2012-04-06

2012 April 6

The Master Resource Report  2012-04-06

They were right

I remember people telling me when I was growing up that in the future companies would be mining our garbage dumps for valuable material. It appears that at least for now we may start intercepting it before it gets to the dump. Extracting the value from the collection waste stream of course make much more sense than burying it and then digging it back up again.

Based on this excerpt from Bloomberg it looks like the predictions from my youth may come true.

Waste Management Inc, the biggest trash hauler in the U.S., estimates the $12.3 billion it gets for carting off rubbish to landfills may be worth more than $40 billion a year in energy.

That’s the value of fuel and chemicals the Houston-based company estimates could be extracted from the 112 million tons of trash it collected last year if the entire waste stream was diverted from landfills, said Carl Rush, senior vice president of Waste Management’s Organic Growth unit.

Note: Clients and Advisers of Ravenna Capital Management currently hold positions in Waste Management.