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$ACTHF Aduro Clean Technologies (CSE: ACT) (OTCQB: ACTHF) (FSE: 9D50) is a Canadian developer of patented water-based technologies to chemically recycle plastics and transform heavy crude and renewable oils into feedstocks and higher-value fuels:
Unique Secret Sauce: The technology and process are a major shift from traditional methods used today and provide significant environmental, operating, and financial advantages over traditional methods. The next-generation process employs low temperature, low value catalyst and low-value organic hydrogen donor (originated in bio-based material) to promote carbon-carbon bond session, the reaction is activated by the agency of water.
One Platform with 3 Verticals: Using the same platform and technology, Aduro has currently applied the HydrochemolyticTM technology to 3 major markets, (i) to chemically recycle waste plastics; (ii) convert heavy crude and bitumen into lighter, more valuable oil; and (iii) transform renewable oils into higher-value fuels or renewable chemicals. The technology can also successfully operate on waste rubbers (car tires), a huge industry sector not yet fully investigated, waste lubricants, and engine oils. Strong IP: The next generation, trademarked HydrochemolyticTM technology, has 7 patents. The Company has spent over USD50M building their IP and it is likely worth multiples of that right now.
Extensive R&D: 10 years of R&D to perfect workflows and processes and to expand commercial applications to include Heavy Oil, Plastics, and Renewable Oils. Throughout this period, the technology has been rigorously reviewed and tested internally and externally by various industry leaders. After ensuring the technology and commercial applications are scientifically sound and its IP is well protected, the company is advancing, full speed ahead, to scale its applications and move to the pilot stage. Independent 3rd Party Validation: The HydrochemolyticTM technology has been independently reviewed and validated by a reputable third party, Dr. Paul Charpentier. Large Addressable Market: Collectively across the currently established verticals, the Company has identified a +USD850Bn total addressable market (excluding waste rubber opportunities and other future applications). With over 8 billion tonnes in accumulated plastic waste to date and around 350M tonnes/year of additional waste plastic being produced, Aduro can justify a multiple billion valuation in just handling 1M tonnes/year of that plastic waste, primarily that less than 10% of waste plastic today can be recycled using the existing technologies.
Secured collaborations & Advanced Discussions: Several collaborations have been secured to date, with four announced partnerships leading to pilots in Canada (Switch Energy SW and Propsera Energy $PEI) and the Netherlands (Brightlands Chemelot) and worldwide with Shell $SHEL. Furthermore, the Company has several advanced discussions with key organizations to enter into paid research agreements as the first step towards potential pilot programs across the globe.
Simple Equipment & Infrastructure: The secret sauce is the chemistry and workflow. The real innovation is not in a unique reactor design or special equipment but rather the chemistry and refined process developed by Aduro over 10+ years. Accordingly, the HCT platform can be deployed anywhere globally with locally sourced equipment, allowing for speedier scalability. Often using readily available, locally sourced sources of either catalyst as is the case with bitumen or an organic hydrogen donor, as is the case with renewables and waste plastics, the approach speaks to the potential to adapt the process to a particular sector or even specific customer needs. Versatile & Highly Configurable Platform: A highly configurable process, tunable to varying scales of operations, allowing for positive economics for smaller processing units. This key differentiator changes the dynamics of the industry in line with current market shifts toward “Extended Producer Responsibility” and significantly increases the addressable market.
Valuation: The plastic waste vertical alone, HPU, would justify a few multiples to the current valuation of Aduro at its current stage and would justify billions in valuation once Aduro reaches the commercial stage with multiple partners. The current landscape of technologies that improve the common Thermal approach, such as PureCycle, Mura and Licella are trading or have raised money in public/private at a USD1Bn+ valuation, and none are commercial as of now (yes, none of these make any meaningful revenue nor free cash flow). The marketplace is so massive that 100 Aduro’s can exist without worrying about competition.