Clarification on Raw Material
The demand for EarthCare Property Glycol is increasing, which is a result of real estate owners becoming much more active in their sustainability work and therefore the demand of our products is growing increasingly. In order to meet this demand Recyctec requires access to raw material for EarthCare Real Estate Glycol, whichis used glycol.
A prerequisite for delivering these products is that used glycol is available to recycle. Recyctec has several different sources of raw material and is continuously searching for additional ones, both in Sweden and internationally.
For mono ethylene glycol (MEG), there is quite a lot of raw material, but for used mono propylene glycol (MPG) there is variation in availability. MPG is less harmful to the environment but more expensive to manufacture. Environmental requirements and social responsibility mean that there is a shift towards more use of MPG. MPG and MEG have durability of 3-7 years depending on the application. Recyctec operates in symbiosis with the market. Therefore, the availability of raw materials reflects to some extent the buying behavior that was 3-7 years back in time.
As demand for MPG grows, from time to time there may be a shortage of raw material. In addition to that, other factors can also affect, in 2020, for example, flying has decreased drastically, which means that fewer planes are avisaged, which reduces available volumes used MPG.
In addition, the specification for MPG is much narrower and does not allow any involvement of other glycols, while MEG allows some interference. Therefore, the requirements for handling used MPG are higher.
In order to ensure the delivery capacity of EarthCare Monopropylene glycol, the company can from time to time be forced to supplement raw material supply with fossil glycol. However, this is a temporary challenge, as more people buy MPG, over time there will be larger amounts of raw materials to recycle, and this factor will be phased out. In the company's environmental statement regarding created climate benefits, these factors are of course considered.