ARCA Recycling and ARCA Advanced Processing Register $1.7 Million in Carbon Offset Credits from Two GHG Destruction Projects
March 29 2016 - 6:00PM
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 ARCAARCA'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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160329006592/en/
ARCA RecyclingEdward R. (Jack) Cameron,
952-930-9000President
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