GreenShift Corp. announced its acquisition of an 80 percent stake in Electronic Scrap Recycling Corporation, an Indiana-based full service recycler of electronic components.
ESRC currently provides full service electronic waste recycling, logistics and Certified Data Destruction services to public and private sector clients out of its 125,000 square foot facility in Elkhart, Indiana.
The company also is working on developing a ferrofluid process that is capable of preferentially separating targeted compounds from a mixed solid waste stream. Ferrofluids are liquids that are comprised of nanoscale magnetic particles suspended in a carrier fluid and exhibit novel properties when exposed to specific magnetic fields. Conductivity, viscosity and volatility can all be manipulated through the selection and sizing of the particles and the application of specific magnetic fields.
ESRC plans to use its ferrofluid process, the Tornado Generator technology, GreenShift's existing plastics and metal separation and other technologies, and some conventional process technologies to dramatically decrease capital costs and improve operating efficiencies for processing e-wastes.
Brett Oliphant, ESRC's CEO, said that "Our view is that the e-waste recycling industry is becoming a commodity-driven business. Tipping fees will eventually give way to commodity sales as the value of the plastics and metals in e-waste begins to govern the economics of the industry. We believe that, when this time comes, the relative operating efficiencies of e-waste processors will define who survives and who does not. Our strategic plan therefore is to invest in technologies that drive operating costs down while we acquire small- to medium-sized e-waste brokers and processors to consolidate volume. We believe that GreenShift will help us on both fronts and we are very excited to have their support."
"E-waste recycling is a compelling challenge that we intend to address with our investment in ESRC," added Kevin Kreisler, GreenShift's chairman and CEO. "ESRC's existing volumes of e-waste and positive cash flows are strategic to our existing technologies, their technology has some fascinating potential, their approach to the market is dead on, and their business presents us with a platform to acquire significant market share. We are excited by this investment and we intend to provide ESRC with the resources it needs as it scales its business."
Under terms of the agreement, ESRC will assign its technologies and intellectual property rights to GreenShift Industrial Design Corporation, a wholly owned GreenShift company, who will in turn provide ESRC with non-exclusive license rights to all current and future GIDC technologies, including its Tornado Generator(TM) and plastic waste separation technologies.