A silent revolution is brewing within Perma-Fix Environmental Services (PESI), a company focused on environmental and technology solutions. While market attention centers on their projects at Hanford and grouting technologies, a potent, patent-pending technology named Perma-FAS is emerging, ready to position the company within the $100 billion PFAS destruction market.

PFAS, or "forever chemicals," are persistent pollutants that pose significant threats to our environment and health. Current methods for addressing PFAS contamination, like incineration and deep well injection, have drawbacks, including concerns about incomplete destruction and potential for environmental contamination. Perma-FAS, however, offers complete destruction of PFAS with no harmful byproducts.

Although Q1 2024 results showed a temporary revenue decline, the company's forward-looking statements highlight a promising future driven by Perma-FAS. Pilot plant testing of Perma-FAS revealed a remarkable 99.9999% destruction rate, exceeding regulatory requirements.

"We believe these headwinds are now largely behind us. And as things normalize, we remain confident in getting back to and surpassing our business-based goal of $25 million in revenue per quarter," stated Mark Duff, President and CEO of Perma-Fix, during the Q1 2024 earnings call."

Major customers are already showing strong interest in Perma-FAS, sending samples for validation. Perma-Fix conservatively projects $1 to $2 million in Perma-FAS revenue for 2024, but this is likely a cautious estimate, as the company anticipates a significant ramp-up in 2025.

Projected Perma-FAS Revenue Growth

This chart illustrates the potential revenue growth for Perma-FAS based on conservative estimates.

The potential of Perma-FAS is underscored by 3M's recent $10 billion settlement for PFAS contamination. This settlement alone highlights the scale of the PFAS problem and the demand for effective solutions. As regulations tighten and enforcement actions increase, the market for Perma-FAS is expected to expand rapidly.

Perma-Fix's initial operational system, launching in September, can handle approximately 1,000-gallon batches up to three times a day, potentially processing 90,000 gallons per month. With a hypothetical price of $10 per gallon, this single unit could generate $900,000 in monthly revenue. Scaling this across the company's existing network of treatment plants, and considering soil and biosolid applications, the revenue projections become substantial.

Perma-Fix Financial Highlights

The following table presents key financial data for Perma-Fix, extracted on June 17, 2024.

Perma-Fix appears to be on the verge of unlocking a billion-dollar opportunity with Perma-FAS. While the market focuses on Hanford and grouting, the silent PFAS revolution is quietly unfolding and might be the defining factor in Perma-Fix's future. This company, which started as a small business in 1991 with $1.1 million in total assets, is now poised to disrupt a massive market with groundbreaking technology. As the PFAS destruction market heats up, Perma-Fix is well-positioned to be a leader in the industry.

"Fun Fact: The term "forever chemicals" is used to describe PFAS because they don't break down in the environment, persisting for generations."