From The Huffington Post:
Wholesalers from Virginia, North Carolina, Maryland and other East Coast states started sending cases of the high-alcohol, caffeinated malt beverages to MXI Environmental Services in Virginia after the U.S. Food and Drug Administration announced a crackdown on the sale of such beverages in November.
...MXI distills the alcohol from the drinks, then sells the fuel to be blended into gasoline, Potter said. It sells the aluminum cans to a recycler. Potter estimated it takes "30 days until it's back on the shelf as another beer can." It also recycles the drinks' water, cardboard packaging and shipping pallets.
"These are actually things that could go directly into a landfill or incinerator or some other waste process that's not as environmentally friendly, so I think it's a good thing," he said.
I tangled with the Loko again on New Year's Eve, and I can attest to its effectiveness as an energy source. It fueled me through five or six hours of madness before I crashed into a brick wall disguised as Shannon's couch. And here I was thinking I'd been reckless with my intoxicated antics that night; turns out I was actually being environmentally-responsible.