Feedstock

We have the ability to treat the 'untreatable'

Approximately 600 billion bottles are discarded every year, of which only c. 47% is collected. A significant portion of these collected bottles end up in landfills or incinerators, and the remainder is mechanically recycled / downcycled. Moreover, most of the demand for post-consumer PET bottles is focused on a fragment of the waste PET bottles available: the best-of-the-best, clean and clear bottles. Mixed-coloured bottles are much harder for mechanical recyclers to process, and are mainly downcycled into non-colour critical applications such as fibre fill. PerPETual’s ability to treat the untreatable is an important advantage, which management often refers to as “enhanced bottle recovery” by analogy to the oil and gas sector’s “enhanced oil recovery”.

PerPETual sees feedstock securitization as a very important element of its business model, and achieves this in three different ways:

• By purchasing from waste management companies and collectors
• By working with waste management companies to divert PET bottles from main waste streams in large metropolitan cities. These main waste streams usually end up in landfills or incinerated at a cost to the waste management companies.
• By partnering with existing recyclers who already have access to the feedstock channels, and offer them a superior solution to treat all types of post-consumer PET bottles combined with superior economical performances.

Feedstock Prices
(USD/MT)

PerPETual’s expansion plan includes deploying further ReNEW units globally. The Company estimats that by 2015, it will require 150,000 tonnes of post-consumer waste bottle feedstock annually to operate its plants, representing c. 1% of the current bottle waste generated annually, and c. 2% of the current amount of post-consumer bottles collected annually.