Glycol, a liquid chemical made from crude oil and natural gas, is found in a multitude of consumer and industrial products, including clothing and upholstery fabrics, plastic drink bottles, food packaging, and antifreeze. Worldwide glycol production currently stands at 5.5 billion gallons annually, increasing at a rate of 0.5 billion gallons per year.
During use, glycols become contaminated and unusable, producing a vast amount of waste glycol-over 700 million gallons per year in the U.S. alone. Current recycling methods are only effective for used antifreeze. Even with this technology, only 12% of used antifreeze waste is formulated into recycled antifreeze. Although the Environmental Protection Agency classifies waste glycol as a hazardous material, most waste glycol is disposed of without documentation. Improperly disposed glycols can leach into the soil and contaminate groundwater, endangering the environment.
Manufacturers in the other four waste-producing industries (textile, airline, medical, and HVAC) have no way to recycle used glycols into Type 1 (virgin-equivalent) material-until now. GlyEco (OTCQB: GLYE), a green chemistry company, is rolling out a breakthrough recycling technology that addresses this $25 billion unmet market need.
GLYE's patent-pending technology enables used glycols from all five major waste-producing industries to be recycled into Type 1 materials repeatedly. The Company's GlyEco Technology™ offers a 20%-50% reduction in processing costs over currently utilized glycol recycling methods.
The Company is aggressively expanding its processing capacity to meet customer needs. GLYE acquired five profitable recyclers in 2012 and plans to acquire additional facilities in 2013. The Company plans to retrofit the facilities in the months ahead to make them capable of producing Type 1 materials.
GLYE is partnered with ethylene waste collectors and polyester manufacturing companies in multiple countries, and is making inroads with sources of waste ethylene glycol in South America and Asia. These existing relationships, as well as GLYE's relationship with MEGlobal, a joint venture between Dow Chemical and Kuwait-based PIC, should provide the Company with a steady source of revenue once its technology is implemented.
GLYE is a first mover in the glycol recycling market with limited competition from established ethylene glycol producers. The Company is positioned for significant share price growth as it rolls out its proprietary technology in the months ahead. Trading in the low $1 range, GLYE provides investors with a compelling profit opportunity. To learn more about GLYE, watch our "RedChip Money Report" interview with Chairman and CEO John Lorenz.
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