A new investment opportunity has hit the market for clients that have an interest in sustainability.
Initial Hygiene (formerly Pink Hygiene) is backing a new absorbent hygiene waste (AHW) recycling technology from nappy and pad recycling experts, Relivit. They expect the partnership to unlock approximately $120m worth of savings.
Relivit’s managing director Mark Dunn says that aside from the environmental benefits, it is also a very viable business.
“By recycling nappies, sanitary pads and incontinence pad waste, which currently costs Australian businesses and councils approximately $60m to bury in landfill each year, businesses and councils are able to reduce both the environmental and financial impact of this AHW significantly,” said Dunn. The other $60m comes from the value of the materials currently being wasted.
The company is currently looking to raise $400,000 working capital through the Australian small scale offerings board so they can complete everything they need to do before going back out to the market to raise construction finance, which will be in the order of $6-8m.
Dunn says that according to preliminary figures, they should be able to provide investors with an internal rate of return on their money in excess of 30%.
Being first to the market with this sort of technology provides them with a distinct advantage because they can sign up commercial waste streams now, says Dunn. A million dollars’ worth of contracts have already been signed by the aged care sector, and he says that trials in the UK have shown the success of the system.
The technology is expected to be in even higher demand as the population ages and grows, and the recycled plastics and wood fibres from AHW can be used to make products such as:
Park benches, tables and chairs
Wheel stops and speed humps
Moulded cardboard products and fine paper
Pet bedding and pet litter
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