B1 Energy

Starting Up: How B1 Energy plans to transform rural recycling

By Margaret Hedderman

In Rural Colorado, access to recycling has never been easy. Sparse populations and rugged terrain can make traditional recycling infrastructures impractical and costly. However, John Armstrong, co-founder and CEO of B1 Energy in Salida, reframed these challenges as an opportunity. In what has become a three-year journey from idea to launch, B1 Energy is poised to make an impact in rural recycling.

The Spark of an Idea

In 2021, the recycling facility in Chaffee County shut down, leaving a sizable void in services for a growing region. Recognizing this gap, Armstrong saw the potential to reimagine recycling infrastructure, not just for his community but for rural areas across the state. 

Colorado’s recycling rate is among the lowest in the nation, a stark contrast to the state’s environmentally conscious reputation. The primary culprits are its vast geography and mountainous terrain, which pose significant logistical challenges for recycling operations.

“We have a lot of different obstacles—called mountains—that prohibit easy access to some of these large facilities,” Armstrong said.

The recycling industry’s razor-thin profit margins exacerbate the issue, making long-distance hauling economically unfeasible. Compounding the problem is our nation’s well-established infrastructure for producing inexpensive virgin plastics, which often undercuts the financial viability of recycling. 

“If there’s no market for something in our society, it just doesn’t get done,” Armstrong said. “To commit to this, you have to actually have an infrastructure model that fits these rural communities.”

Armstrong’s initial idea to boost rural recycling was to build a fixed facility powered by a small modular anaerobic digester.

“It was an integrated system that powered itself and had this great output,” Armstrong said. 

Theoretically, this system would have a low operational cost and generate a variety of marketable outputs, creating a source of revenue for the community. 

“But we were finding it very difficult to convince a rural community to invest $5 to $10 million in a brand new facility when they didn’t even know how much recycled material or waste organics they were going to be able to produce.”

Armstrong pursued a number of business model iterations. Between 2022 and 2023, he participated in both the Ascent Accelerator in Chaffee County and  our Founder Coopetition // Idea Factory pre-accelerator program to continue refining his business plan.

“The Founder Coopetition definitely helped me hone my pitch,” Armstrong said. “And have the ability to accurately describe our organization, the value, we bring in what that entails, in 90 seconds.”

Innovating with Mobility

By the end of 2023, Armstrong and his team pivoted to a more flexible and scalable solution: a mobile recycling facility. After forming a partnership with a recycling equipment company on the East Coast, Armstrong was able to access their mobile sorting system dubbed the “Roadie.”

B1 Energy
The Roadie mobile sorting system

A recycling platform on wheels, the Roadie can be brought directly into rural communities, offering immediate and tangible recycling solutions. This collaboration allowed B1 Energy to leverage existing technology and adapt it to the unique needs of rural Colorado.

“We can now show up in a community, start recycling immediately, and educate people on the importance of recycling,” Armstrong says.

This mobile solution provides crucial data and metrics for communities, helping them understand their recycling needs and justify an investment in permanent infrastructure.

B1 Energy launched with the Roadie in the Spring of 2024. Initially providing zero-waste services for events such as concerts and festivals, they are now in the process of securing longer-term contracts with institutions like Western Colorado University and Gunnison County. These contracts involve managing all waste and recycling for these entities, further proving the viability of their model.

The Future Vision

Looking ahead, Armstrong envisions expanding B1 Energy’s reach beyond Colorado. The goal is to establish ten facilities in ten years and deploy multiple mobile units to continuously serve various communities and events.

Armstrong emphasizes the importance of staying agile and responsive to market needs. The lessons learned from their journey underscore the necessity of constant innovation and adaptation.

“You need to stay flexible and agile and move quickly, constantly testing the market for how your product or business actually functions,” Armstrong advises. “It’s important to keep practicing, keep trying, and keep refining your approach.”

B1 Energy at West Slope Startup Week

Armstrong is serving as the zero-waste lead at this year’s West Slope Startup Week in Durango, August 19-23. 

“One of the things we’re doing to actually make it a truly zero waste event is working with the team at West Slope Startup Week to ensure that all the venues use materials that are fully recyclable or compostable,” Armstrong explains. To achieve this, B1 Energy is partnering with local companies to meet these requirements, ensuring that the event not only promotes innovation but also sets a high standard for environmental responsibility.

Learn more about WSSW here.