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The final sub-vertical focus area for Ironwood is specialty waste, which targets waste streams that are outside the typical MSW and C&D handled by traditional haulers and are not accepted by landfills. The continued generation of hazardous and non-hazardous industrial waste, driven by growth and structural changes in industrial output, requires specialized collection and disposal to meet EPA guidelines. Additionally, the growing healthcare consumption within the economy greatly impacts demand for nonhazardous waste handling and disposal. Hazardous waste treatment and disposal has recovered from previous lows during the pandemic and benefits from stronger pricing power due to a dearth of disposal outlets and stringent regulatory requirements. The waste-to-energy segment of this sub-vertical has benefitted from a shift to green energy, which has been further advanced by the 2022 Inflation Reduction Act providing funding and tax incentives to accelerate the transition to a clean energy economy.
Some examples of Ironwood's prior experience in specialty waste through previously exited investments include i) Denali Water Solutions (Denali), a provider of wastewater and environmental recycling and disposal services in the United States, performing daily organic waste collection, processing, recycling, and disposal for municipal, industrial food processing, and downstream industrial customers, and ii) VLS Recovery Services (VLS Environmental Solutions), a provider of customized waste processing solutions for non-hazardous industrial and commercial waste, including landfill diversion and sustainability programs, solidification of liquid waste, recycling, and wastewater treatment.
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