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BioLargo Readies Its Disruptive Water Treatment Technology For 2016 Commercialization

BLGO, KEGX, SBLK

REDONDO BEACH, CA / ACCESSWIRE / October 29, 2015 / On August 17th, an audience of 30 experts from industry, academia, government, and finance gathered at the University of Alberta for the unveiling of the biggest breakthrough in water treatment in decades. Data from over 100 studies was presented by a team of researchers that demonstrated BioLargo's (OTC: BLGO) AOS Filter/Reactor disinfected water more than 100 times more effectively, and greater than 10 times faster than all known competing technologies. The studies also confirmed that the AOS Filter required less than 1/20th of the energy of the closest competitor. Researchers call the results "unprecedented".

Interview with BioLargo CEO - Dennis Calvert

Additionally, the AOS Filter dismantles difficult contaminants such as napthenic acids from actual field samples of oil sands "produced water" as well as 1,4 dioxane, a solvent related to industrial production. The AOS Filter also manages aeromatics, a common by-product of oil and gas production. In fact, the EPA lists over 100 troublesome contaminants and BioLargo's AOS Filter looks like the best technology in the world to manage these problems. According to Ken Code, BioLargo's Chief Scientific Officer, "The EPA has 133 listed problems, and our AOS Filter is the most cost effective solution known to tackle these contaminants."

Walter L. Schindler, a Strategic Advisor to BioLargo, a pioneer in clean tech investing, and the founder of Sail Capital Partners, commented, "This conference was an exciting experience for those of us committed to sustainability in new water technology. All day long, we heard scientists present the consistent results of their tests of the BioLargo water technology, which validated the extraordinary speed, high impact and low energy consumption of the path-breaking innovation."

BioLargo spent almost a decade developing their lowest cost, highest impact water treatment technology, and has built hundreds of units that consistently prove that it works better, faster and cheaper than any other known technology. With proof of concept complete, patents issued, and the most recent development of the first generation AOS Filter/Reactor all in the rear view mirror, BioLargo is busy gearing up to commercialize their breakthrough invention in 2016. Management is already in discussions with potential users from the Oil & Gas industry, the Maritime Industry, and the Food Industry, and tells us that early exploratory discussions are underway with potential partners to tackle the home drinking water and emerging nations drinking water needs as well.

Capital required to build the prototypes to meet users specific needs is now finding its way to BioLargo through private investment and multiple grants from the Canadian government. BioLargo recently announced, "We just completed a $1,000,000 capital raise and restructured our short-term debt into long term and mandatorily convertible debt, which will convert to equity on its terms in the future. We also received Grants and financial awards to advance our AOS filter to commercialization that exceed $1,000,000 and counting with many more in the pipeline." With commercialization so close at hand, attracting additional investment capital should be straightforward.

BioLargo is organizing its first pilot in the poultry processing industry, working with a major poultry producer in Canada, and has been invited to apply for an industrial partnership grant to finance the pilot. The company is refining a new design for the AOS Filter with sufficient scale to meet this challenge. As a result of the technical symposium at the University of Alberta last August, BioLargo's discussions with potential strategic partners are accelerating.

The AOS Filter is proven carbon technology that is combined with the element Iodine in conjunction with electrolysis to produce the most powerful oxidation rate ever witnessed. BioLargo plans to build units tailored to specific needs by only stacking units in parallel and in series to control the flow rate. All of the components required for the AOS Filter are readily available and cost very little resulting in very large gross profit margins to BioLargo.

Some potential uses for the AOS Filter include cleaning the enormous amounts of toxic wastewater produced from oil sands production and fracking; cleaning the toxic wastewater produced in nearly all mining operations; sterilizing/disinfecting the Ballast Water in large maritime vessels that is known to cause environmental damage; disinfecting and decontaminating potable water in municipal water systems; providing clean and safe, affordable water for third world nations; cleaning pesticides from water used in agriculture so that it is safe to return to the earth; cleaning the massive amounts of water used in oil refineries and electric power plants; reducing pathogens in the food supply; and disinfecting and decontaminating potable water as it flows into residences.

Star Bulk Carriers Corp. (NASDAQ: SBLK), a shipping company, provides seaborne transportation solutions in the dry bulk sector worldwide. Its vessels transport various bulks, which include iron ore, coal, and grain, as well as bauxite, fertilizers, and steel products. As of April 21, 2015, the company owned 70 dry bulk vessels. The Global Water Intelligence Report published a report claiming the International Maritime Organization will be requiring all vessels over 400 gross tons to install U.S. Coast Guard approved Ballast Water Treatment Systems that are estimated to cost about $750,000 each. Star's 70 vessels could be in for a $52,000,000 investment when the law is likely to go into effect later next year.

A recent article, "International Maritime Organization Mandate Spawns $50B Dollar Clean Water Tech Opportunity" published by CleantechIQ mentions the BioLargo AOS Filter as the best solution to the new IMO requirement. It is a more effective sterilization/disinfectant than UV or chlorine and it costs less and uses less energy. Because the AOS Filter is simple and inexpensive to build, it is expected to save the maritime industry billions of dollars in capital costs. It is also expected to save maritime operators even more over the long haul in operating costs. To put this in perspective; a tanker carrying 25 million gallons of ballast water is the equivalent of about 75 acre/feet that has to be processed on each voyage. At the lowest cost of $100 per acre/foot for energy costs to operate the UV or electro-chlorination systems, that equals close to $7,500 per trip.

On the other hand, the AOS Filter uses so little energy that the energy cost to process one acre/foot at less than 1/20th would be in the $375 range or less, per voyage, versus $7,500 for the cheapest system and most likely much higher. If a vessel with this much ballast water makes 30 voyages per year, operating costs for energy to power the AOS Filter would be less than $11,250 versus a minimum of $225,000 for competing systems. The energy savings alone leaves quite a bit of savings to help generate a rapid return on investment for the customer.

Key Energy Services, Inc. (NYSE: KEG) operates as a well servicing contractor in the United States and internationally. In addition to many services, Key offers disposal for the problematic flowback water from fracking that can typically cost about $.21 per gallon depending on region and a number of other variables. At 42 gallons per barrel, that equals a disposal cost of $9 per barrel of oil. With oil selling at under $50 per barrel, the disposal cost is suddenly a huge factor in profit or loss for the operator. On top of the high disposal cost, the operator has to also pay for about 4 gallons of water for each gallon of oil that is extracted. Sanchez Energy Corporation (NYSE: SN) and hundreds of other similar companies face the same high water and disposal costs.

BioLargo's believes its AOS Filter can save drillers and operators like Key Energy and Sanchez Energy substantial costs and even with today's low oil prices, may get them back to profitability. The AOS Filter can clean up the flowback water and then reuse it or recycle it for the next operation and so on. The industry often relies upon the controversial practice of disposing of contaminated water by injecting it into disposal wells. This practice of using disposal wells is under increasing scrutiny by regulators. The AOS Filter could be an economically viable and sustainable solution to this huge problem. Low oil prices, high disposal costs, and the lack of available water in many locations, should put the AOS Filter in big demand in the near term.

In 2013, Goldman Sachs estimated the size of the water treatment industry at over $300 billion. Continuing high levels of worldwide pollution and a persistent global drought are converging to drive global demand for cost-effective water treatment to levels that are likely to greatly exceed Goldman's estimated $300 billion. With ownership of the already proven, lowest cost, highest impact water treatment that is on the verge of commercialization, and a very large worldwide demand for clean water, BioLargo is excitedly looking forward to solving one of the world's greatest problems by, "Making Clean Water Affordable."

BioLargo, Inc., is a "pure play" investment opportunity with exceptional leverage in the water treatment industry. The company expects to be commercializing their AOS Filter in 2016 as shareholders look forward to being rewarded with early sales and exceptional potential.

Legal Disclaimer:

Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://secfilings.com/Disclaimer.aspx.

SOURCE: Emerging Growth LLC



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