GlyEco (OTCQB: GLYE) continues to make strides in rolling out its revolutionary glycol recycling technology. The green chemistry company announced this week that it has processed and sold several thousand gallons of waste glycol sourced from the textile industry.
Glycol, a liquid chemical made from crude oil and natural gas, is used to create polyester fiber chips, the base material in plastic food and beverage containers, as well as polyester fabrics, carpets, and upholstery. The worldwide textile industry is the largest consumer of monoethylene glycol, with demand exceeding 3.8 billion gallons annually. GLYE's entry into this tremendous, untapped market is an important milestone for the Company.
During use, glycols become contaminated with dirt, metals, and oils, which cause toxicity and can contaminate soil and groundwater. GLYE's technology is the only technology currently capable of recycling this hazardous material into virgin-grade Type 1 glycol - while offering a 20 to 50 percent reduction in processing costs over currently available methods.
The Company is targeting customers in five different industries: antifreeze, textile, airline, medical, and HVAC. Worldwide glycol production currently stands at 5.5 billion gallons annually, increasing at a rate of 0.5 billion gallons per year. In the United States alone, manufacturers produce over 700 million gallons of waste glycol per year. Only a fraction of this waste is recycled under currently available technology. As a first mover in this space, GLYE is well positioned to capture substantial market share.
GLYE acquired five glycol recyclers in the last quarter of 2012 and is in the process of upgrading these facilities to produce Type 1 material. According to the Company's most recent press release, GLYE has completed initial upgrades at its South Carolina plant and is making excellent progress on upgrading the others.
RedChip issued a $3.74 price target on GLYE, an upside of nearly 300% from recent prices. To learn more about GLYE, read the full report or watch our "Money Report" interview with Chairman and CEO John Lorenz.
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