One of Kestrel’s competitor’s, Trek, deserves credit for the first-in-industry carbon fiber recycling program. Carbon fiber, as you know, is the state-of-the-art material used by some high-end bicycle makers to create lightweight, strong and stiff frames. The problem, and opportunity, of carbon fiber bikes are their cost – sometimes several thousand dollars. Carbon fiber technology originated in the aerospace industry, and was used first by Kestrel to create its unique bicycles. Later, manufacturer’s like Trek joined in and started producing high-end carbon fiber models.
Racers love carbon fiber bikes because they are very efficient at transferring power from the rider to the road. All things being equal, the lighter the bicycle, the higher potential maximum speed attainable, given the design incorporates the necessary strength and stiffness. Thus, top-end bicycles evolved from steel frame to aluminum, then to exotics like titanium, and finally to carbon fiber.
Besides being light and strong, carbon fiber has the virtue of being able to be shaped to the will of the bicycle maker. The opportunity to recycle scrap and reclaimed carbon fiber opened up when it was discovered that anaerobic heating of the scrap will release the binding resins, leaving behind carbon fibers ready for recycling. Trek estimates that it will recycle 54,000 pound of material each year, material formerly destined for the landfill.
Prime brokerage analyst Esther Phalin comments: “We see this as an economically viable investment due to the many uses of carbon fiber in different industries. We expect a savvy investor such as a hedge fund investing in this technology.” Trek teamed up with Materials Innovation Technology to perfect its recycling program, and other players may become involved in the sector.
Carbon fiber loses some of its previous strength each time it is recycled. This is due to the process which entails chopping the scrap into smaller pieces, which are inherently less strong. Thus, recycling is really a down-cycling technique. Virgin material might be used for aircraft and bicycles, then down-cycled to sporting goods and then again to make computer cases. It is estimated that the recycled material maintains 70% of the value of virgin carbon fiber.
It remains to be seen whether Trek will actually make money from recycling, but they deserve credit for taking environmentally responsible action. It will be interesting to see whether Kestrel and other carbon fiber frame makers follow Trek’s example and begin recycling programs of their own.