What exactly is Carbon Black and what are its uses? For one, 20 billion pounds of it are used each year. The company plans to produce 14 million pounds a year, conservatively speaking. Carbon black is a black powder or granular substance made by burning hydrocarbons in a limited supply of air. This produces a black smoke containing extremely small carbon black particles, which are separated from the combustion gases to form a fluffy powder of intense blackness. This material has a large surface to volume area as well.
It is used in a number of processes including pigmentation and as a reinforcement of rubber and plastics. The main demand of Carbon Black comes from its use to reinforce rubber tires. Tires represent 70% of the Carbon Black market. As well as other industrialized rubber products. Global demand is expected to increase around 3.4% a year.
The company’s process is so valuable because their input is rubber tires instead of oil. This takes away the production cost variances created from price fluctuations in the price of Oil. Another reason is the extra revenue stream that is created for the company as black carbon is a Byproduct of their main process. At the projected 14 million pound output of Carbon Black, the extra revenue created is around $5 million dollars, making the Carbon Black a significant additional revenue stream for the company.
Alliance Recovery Corp. (ARVY.OB) has developed a technology to convert used rubber material into energy and other raw materials. Their technology converts the rubber to oil through a thermo-chemical process that produces no harmful byproducts. The converted oil then runs alternators, which produce electricity to supply the surrounding areas. Its conversion process also creates heat and CO2 that they use to grow greenhouse crops. Carbon Black and Steel recovered during the conversion process allow for additional revenue streams. They project that each conversion facility will earn $7 million annually in EBITA revenue and intend to expand globally.
Let us hear your thoughts: Alliance Recovery Corporation Message Board
