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.
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SOURCE: Emerging Growth LLC