Eco Logic bid to destroy U.S. toxic weapons gets a boost
SUSANNE CRAIG
Tuesday, October 10, 2000
NEW YORK -- Toxic waste destroyer ELI Eco Logic Inc. has completed a critical step in its quest to become one of at least two companies charged with destroying the huge U.S. stockpile of chemical weapons.
The Rockwood, Ont.-based company is expected to announce today it has successfully completed what is known as the "test and demonstration" stage of the U.S. Assembled Chemical Weapons Assessment (ACWA) program administered by the U.S. Department of Defence.
Eco Logic expects to be invited to the next phase of the program, where there will be more testing and the government will investigate the cost of each of the proposals still on the table.
The U.S. government has allotted approximately $50-million (U.S.) to pay for this phase, which will be divided among the three companies that have made it to this point.
Eventually, Eco Logic hopes to become one of the companies picked to destroy the U.S. chemical weapon stockpile, a process that could begin as early as 2002. It is estimated that by the time the job is finished, the United States will have spent between $12-billion and $13-billion destroying its stockpile.
"We have had several bites at the apple. They [the U.S. government] have given us several opportunities and every time we have satisfied the entire range of what they gave us at that event," said Dr. Fred Arnold, Eco Logic's vice-chairman and chief executive officer.
Today's announcement is a significant development for Eco Logic, which has been marketing its technology to various governments and companies for years. It has landed a handful of smaller contracts, including four from the U.S. government, but these have done little to jump-start its sagging share price. It closed Friday at 75 cents (Canadian) on the Toronto Stock Exchange, down 10 cents.
Eco Logic owns the patent to a process that can destroy a variety of toxic substances, from mustard gas to PCBs. Most governments have opted to incinerate toxic waste, but Eco Logic's method is favoured by many agencies because it is environmentally friendly. In simple terms, the chemically based system breaks down toxic substances into non-toxic parts, such as hydrogen and methane.
In 1996, the U.S. Army was mandated by Congress to investigate environmentally friendly ways to destroy chemical weapons. Eco Logic made contact with the U.S. government and has subsequently won several contracts aimed at demonstrating its technology.
Along the way, it has teamed its know-how with companies that specialize in other areas in order to provide a total solution for the army. It went through this last round of testing with engineering firm Foster Wheeler Corp., which will supply supercritical water oxidation, a process that neutralizes chemical agents.
Mr. Arnold said it is possible that all three companies that have made it to this stage will be picked to take part in the destruction of the chemical weapons. Two U.S. teams are still in the running for the same contract; a group led by General Atomics' Advanced Technology Group of San Diego and a team including Parsons Corp. of Pasadena and Honeywell International Inc. of Morristown, N.J.
In addition to its quest to win contracts from the U.S. military, Eco Logic has landed work to destroy chemical waste in countries such as Australia and Japan.
Eco Logic went public in 1994 at $3 and its stock soared as high as $22.75 in 1995, but it has been all downhill since then.
Mr. Arnold was hired in early 1998 as chief executive officer to replace Doug Hallett, the company's founder. Later that year it hired an investment bank to explore its strategic options but in the end decided against selling itself.
The company admits it was partly responsible for its stock slide, talking up contracts that sometimes did not materialize. Mr. Arnold also feels the market doesn't fully understand the technology his company offers. |
