Hydrodec going great guns on draft US permit

Hydrodec, the "clean" oil re-refining group, has shot up this morning after announcing revenues for 2011 will come in significantly ahead of 2010.

Sales of the branded Superfine oil rose 12% in the second half of 2011 versus the first six months of the year, giving some indication of the acceleration the company is currently seeing.

There has been encouraging news from the US where Hydrodec has received a draft approval from the US Environmental Protection Agency (EPA) to treat polychlorinated biphenyl (PCB) contaminated used oil.

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There are still some loose ends to tie up with the EPA but the company is confident it will soon become a "one-stop shop" for companies to dispose of their used transformer oil.

Hydrodec also believes that it will get its "feedstock" (the dirty oil it re-refines) at low, or possibly negative, cost in the US as firms are desperate to get rid of the substance. In other words, Hydrodec may get paid for the feedstock it needs.

In Japan, the firm is experiencing delays in getting permits to build a new plant. As a result, operations are not expected to start until the beginning of 2013.

Despite the news from Japan, Hydrodec has had an excellent morning on the markets, rising 11% by 9.24am. Over the last 12 months the stock is up 46%.

BS