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Alliance Recovery Corp. (ARVY.OB) – Garbage In, Profits Out

Every once a great while a tremendous concept is brought forth. History has been sprinkled with them, and those savvy enough to become involved in them at the beginning, were richly rewarded. Yet the perplexing question is always the same, how does one know if something is truly a magnificent concept? How does one know if it’s simply a mania, a fad, a flash in the pan, versus a bona fide opportunity?

Usually the answer lies in how well the product solves a problem. The better the conceived product is at solving a problem, the wider it’s adoption and the more successful the outcome. If the problem is a big one, and the solution is up to the task, once again history shows us that the solution provider is generally very well rewarded.

In recent months there has been an upsurge in the “green” movement. Between the calls to cut the emissions that are contributing to global warming, to reducing overall pollution levels, to seeing oil surge to almost 100 dollars a barrel, a new awakening has taken place concerning how we care for our planet, and how we use the precious resources that we have. Is this a fad? A flash in the pan? Hardly. As the global superpowers such as China, India, the US, Europe, Russia and Japan continue to grow, two glaring facts cannot be ignored. We are desperate for energy, but we are tired of polluting the very atmosphere we live in.

There have been numerous advances in the way we are addressing these problems. From using cleaner coal technology, to increasing the miles per gallon quota’s on our vehicles. But one is often left with the distinct feeling that we simply haven’t seen a total “end to end” solution of any kind. Well, all that’s about to change in one area that’s been a big big problem for a long time, and in what can only be called a “sweeping solution” we all need to keep an eye on the Alliance Recovery Corporation.

Each year tens of millions of car, bus, and truck tires are discarded. In some areas, like Easton PA, there was a tire dump so large that it spanned acres of land, and contained hundreds of thousands of tires. Well tires and rubber products are a landfill nightmare. Not only did they use up precious oil to create the tire, once discarded no one wants them. They have a habit of “coming to the surface” in landfills and not disintegrating for years on end. In most areas, you have to pay a special “discard” tax when you dispose of your tires at the auto center. There is just no one who wants them.

Alliance Recovery wants them. Alliance’s scientists have developed one of the most ecologically sound ways of getting rid of these tires and other rubber products ever devised, and when they are finished with the tire, not only is there absolutely no waste left over, they’ve recovered oil, generated power, removed CO2 from the air, created oxygen and grown foodstuffs. Now that’s an eye opening statement, yet it’s fundamentally sound. In other words, it works.

How does one go from old tractor trailer tires, to generating power? To simplify the concept, Alliance sets up infrastructure for municipalities and towns across the region to take in the old tires and gets paid a disposal fee or “tipping fee.”  Then using their process, they break down the tires into component parts such as oil, carbon black, and steel. The oil is used to run generators that produce electricity to run the plant, and to sell back to the grid. During the process, heat is produced, which is pumped into “hothouses” that grow plant seedlings. CO2 emissions are capped off from the generators and routed into the hothouses, providing the plants with CO2, which they “take in” and then they produce oxygen. Consider the greenhouses “biological air scrubbers”. Co2 goes in, which feeds the plants, and out comes clean oxygenated air.

But it’s not just enough that Alliance can get paid for the power they generate. They get paid for selling the component parts of the tire too. Carbon black for instance is used in industry, and some 8.4 million metric tons were consumed in 2006. Alliance believes they will produce some 14 million pounds per year. Most tires today have steel belts, and all that steel becomes recycled as material to create new products. Even the plants in the Carbon scrubbing greenhouses can be sold off as cash crops as they mature.

Every large metropolitan region has the nightmare of “tire dumps” on its agenda. Alliance is the first truly “end to end” solution that removes the tires from the environment, and leaves nothing of waste behind. Nothing. If that wasn’t enough, and it is, but along with removing all the waste material, they’ve gone full circle to produce salable materials, and removed greenhouse gasses in the process. There’s not an environmentally conscious person in America who wouldn’t consider that as an amazing solution to a horrid situation.

As Alliance Recovery Corporation continues to forge ahead with its plans to open its first waste-to-energy plant in Salem New Jersey, investors keen on locating developmental stage companies with a genuine future ahead of them, need to look at this process. When you evaluate a company you have to ask certain specific questions. Questions such as “is there a need?” Here of course the answer is yes, there’s a tremendous need. Secondly, does the technology work? Once again the answer is yes. Will the need continue? The answer is obvious. There’s only so much oil and it becomes pricier every day. The need to remove garbage from the environment becomes more important every day. Producing energy from pure waste, and doing it in an environmentally sound manner, that produces salable byproducts? That’s a winning combination, and one that bears careful investigating by savvy investors.

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