As PET bottle waste builds up around the world, more Governments are introducing recycling programs in an effort to incentivise citizens to recycle. Kenya has become the newest of these, engaging Authentication and consumer engagement technology group YPB Group (ASX: YPB) for tech that can be utilised for a recycling program.
YPB has secured a 3-year Master Service Agreement (MSA) with Ecocan Recycling Company, marking a transformative step towards sustainable waste management in the region.
The agreement is set to generate annualised revenue exceeding $800,000, contingent upon the full rollout of up to 80 million authentication codes per year. Ecocan, established to facilitate beverage packaging, waste collection, and processing through a vending deposit return scheme, will leverage YPB’s technology to mark individual beverage containers at the bottling stage using ProtectCode.
The heart of Ecocan’s solution lies in its Reverse Vending Machine (RVM) technology, designed to incentivise consumers to return beverage containers for value redemption. By integrating YPB’s ProtectCode, the RVMs can accurately authenticate and record serialised codes, mitigating fraudulent redemption attempts and providing data insights to optimise the recycling chain.
“Beverage container pollution is a major problem throughout the developing world, but value redemption schemes have been hampered by the inability to ensure redemption integrity,” said YPB CEO, John Houston.
The innovative solution offered by YPB not only tackles this core problem but also opens up new avenues for sustainable waste management across Africa. Houston highlighted the potential for a burgeoning market in beverage container recycling, underscoring the broader impact of YPB’s technology beyond Kenya.
Ecocan’s commitment to enhancing recycling infrastructure aligns with YPB’s broader vision of leveraging technology for social and environmental good. The company’s ProtectCode technology, coupled with its modular library of solutions, underscores its ability to adapt and innovate rapidly to address pressing global challenges.
Martin Ross, Chief Operating Officer of YPB Group, spearheaded the development of this tech solution, reflecting the Company’s dedication to driving positive change through technological innovation.
As Africa grapples with mounting environmental concerns, partnerships like the one between YPB and Ecocan offer a beacon of hope for sustainable development. By harnessing the power of technology, these companies are not only reducing waste but also paving the way for a cleaner, greener future for the continent and beyond.
For the year ended 31 December 2023, YPB reported $678k revenue which represented a 22% increase on the previous year, albeit admittedly a disappointing result by the Board.
Notwithstanding the underperformance, YPB advanced toward profitability with a further reduction in operating cash loss. The net operating loss for the year adjusting for non-operational or non controllable items for the year improved 21% to $2.8m and was confirmed by a reduction in net operating cash burn to $2.1m, a 26% improvement.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, bloodstock enthusiast and former Analyst.
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