a nutshell and that’s why people come to us. That’s what we offer.
Joe Mimran 21:42
Now, supposedly, there’s something, like 300 million tonnes of plastic waste, that are produced annually. Have you made a dent in that?
Jocelyn Doucet 21:52
I’ll tell you a story that’s really funny. There is 300 million tonnes produced every year, and that’s all going in our waterways and soil, everything. And yet, the biggest challenge we have is to find feedstock for our recycling process. Isn’t that funny? We’re trying to solve a wage problem, but apparently, there’s no problem because there’s no feedstock. That’s the crazy challenge we have. And why is that a challenge? It’s a challenge because we don’t have the infrastructure to reconvey that material that was, for decades, just trash and thrown away. And nobody tracks this anymore. They just disappeared.
So now, we have to build this re-collection infrastructure that will reconvey that into a new preparation process, and then, take that as a raw material for our processes. And here’s the same thing: We have all those locations where we produce trash, we just haven’t figured out yet how are we going to pipeline all that material into single locations where we can reuse it? That’s a challenge we have. I don’t have the answer to this. And you know what? It’s going to be even worse because we predict that by 2030, there should be three times more plastic produced. We have to crack this problem. We have to figure out how to convey that material back into our recycling process.
Joe Mimran 23:09
It sounds like you’ve got another business idea in just trying to figure out this new infrastructure. Is that something that you might be working on?
Jocelyn Doucet 23:18
We have to be working by force somehow because if we want to be able to sell--and this is the circular economy conundrum--you want to sell something that turns trash into product. You may have this brick that turns the trash into product. But now, you have to also find a way to get the trash to the process. Somehow, we have to develop that skillset, as well. We cracked that show with Michelin. Our project we do in Europe, we had to figure out how the logistics of the material will have to be, in order to match our process demand. And now, we’re making it available, as well.
When there’s a hole somewhere in the market, there’s always an opportunity for business. But you’re right. This is the big thing. And every time you talk to people in the space, the first question they ask is, “How do you deal with the feedstock?” I don’t have the whole answer to this, but I think government certainly needs to step in. If we have invested in water reclamation process, I think we need to also have a plan or, at least, a strategy on how we’re going to deal with that growing amount of waste. If it brings advantages to the front end when we use it, it has to be somehow compensated. Some cash has to come somewhere to be able to also deal with the material after we use it.
Joe Mimran 24:39
Do you have any direct competitors out there at this point?
Jocelyn Doucet 24:43
Right now in the chemical recycling space, you have like two big families, two big tracks that you can look at: You have what we call the “coal processing” track. A lot of companies, essentially, they will just liquefy plastics, and then, blend it into the virgin chemical process and co-process it with a virgin material. The disadvantage of that is that you always need to have virgin material to process it. You’re not independent of virgin, so for each kilogram of recycled material, you may need 10 or 100 kilograms of virgin. So basically, you don’t solve the problem.
You also have the “standalone” track, like our technologies, where we’re able to segregate the material that you produced, and you end up having a product that’s 100% recycled. Then, you can track it and trace it all the way down to the chain because in the co-processing track, those trace of materials all blend in the refineries product. You end up having a product that may have a fraction of a percent in your product, but it’s diluted in the virgin material. So, segregated tracks are obviously more interesting, but where the competition is, by coal processing in an existing process that’s already been depleted for tens of years.
Joe Mimran 26:01
Great explanation. And just as you’ve been going through the last 10, 15 years, building your business as an entrepreneur, a lot of the listeners are budding entrepreneurs, what have you learned along the way? What advice would you give to entrepreneurs?
Jocelyn Doucet 26:17
Working on an important problem is always something that made my life easier. But one thing saved me all the time: Someone who always showed up and said, “Oh, I think what you do is important, maybe we should help you.” And someone comes over, they lend you the money, or they invest in the company, or they open your doors and make something happen. I think working on something important is a major part of the business. I’m trying to solve something that’s important, enough so that people are willing to take a bit more risks, or, at least, they believe that this is worth putting in the effort. I would recommend finding an interesting problem and try to solve it better than others.
Joe Mimran 26:57
I think, today, people are very interested in having a cause, something that goes beyond just the commercial aspect, which is what you’re saying. And a lot of consumers are also rewarding businesses by voting with their wallets, in terms of supporting businesses that are trying to solve problems in the world today. So, kudos to you for doing that. Also, you said something really interesting early on, this point about being naive. Sometimes, you get into business, and you think it’s going to be easier than it is, or you go ahead and think, “Oh, I can do this.” And it's actually that naive quality that gets you to a place that nobody else would probably go to. I respect that a lot.
You never want to dissuade somebody from following a dream or having this conviction that they can do something that perhaps hasn’t been done, and naivete will help you. I really want to congratulate you on your business, what you’ve been able to accomplish. The fact that you have this higher goal, and that you’re really helping all of us in achieving a cleaner and better planet. So, lots of congratulations. Great chatting with you, Jocelyn.
Jocelyn Doucet 27:57
Thank you so much.
Joe Mimran 28:00
For those who want to learn more, EDC senior analyst, Michael Borsch, is exploring Canada’s cleantech sector, offers a thorough look at Canada’s cleantech and environmental sector. Read this in-depth report to discover the challenges and opportunities. Thanks for joining us today on the Export Impact Podcast. If you enjoyed today’s episode, we’d love for you to subscribe, rate, and leave us a review on your favorite streaming platform. See you back here in two weeks.