For Aduro Clean Technologies, Inc. (CSE: ACT) (OTCQB: ACTHD) (FSE: 9D5), recycling plastic waste more efficiently than any technology out there is the big goal. It’s a huge market. About 400 million tonnes of plastic is produced each year, and that number will hit 1.1 million tonnes by 2050 if current growth trends continue. Around the world, less than 10% of plastic is recycled, while the balance is incinerated, landfilled, or littered. The bulk of unrecycled municipal waste plastic is polyethylene, polypropylene, and polystyrene, all of which are recycled easily by Aduro’s Hydrochemolytic™ water-based process that is nearing commercialization.
But there are other large markets that present compelling opportunities for the company’s diverse technology platform. The latest example is highlighted in Aduro’s recent announcement of a new patent application for the clean and efficient production of high-value BTX chemicals from waste plastics and renewable oils. This new potential market for the company is expected to reach about $275 billion by 2027, according to Reports and Data.
Watch a video breaking down the significance of Aduro’s BTX announcement.
What are BTX Chemicals?
BTX stands for benzene, toluene, and xylene. Commercially, BTX is also known as Hydrogenated Pyrolysis Gasoline, or HPG. These are simple aromatic hydrocarbons that are typically produced in petroleum refineries, and they are key ingredients in a wide variety of products. Here is a non-comprehensive list of products that use BTX chemicals:
- Plastics
- Lubricants
- Pharmaceuticals
- Rubber
- Paints and Coatings
- Fuel Additives
- Cleaning Agents
- Adhesives
- Pesticides
Oil refineries use high levels of energy, with accompanying high levels of carbon dioxide emissions, to create BTX chemicals among the complex mix of many products of the refining process. Aduro believes it has found a better way to make them, with lower energy requirements and lower carbon dioxide emissions. And the feedstock required for Aduro’s process is waste plastic and renewable oils, which adds to the company’s mission of enabling a circular economy for hydrocarbons and reducing reliance on fresh fossil fuels.
Other Large Market Opportunities
Aduro has a few other significant addressable markets in its wheelhouse, and will likely be developing more as time goes on and the technology gets tested for more applications. Back in May, the company shared results of its tests of the Hydrochemolytic™ process for the processing of crosslinked polymers, or XLPE. These materials have incredibly strong bonds that make them essentially non-recyclable using current technologies, but Aduro was able to break them down into usable hydrocarbons at up to 84% efficiency.
XLPE is used in tires, adhesives, coatings, medical devices, and chemical storage (among many other applications). According to Zion Market Research, the global XLPE market stood at $6 billion in 2023 and is forecast to double in size by 2032.
On a parallel track to the plastics industry, Aduro is in a similar stage of development for the upgrading of very heavy oils called bitumen. Bitumen is the sludge that comes out of operations like the oil sands of Alberta. Bitumen is the main source of Canadian oil production, with about 3.4 million barrels per day being produced in 2023 according to Alberta Energy Regulator.
Bitumen itself is also known as asphalt and its primary use is on roads and roofs. But it can’t be transported through pipelines. However, it can be upgraded into lighter oil that can be transported through pipelines. Upgraded bitumen has much more value for a broader array of uses than the original heavy version. This is where Hydrochemolytic™ comes into play, offering a far less energy intensive and expensive way to upgrade bitumen.
The Way Forward
Aduro is at a critical juncture in its corporate development. By the end of the year the company expects to begin construction of a commercial-scale pilot facility for plastics. Aduro has been working with Shell as part of its Shell GameChanger program, and recently announced a collaboration with TotalEnergies, another global energy giant. These are pretty big partners for a company with a market cap in the $135 million range.
Armed with patented and proven and groundbreaking technology, Aduro is in the process of an IPO on the New York Stock Exchange. Of course, this is a huge step up from the Canadian Stock Exchange, and represents a sort of coming out party for the company. The new listing could greatly increase visibility, access to capital markets, and investor interest. Now is a very good time to acquaint yourself with Aduro Clean Technologies.
