MINNEAPOLIS--(BUSINESS WIRE)--ARCA Recycling, Inc., a wholly owned subsidiary of Appliance Recycling Centers of America, Inc. (NASDAQ:ARCI), is pleased to announce the Climate Action Reserve has approved the issuance of carbon offset credits for two greenhouse gas (GHG) destruction projects undertaken in September and November of 2015. These carbon offset credits will be issued into the California cap-and-trade compliance program, resulting in approximately $1.0 million in revenue for ARCA and approximately $700,000 in revenue for ARCA’s joint venture, ARCA Advanced Processing, LLC (AAP).
These destruction projects are the result of the collection of GHGs, specifically chlorofluorocarbons (CFCs), from appliance recycling contracts throughout the United States. The California cap-and-trade program encourages the destruction of GHGs in exchange for carbon offsets that can be used by regulated emitters in California to satisfy a portion of their compliance regulations. By destroying the GHGs, ARCA and AAP ensure they are never released into the atmosphere and do not contribute to global warming or ozone depletion.
Working with its project partner, ClimeCo Corporation, ARCA and AAP contract for GHG destruction at a certified third-party facility. This time-consuming, highly regulated process includes rigorous monitoring, verification and review to ensure the integrity of the destruction activities. Due to this complex process, there is often a substantial lag time in recognizing revenue from such activities. The credits announced today resulted from refrigerants collected in early and mid-2015. ARCA and AAP have since accumulated additional GHGs and anticipate further destruction projects soon.
“We are pleased to see our hard work on these projects over the last year come to fruition,” said Edward R. (Jack) Cameron, ARCA Recycling’s President. “These efforts complement our commitment to responsibly collect the refrigerant gases in the appliances we process and also provide an important source of our ongoing by-product revenue stream.”
ClimeCo Corporation (www.climeco.com) provides carbon offset project management and advisory services to numerous projects across the United States.
ARCA Recycling is a recognized leader in appliance recycling programs, supported by regional processing centers across the U.S. utilizing state-of-the-art technology that removes environmentally damaging substances and produces byproducts for recycling.
About ARCA
ARCA's three business components are
uniquely positioned in the industry to work together to provide a full
array of appliance-related services. ARCA Advanced Processing, LLC
employs advanced technology to refine traditional appliance recycling
techniques to achieve optimal revenue-generating and environmental
benefits. ARCA (www.ARCAInc.com)
is also the exclusive North American distributor for UNTHA Recycling
Technology (URT), one of the world's leading manufacturers of
technologically advanced refrigerator recycling systems and recycling
facilities for electrical household appliances and electronic scrap.
ARCA's regional centers process appliances at end of life to remove environmentally damaging substances and produce material byproducts for recycling for utilities in the U.S. and Canada. Eighteen company-owned stores under the name ApplianceSmart, Inc.® (www.ApplianceSmart.com) sell new appliances directly to consumers and provide affordable ENERGY STAR® options for energy efficiency appliance replacement programs.
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995, including statements regarding ARCA's future success. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with general economic conditions, competition in the retail and recycling industries and regulatory risks. Other factors that could cause operating and financial results to differ are described in ARCA's periodic reports filed with the Securities and Exchange Commission. Other risks may be detailed from time to time in reports to be filed with the SEC.
