Hudson Technologies, Inc. (NASDAQ: HDSN), announced that on October 16,
2014 the Environmental Protection Agency (EPA) Administrator Gina
McCarthy signed the final rule pertaining to allowances for virgin
production of HCFCs, primarily R-22, for 2015 through 2019. The final
rule, which was the lowest proposed approach, provides for virgin R-22
allowances of approximately 22 million pounds in 2015, 18 million pounds
in 2016, 13 million pounds in 2017, 9 million pounds in 2018 and 4
million pounds in 2019, with a final ban on all production effective
January 1, 2020.
Kevin Zugibe, Hudson's Chairman and CEO, stated, "The EPA’s final rule
provides much needed clarity to our industry and delivers a
significantly more aggressive step down approach for the phase-out of
R-22, which we have consistently stated is the best method to achieve an
orderly phase-out of virgin R-22 and for the establishment of
reclamation as the principal, and ultimately the sole source of supply
of R-22. Under the EPA’s more aggressive approach, the 2015 allowances
of 22 million pounds represent a nearly 60% reduction from the 2014
levels. As we approach 2020 when virgin R-22 production will be fully
eliminated, the reclamation industry will become the primary provider of
R-22 to service aftermarket demand. As one of the leading reclaimers in
the marketplace, the R-22 phase-out provides a significant, long-term
opportunity for Hudson.”
The final rule will become effective on the date of publication in the
Federal Register. A pre-publication copy of the rule is available at: http://www.epa.gov/ozone/title6/downloads/CAA_Part_82A_2060_AR04_Final_Rule_Pre-pub_version_for_web_10-16-14.pdf
Mr. Zugibe continued, “Additionally, we are encouraged by last month’s
announcement from the Administration related to new executive actions to
curtail the production of HFCs, the next generation of refrigerants. We
currently reclaim HFCs and have the capabilities to reclaim the next
generation products so we are positioned to be a key player in
supporting an orderly phase out as that evolves.”
About Hudson Technologies
Hudson Technologies, Inc. is a leading provider of innovative solutions
to recurring problems within the refrigeration industry. Hudson's
proprietary RefrigerantSide® Services increase operating
efficiency and energy savings, and remove moisture, oils and other
contaminants frequently found in the refrigeration circuits of large
comfort cooling and process refrigeration systems. Performed at a
customer's site as an integral part of an effective scheduled
maintenance program or in response to emergencies, RefrigerantSide®
Services offer significant savings to customers due to their ability to
be completed rapidly and at higher purity levels, and can be utilized
while the customer's system continues to operate. In addition, the
Company sells refrigerants and provides traditional reclamation services
to the commercial and industrial air conditioning and refrigeration
markets. For further information on Hudson, please visit the Company's
web site at www.hudsontech.com.
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995
Statements contained herein which are not historical facts constitute
forward-looking statements. Such forward-looking statements involve a
number of known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Such factors include, but are not limited to, changes in the laws and
regulations affecting the industry, changes in the markets for
refrigerants (including unfavorable market conditions adversely
affecting the demand for, and the price of, refrigerants), the Company's
ability to source refrigerants, regulatory and economic factors,
seasonality, competition, litigation, the nature of supplier or customer
arrangements which become available to the Company in the future,
adverse weather conditions, possible technological obsolescence of
existing products and services, possible reduction in the carrying value
of long-lived assets, estimates of the useful life of its assets,
potential environmental liability, customer concentration, the ability
to obtain financing, risks associated with the Company’s joint ventures
which include the ability of the parties to perform their obligations
under the joint venture agreements, any delays or interruptions in
bringing products and services to market, the timely availability of any
requisite permits and authorizations from governmental entities and
third parties as well as factors relating to doing business outside the
United States, including changes in the laws, regulations, policies, and
political, financial and economic conditions, including inflation,
interest and currency exchange rates, of countries in which the joint
ventures may seek to conduct business, the Company’s ability to
successfully integrate any assets it acquires from third parties into
its operations, and other risks detailed in the Company's periodic
reports filed with the Securities and Exchange Commission. The words
"believe", "expect", "anticipate", "may", "plan", "should" and similar
expressions identify forward-looking statements. Readers are cautioned
not to place undue reliance on these forward-looking statements, which
speak only as of the date the statement was made.
Copyright Business Wire 2014