Perma-Fix Environmental Services Provides Further Updates on Patent-Pending Process for Destruction of PFAS Compounds

Rhea-AI Summary

Perma-Fix Environmental Services (NASDAQ: PESI) provided an update on its patent-pending Perma-FAS® process for destroying PFAS compounds. They've chosen ProcessBarron for the fabrication and assembly of a 1,000-gallon commercial unit, expected to begin accepting waste by Q4 2024. The system utilizes a proprietary hydrolytic destruction process operating between 100-150°C, achieving a 99.9999% destruction level. This unique system supports the EPA's new regulatory measures and addresses environmental risks associated with traditional disposal methods like deep well injection and landfilling. The partnership with ProcessBarron aims to expedite the deployment of additional units nationwide, enhancing efficiency and safety standards.

Positive

• Selection of ProcessBarron for fabrication leverages expertise to meet strict timelines and safety standards.
• Expected operational date for the commercial unit is Q4 2024, indicating progress.
• Hydrolytic destruction process achieves 99.9999% destruction level, offering superior environmental safety.
• Potential for deploying additional units, enhancing nationwide PFAS treatment capabilities.
• Process responds to new EPA regulatory measures, aligning with government objectives.

Negative

• No mention of current revenue generated from the new process.
• Potential risks if the unit fails to meet operational timelines by Q4 2024.
• Uncertainty around the cost and profitability of deploying additional units.

Environmental Analyst

Perma-Fix Environmental Services' advancement in PFAS destruction technology could be a significant step forward in addressing one of the most pressing environmental issues today. PFAS compounds, often referred to as 'forever chemicals,' are notoriously difficult to break down and are linked to various health issues. The company's focus on a process that achieves a 99.9999% destruction level is noteworthy.

Regulatory implications are another key consideration. With the U.S. EPA's new enforcement measures, Perma-Fix could be well-positioned to capture a growing market for PFAS waste treatment. This alignment with regulatory goals could drive demand and support long-term revenue growth.

However, investors should also consider the risk factors. The technology is still pending patent approval and any delays or challenges in patenting could impact the company's competitive edge. Additionally, the reliance on ProcessBarron for fabrication introduces external dependency risks.

Financial Analyst

From a financial perspective, the timeline for commercial operations is crucial. The promise of having the Perma-FAS unit operational by Q4 2024 suggests potential revenue realization starting late this year or early next. Investors should watch for any delays in this timeline, as they could impact short-term financial performance.

The partnership with ProcessBarron is a positive signal, indicating a strategic move to leverage external expertise for efficiency and scalability. However, it's important to monitor the costs associated with this partnership and ensure it does not erode profit margins.

Long-term, the ability to deploy additional units efficiently across other facilities could translate to scalable revenue growth. The market for PFAS destruction is likely to grow, driven by regulatory pressures, positioning Perma-Fix for sustained financial performance if they can execute well.

Market Research Analyst

Looking at market dynamics, the demand for PFAS destruction technologies is expected to increase as regulations tighten and public awareness grows. Perma-Fix's novel approach could differentiate it within the market, potentially allowing it to secure a strong market position.

However, the market adoption rate is an important factor. The company's ability to educate potential clients about the benefits and efficacy of their system will be critical in driving adoption. This will likely require sustained marketing and outreach efforts, which could impact short-term profitability but support long-term market penetration.

Additionally, the company's claim of achieving a 99.9999% destruction rate is a strong selling point but will need to be validated through real-world performance to convince potential clients and regulatory bodies.

Selects ProcessBarron for fabrication and assembly of the new commercial unit

Commercial unit on track to begin accepting waste in the second half of 2024

ATLANTA, June 12, 2024 (GLOBE NEWSWIRE) -- Perma-Fix Environmental Services, Inc. (NASDAQ: PESI) (the “Company”) today provided an update on its patent-pending new process, Perma-FAS®, for the destruction of per- and polyfluoroalkyl substances (PFAS), including design specifications and the Company’s selection of ProcessBarron for the fabrication and assembly of its new Perma-FAS commercial unit. The system is a 1,000 gallon unit and is expected to be fully operational and accepting commercial waste for destruction by Q4 of this year.

Mark Duff, President and CEO of Perma-Fix, commented, “We are making rapid progress on the design and fabrication of our first Perma-FAS commercial unit, which we expect to be operational later this year. Towards this end, we are delighted to partner with ProcessBarron, which brings decades of experience constructing custom-engineered industrial solutions. We believe their track record and efficiency on such projects lends itself well to our strict timelines and safety standards, given the tremendous demand we have witnessed since first announcing our new system. Our relationship with ProcessBarron leverages their decades of experience in the application of proven industrial innovations to enhance performance of our initial system, while providing access to their team of engineers for system optimization. Following startup at our first facility, this relationship provides the ability to deploy additional units at our other facilities with increased efficiency, while reducing delivery schedules to support accelerated treatment activities to address nationwide PFAS markets over the next few years.”

Dr. Louis F. Centofanti, founder of the Company, Executive Vice President of Strategic Initiatives, and inventor of the technology, stated, “The latest regulatory and enforcement measures implemented by the U.S. Environmental Protection Agency (EPA), including the new CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) Enforcement Discretion Policy, has created a renewed sense of urgency for waste generators. Our process is unlike traditional disposal methods for PFAS-contaminated materials, such as deep well injection and landfilling, which pose substantial environmental risks, including potential groundwater contamination. Ours will be the first known sealed, chemical destruction unit commercially operating in a fixed facility that can accept and destroy PFAS to acceptable levels in the U.S. We believe the unit will be able to achieve an impressive 99.9999% destruction level. We have been sharing information with the EPA, including plans to begin commercial operation of our novel treatment technology in the coming months, and look forward to supporting their near-term goals, as well as their long-term mission to rid our nation of these dangerous chemicals.”

The system uses a proprietary hydrolytic destruction process that is highly specific to PFAS compounds. It operates between 100-150 degrees Celsius and breaks down the carbon-fluorine chain, resulting in mineralization, with just calcium fluoride, water, and other non-hazardous organic byproducts that can be recovered and reused or resold.

Duff concluded: “I would also like to extend my gratitude to the team at Perma-Fix, including Dr. Centofanti, the chemists, and the engineers, who have all worked tirelessly to develop the commercial system in a timely and cost-effective manner. We had previously applied for patents and are planning additional patent applications surrounding this technology to address soils and filter media that we believe will provide us long-term protection on this groundbreaking intellectual property.”

Commercial and government entities interested in speaking to a Perma-Fix representative about the new PFAS destruction process may contact the Company at sales@perma-fix.com.

About Perma-Fix Environmental Services
Perma-Fix Environmental Services, Inc. is a nuclear services company and leading provider of nuclear and mixed waste management services. The Company's nuclear waste services include management and treatment of radioactive and mixed waste for hospitals, research labs and institutions, federal agencies, including the U.S Department of Energy (DOE), the U.S Department of Defense (DOD), and the commercial nuclear industry. The Company’s nuclear services group provides project management, waste management, environmental restoration, decontamination and decommissioning, new build construction, and radiological protection, safety and industrial hygiene capability to our clients. The Company operates four nuclear waste treatment facilities and provides nuclear services at DOE, DOD, and commercial facilities, nationwide.

Please visit us at http://www.perma-fix.com.

This press release contains “forward-looking statements” which are based largely on the Company's expectations and are subject to various business risks and uncertainties, certain of which are beyond the Company's control. Forward-looking statements generally are identifiable by use of the words such as “believe”, “expects”, “intends”, “anticipate”, “plans to”, “estimates”, “projects”, and similar expressions. Forward-looking statements include, but are not limited to: the unit is expected to be fully operational and accepting commercial waste for destruction by Q4 of this year; we have the ability to deploy additional units at our other facilities; ours will be the first known sealed, chemical destruction unit commercially operating in a fixed facility that can accept and destroy PFAS to acceptable levels in the U.S.; the unit will be able to achieve an impressive 99.9999% destruction level; and plans for additional patent applications surrounding this technology that we believe will provide us long-term protection on this groundbreaking intellectual property. These forward-looking statements are intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. While the Company believes the expectations reflected in this news release are reasonable, it can give no assurance such expectations will prove to be correct. There are a variety of factors which could cause future outcomes to differ materially from those described in this release, including, without limitation, future economic conditions; acceptance of our new process by the public; granting of the patents which are subject to review by the appropriate governmental authorities; industry conditions; competitive pressures; our ability to apply and market our new technology; acceptance of our new technology; and the “Risk Factors” discussed in, and the additional factors referred to under “Special Note Regarding Forward-Looking Statements” of our 2023 Form 10-K and Form 10Q for the first quarter ended March 31, 2024. The Company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that bear upon forward-looking statements.

Contacts:
David K. Waldman-US Investor Relations
Crescendo Communications, LLC
(212) 671-1021

Herbert Strauss-European Investor Relations
herbert@eu-ir.com
+43 316 296 316

FAQ

What is Perma-Fix Environmental Services' new process for destroying PFAS compounds?

Perma-Fix's new process, Perma-FAS®, is a patent-pending hydrolytic destruction method that breaks down PFAS compounds at 100-150°C, achieving a 99.9999% destruction level.

When will Perma-Fix's new commercial unit be operational?

Perma-Fix expects its new commercial unit to begin accepting PFAS waste by Q4 2024.

Who is Perma-Fix partnering with for the fabrication of their Perma-FAS commercial unit?

Perma-Fix has selected ProcessBarron for the fabrication and assembly of their new commercial unit.

How effective is Perma-Fix's new Perma-FAS process in destroying PFAS compounds?

The Perma-FAS process is reported to achieve an impressive 99.9999% destruction level of PFAS compounds.

What are the environmental benefits of Perma-Fix's new PFAS destruction process?

Perma-Fix's process provides a safer alternative to traditional methods like deep well injection and landfilling, minimizing environmental risks such as groundwater contamination.