Waste conversion and platinum group metals recycling company says projects are moving forward.
Global Clean Energy Inc. (GCE), Houston, a precious metal recovery and high-value waste conversion business, focusing on the recovery of platinum group metals (PGM) and derivatives from the tires and industrial plastic industry, says it is proceeding with its planned acquisition of a PGM business. GCE says it expects to report revenues of approximately $20 million per year in 2015 based on the acquisition. The company will be a fully vertically integrated operation from procurement through smelting on route to recovering up to 99 percent of the precious metals found in end of life catalytic converters. The management team will be comprised of top executives from the two companies, GCE adds.
The company notes, PGM analysts expect annual palladium deficits of approximately 2 million ounces per year for the next three years. Palladium mine supply production this year will fall to its lowest level in nearly 20 years, while demand for the metal continues to grow, according to a Dec. 1, 2014, Citigroup research report. On the demand side, analysts point to United States' demand, as well as China's drive to enforce auto emission Euro 5 standards and the burgeoning market in Brazil. GCE has agreements in place with a major auto manufacture to buy and sell converters on their behalf to supplement their supply chain.
The acquisition previously scheduled to close in Q4 2014 is on track for late January 2015, says GCE. Final structuring and audit requirements have delayed the closing but the companies have been working closely together throughout the process. GCE's primary technology supplier has been actively engaged and working on a range of critical development areas.
2015 will see GCE continuing to move ahead with its waste conversion sites. GCE has locked feedstock from two of the largest U.S. plastic and tire sources in the industry. The waste to fuels project will deconstruct both plastic and tires in two separate pyrolysis lines to create transportation fuel and carbon char and has confirmed offtake agreements for its byproducts. GCE says it will move quickly to develop a hybrid conversion site and will finalize its joint venture structure with a proven pyrolysis technology company in Q1 2015.
In early 2014, GCE made inroads into the biofuels market in close collaboration with Seneca Biofuels in upstate New York. The company closely evaluated the conversion of significant dairy cattle waste for energy project with a site and operating team in place. After careful analysis GCE determined the supply, PPA per kilowatt and capital costs did not meet its investment criteria. GCE opted not proceed with the Seneca site development.
