It’s certainly no secret: there’s a lot of waste in the world and it isn’t going to stop anytime soon. The global population continues to expand and so does its use of perishable and non-perishable goods. But a big miss by market leaders like Waste Management (WM), could be smart investors’ tickets to capitalizing on a major industry opportunity that’s flying under the noses of even Wall Street’s biggest fund managers.
BioHiTech Global (Stock Symbol: BHTG) Could Hold The Secret That Companies Like Waste Management Inc. (WM) and Republic Services (RSG) have Been Searching For & It’s Flying Under the Radar of Wall Street’s Biggest Fund Managers Right Now. However we don’t think it will stay that way for much longer.
Let’s explain: When you hear “Multi-Billion Dollar Industry” what comes to mind? Many would list the gas industry, automotive industry, biotechnology industry, and many others of the variety. What most people don’t consider is the waste management industry. Waste management, something that we all deal with on a day-to-day basis, whether it is for our home or our business, is a huge industry and so is the ability to manage that waste. How big is it?
The industrial waste management industry on a global scale has been slated to grow to over $1.4 trillion by 2019 in annual revenue and deals with one of the biggest contributors to global warming! Solid waste landfills are the single largest man-made source of methane gas in the United States; it’s 23 times more effective at trapping heat in the atmosphere than the most prevalent greenhouse gas—carbon dioxide.
This is something not even Donald Trump can ignore!
Where some of the biggest in the business have focused on “management” simply being the ability to find another spot to “dump” waste and get it out of sight, this old way of doing business is about to get a rude awakening especially considering the huge impact that this can have on our planet.
But to understand where the industry is heading, you need to know where it’s come from and you don’t need to look any further than two mammoth waste management companies, Waste Management Inc. and Republic Services; the number one and number two largest non-hazardous, solid waste management companies on the planet.
These two companies have been growing year over year and with no shortage of new solid waste hitting the environment every day, it would seem that the future is bright for this industry for the long term.
But there’s a big problem right now, we could be quickly running out of Landfill space and it looks like it could be a larger problem than originally thought “Trash talk? Two Lehigh Valley landfills say they are fast running out of space”
– The Morning Call
– The Randolph Leader
– WWLP News 22
The bottom line is that it isn’t a matter of WHERE the waste needs to be put, but HOW to do it without creating new landfills. This doesn’t just help the environment but also could save organizations huge amounts of money based on transport costs, employment costs, and even general wear and tear costs on disposal transportation trucks. These are costs for waste management companies in general but these are also adding to the overall subscription costs that businesses will face in working with these waste management companies.
“High Negative Environmental Impact, High Business Cost, Enough Is Enough”
These market leaders have held to top spot for too long and the old ways of “pushing trash” could quickly come to an end with implementing a new technology & a more self-directed, user friendly option.
Imagine for a moment, as a business owner who has a restaurant. Instead of having a large dumpster behind your building that not only can be filthy, odorous, and in general a major health risk, you were able to dispose of your waste in a unit that could completely “digest” the waste created from the restaurant. We aren’t talking an incinerator but an actual device that that breaks down waste and turns it into organic, environmentally friendly processed material?
Something like this could put a huge hole in the revenue generated from the big “garbage movers” to not just cut out the need for disposal & transport services, but would immediately cut out the need for landfills entirely. In fact the two major revenue drivers for companies like Waste Management and Republic Services are exactly these: Waste Collection & Landfill Services!
Waste Management recorded just under $12billion alone (out of $13billion) in annual revenue in 2016 solely from collection and landfill operations.
Similarly, Republic Services recorded 88% of its over $9billion in annual revenue from just collection and landfill services…
This is BIG BUSINESS and one small company could be set to disrupt the entire industry!
BioHiTech Global (Stock Symbol: BHTG) provides businesses around the world with on site tools to help drive efficiencies by identifying wasteful behavior then subsequently offering a more cost-effective and environmentally efficient disposal option for what remains.
What does that mean? In short, BHTG is creating a huge cash-grab right now, which could take away immediate revenue from operations like Waste Management and Republic Services, not to mention other corporate and municipal waste management programs across the globe. Through a mix of technology and the Internet of Things (IoT), BHTG has created a dynamic platform to allow businesses the ability to manage, analyze, and control how their biodegradable waste is processed. It also helps to ensure proper breakdown and contribute to the growing environmental responsibility requirements that enterprises look to meet.
Not only has BHTG come off of a milestone 2016 but after reporting Q1 Revenues, it’s clear that this growth pattern has continued. Filings show that compared to 2016, the 2017 revenue numbers have grown by double-digit percentage points from roughly $463,000 in Q1 of 2016 to just over $590,000 during the first quarter of 2017. Most of this growth was attributed to equipment sales
According to PWC Inc, they wrote in their US Cleantech investments and insights report, that over $1.93 billion were invested in the cleantech industry in Q3 2016! Still think cleantech is just a fad? In our strong opinion, this industry built around environmentally friendly operations could be just getting started.
And BHTG’s Eco-Safe Digester® has made it that much easier for businesses to contribute. The Eco-Safe Digester ® uses aerobic digestion technology to eliminate food waste at its origin. This clean technology uses microorganisms and oxygen to safely and quickly break-down food waste and discharges it to a standard sewer line.
The Eco-Safe Digesters transform food waste into nutrient-neutral water, which could be disposed of in the conventional sanitary sewer systems. The product could digest roughly 2,400 pounds of food waste daily.
The Eco-Safe Digester is also a modern, smart, network-connected device that can be monitored across large numbers of locations under one brand.
Make sure you pay close attention to the last part; BHTG has taken the growing applications of the Internet of Things and built it into waste management. Don’t know what the Internet of Things is? In brief, it’s the newest way that companies are allowing customers to control things like BHTG’s system, remotely through the use of something as simple as a smart device.
BioHiTech Cloud™ uses Big Data technology to collect real-time operational data from the Eco-Safe Digester, providing users with powerful reporting and analytics tools. BioHiTech Cloud offers unparalleled visibility into the organic waste stream, allowing businesses to measure their waste program, while identifying inefficiencies in food management processing. This technology has helped initiate process improvements to create immediate impacts to the bottom line of its customers.
But how can investors be certain that these claims are attainable? BHTG ensures that its product meets all nationwide Safety and Regulatory standards at all times.
Rigorous testing by regulatory agencies nationwide proved the organic liquid waste has no negative impact on sewer treatment facilities. When a product bears the ETL Listed Mark, it is proof that the product has passed rigorous product safety testing and has achieved certification. The ETL Listed Mark is issued by the ETL SEMKO division of Intertek, a leading global testing, inspection and certification organization that serves manufacturers worldwide to help them reach global markets.
Eco-Safe Digester® diverts more than 70 million pounds of food waste from landfills per year. This has all been thanks to BHTG’s flagship technology. But it doesn’t end there
Where companies like Waste Management and Republic Services have been able to see consistent growth due to little or minimal innovation within the industry, this new wave of technology meets waste could be set to change that quickly…The revolution may already be getting started and first movers are already taking action.
BHTG was selected to participate in the exclusive Credit Suisse Private Innovation Circle Event
And with a leading list of marquee customers, it may not come down to proof of concept but now the next phase for rapid expansion.
This could be seen with the most recent Q3 filing that not only shows the company increasing revenues by 86% compared to the same period last year but the 3rd quarter of 2016 also showed the company out paced its 2 previous quarters by more than 30%. This could become a tipping point considering what else the company is developing. And the groundswell may just be starting to build. Just look at these figures…this isn’t like a product based company that sells one thing, one time, and hopes for reorders, BHTG’s solutions are geared toward a subscription style service.
BHTG has a goal for thousands of units to be deployed. Consider this: even if there are only 1,000 units deployed, assuming the units are all leased, the model would bring in over $8 million annually. Considering the growth rate and pace of expansion that they are seeing, it wouldn’t be difficult to see the uncapped potential if they were to get to 5000 units deployed over the next couple of years: that’s OVER $43 Million dollars of recurring revenue based on these projections.
In fact, at the end of May, BHTG delivered their 100th digester to its biggest client, the Federal Bureau of Prisons!
Think about this for a minute, the federal prison system houses in excess of 206,000 inmates on any given day and with the installation of this 100th unit, BHTG estimates that the Federal Bureau of Prisons is now diverting approximately 44 million pounds of food waste from landfills each year representing roughly 65% of the incarcerated population. The Company further estimates that the use of its digesters saves the federal government approximately $1.4 million in annual disposal costs while having a significant positive impact on the environment.
BHTG also has a hand in converting renewable fuels by using Municipal Solid Waste. The company controls the exclusive development and sub-licensing of Entsorga’s (BHTG’s subsidiary) patented High Efficiency Biological Treatment for High Quality Alternative Fuels (“HEBioT”) mechanical biological treatment (“MBT”) process in the 11 Northeast States of the US and District of Columbia. The proprietary HEBioT system produces an EPA recognized renewable fuel from unsorted municipal solid waste.
BHTG acquired a 17.2% equity interest in the nation’s first Resource Recovery Facility utilizing a proprietary Mechanical Biological Treatment in March. Through its interest in Apple Valley Waste Conversions, BHTG has the exclusive development rights for this technology in eleven states in the northeast US and the District of Columbia.
Entsorga North America, a privately held holding company that owns the facility, has the option to purchase up to 40% of the membership interest of Entsorga West Virginia, the first HEBioT facility built in the U.S. scheduled to commence operation in Q3 2017. And according to the company, not only are there contracts for input and off-take already in place but the facility is also financed with $25,000,000 Industrial Development Bonds issued by the West Virginia Economic Development Authority.
For fossil fuel users, the HEBioT process reduces the use of finite, non-renewable energy resources; reduces carbon footprint; produces sustainable fuel source with a high caloric value; and is independent of fluctuations in fuel prices.
By utilizing the HEBioT MBT system, Entsorga will be able to recover bio-mass, plastics and other carbon based materials from the mixed municipal solid waste (MSW) stream and convert them into a safe alternative fuel source. When collecting these sources of MSW, Entsorga will remove other valuable recyclable commodities such as metals and glass from the HEBioT receiving stream and put them into the local municipality-recycling stream. This is in conjunction with the Berkeley County Recycling program that is already in place.
The MSW received will be converted to a clean burning alternative fuel (Solid Recovered Fuel or SRF), which will be used by large energy users as an alternative or supplement to fossil fuels. It is ideal for co-processing (cement plants, steel mills) for the production of renewable energy use in coal/oil burning power plants or for the production of renewable energy…positive environmental impact, multiple revenue stream opportunities…starting to get the picture?
What’s more is that during the second quarter of this year, BHTG signed a contract with the Town of New Windsor, New York for the acquisition of a 12 acre site planned for the Company’s second Resource Recovery Facility utilizing the proprietary HEBioT technology for the disposal and recycling of mixed municipal solid waste (MSW).
Utilization of the BHTG’s HEBioT facilities as an alternative to traditional landfills can extend existing landfill capacity by as much as 500%. Based on preliminary design, the New Windsor facility is expected to be capable of processing approximately 130,000 tons of municipal solid waste annually with up to 20% of the facility’s capacity capable of processing source separated food waste. This could be a big step for BHTG because if/when this acquisition is complete, there’s no telling how big of an expanded revenue model that could come from something of this magnitude…and we’re seeing it now.
Key Board Member Appointed
Earlier in the first quarter, BHTG announced the appointment of Anthony Fuller as an independent member to the Company’s Board of Directors. Why could this be significant? It just so happens that Mr. Fuller recently completed a thirty-year career at Walmart where he last held the position of Senior Vice President. During that tenure, he also served as one of twelve executives on the Walmart’s Global Sustainability Steering Committee providing direction for the company’s sustainability efforts.
“This is a very exciting time to join BHTG…”
For over 20 years, he led the teams which provided both property management and maintenance for Walmart’s global portfolio. In the formal announcement of his on-boarding, Mr. Fuller stated, “This is a very exciting time to join BioHiTech as a Board Member to help guide the Company toward its promising future. In my work on the Global Sustainability Steering Committee at Walmart, I developed a keen understanding of the need for cost-effective sustainable waste management solutions and I am very excited about the enormous market potential of BioHiTech’s products. I look forward to working with Frank and the entire team to deliver strong results, manage growth, and create lasting value for our shareholders.”
Can You Afford To Miss Out On The Potential For A Trillion Dollar Industry Cash Grab?
As you can see, BHTG isn’t just a one trick pony. They’ve got involvement in to major industries with a very near term opportunity to take advantage of what the larger, current market leaders are missing out on right now. By streamlining these operations, implementing scalable and completely independent options to virtually monitor & control processes like the Eco-Safe Digester, it doesn’t take long to see that there could be huge potential to take advantage of this window of opportunity.
And to think that BHTG is only sitting at a $25 million market cap only emphasizes the immense undervalued possibilities that could be presenting themselves as we speak! There’s a chance that BHTG’s technology could be a huge industry disruptor in a space slated to grow to over $1.4 trillion before the end of this decade. With such a large cash grab in the short term, can you afford to miss a chance to capitalize?
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