Forever chemicals cleanup feasible, costly, and complex
Bloomberg Intelligence
Tougher US federal limits on PFAS, also known as “forever chemicals,” will prompt potentially exposed parties like manufacturers, municipalities and utilities to address liability risks. Complying with the rules and cleaning up contamination could require $300 billion of additional spending by 2040, nearly $200 billion of which may flow to environmental companies. Engineering firms like Aecom and Jacobs, waste processors including Clean Harbors and Veolia and water solutions providers such as Xylem could gain revenue from PFAS remediation.
Key findings
- EPA Rules to Drive Action: The EPA in April finalized drinking-water limits for six PFAS, which may prompt utilities and municipalities to boost filtration. Designation of select PFAS as hazardous substances could speed cleanup and clarify acceptable remediation methods. A Supreme Court decision reducing deference to regulators might bolster challenges.
- Environmental Industry Well Positioned: PFAS cleanup could generate 10-15% of environmental industry revenue by 2027 from less than 1% in 2023. The water supply — among the most prominent paths for exposure — could make up two-thirds of remediation spending, half of which may be for upfront expenditures. Costs for solids might be more evenly distributed over time but less predictable as they can be more closely linked to discrete cleanups.
- Treatment, Disposal Assets Offer Edge: Engineering firms offering consulting, waste companies assisting with cleanup and equipment suppliers providing filtration systems are in line for the bulk of PFAS-related work. Companies with treatment and disposal assets may profit most, given the high margins for waste-processing services.
- Consumers to Pay Costs: Bloomberg modeling finds that federal funding programs like the 2021 Infrastructure Investment and Jobs Act plus legal settlements with PFAS manufacturers including 3M and DuPont could cover less than 20% of total cleanup and prevention costs. Much more may have to be recovered through increased water, sewer and sanitation bills.
- Array of Products Affected: PFAS is used in a wide range of products, from cookware to firefighting foam. Though particularly harmful long-chain forms are being phased out, newer variations remain in production yet might not solve the problem. Finding effective solutions presents an opportunity.
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