- Industry expert validates unprecedented effectiveness of BioLargo’s AOS Filter in disinfecting highly contaminated water.
- “The potential applications of the BioLargo AOS filter in the food industry could be endless,” says Professor Lynn McMullen at the University of Alberta Department of Agriculture and Food Science.
- University of Alberta researchers validate that the AOS Filter rapidly dismantles, destroys and removes soluble organic contaminants (acids, sulfurs, solvents, hydrocarbons, etc.) from actual oil sands field samples.
- The AOS Filter system decontaminates water in seconds versus the hours required by current technologies, and at only 1/20th the energy/cost.
In a recent press release, University of Alberta Professor, Lynn McMullen, evaluated the AOS Filter results and commented, “The AOS Filter technology could be highly efficient in solving food safety problems and may be applied to improve food quality with the potential to improve storage life. The potential applications of the BioLargo AOS filter in the food industry could be endless — from primary commodities to finished food products.”
She further explained, “At the foundation of the AOS Filter is its efficiency in generating a highly oxidative state. The data supports its potential to accomplish high-level disinfection that can be useful in multiple markets including food processing and agriculture production. Extremely high levels of performance [disinfection] were achieved during testing and we are excited to expand the work with BioLargo to other applications targeting food safety concerns.”
Professor McMullen’s comments follow on the heels of earlier validation work by the University of Alberta’s Department of Engineering for the AOS Filter’s use in eliminating soluble organic contaminants like those found in the massive oil sands tailings ponds.
Kenneth R. Code, BioLargo’s CSO, stated: “The results of the testing validate the AOS Filter’s effectiveness in decontaminating oil sands produced water (OSPW) at the Athabasca oil sands tailing ponds, demonstrate its potential in eliminating the future need for tailing ponds, and provide the basis for additional applications in multiple markets. We are pleased with these initial results and are anxious to continue our testing and advance the design phase of our project.”
How Does the AOS Filter Work?
Mr. Calvert explained, “Yes, Iodine is the broadest spectrum and most potent disinfectant known. That is common knowledge. We have taken that oxidizer – iodine, and we have combined it with well-understood technologies like carbon, filter media, ceramics or membrane technologies. What is unique about that invention is, that we have combined traditional filter media with an oxidizing technology and electricity, which then allows the device to provide an oxidation potential across the surface area of the filter media and an incredibly effective rate.”
“What that means, basically, is that we have taken a filter, and we have converted it into a reactor. So we can then operate at very high flow rates and we operate at incredibly low levels of energy. So the device features high rates of oxidation, low-power, high-speed and a continuous flow.”
“To provide a little more detail on that, one of the things that is often helpful in explaining the role of advanced oxidation is to consider how a shipyard anchor rusts over time through oxidation from the sea air. …How does that happen? As the salt air comes across the surface of the metal, it adds oxygen and it grabs (transfers) electrons and eventually, over time, it breaks down the metal, it dismantles it, and the oxidation converts that anchor into a dusty pile of post-oxidation rust. … the same reaction helps explain how fire burns wood. That same oxidation is the very mechanism of action that the role of iodine plays in all these inventions.
We have taken iodine chemistry and combined it with electrolysis and filter media so that we achieve a very high rate of oxidation at very low power levels across the surface of the filter. The net result is expected to yield unparalleled cost effectiveness.”
“What is the significance of the breakthrough then? Our proof of claim work showed that our AOS Fitler performed at greater than10 times faster, and at about one twentieth the power consumption of the closest competitor to dismantle and remove these very hard to get contaminants in a continuous flow of water. The combination of those results provide a scientific breakthrough in the way that water can be treated and managed in a continuous flow device. It is really quite a special validation and we know that the AOS Filter has a big a role to play across the entire industry.”
The Water Treatment Industry
Global demand for clean water is driving the $360 billion water treatment industry to explosive growth that is predicted to reach $1 trillion by 2020. Goldman Sachs is a leading investment banker and advisor and has convened numerous conferences and also published lengthy, insightful analyses of water and how it relates to other critical sectors of food and energy.
Goldman Sachs has advised that clean water is the next petroleum and astute investors are now looking for opportunities in this mega opportunity.
“AOS Filter” Licensing Opportunities For Industry
BioLargo is an IP (intellectual property) company and with results this strong, there may be interest in licensing the AOS Filter from the big players such as GE (GE), Veolia (VE), Dow Chemical (DOW), and American water Works (AWK).
GE offers a number of water treatment methods that produce 1.7 billion gallons of potable water every day. ZEEWEED ultrafiltration membrane technology for oil refineries allows them to reuse up to 95% of their water from recycling. GE’s membrane water treatment recycles 100 million gallons of wastewater every day for agricultural irrigation. GE’s “EDR” technology turns raw water into drinking water for metropolitan water systems. Since GE’s role in water treatment is substantial, is it likely that GE would like to have the AOS Filter advantage over their competitors?
Veolia is a world leader in delivering drinking water solutions to municipalities. Veolia uses basically the same technologies as their competitors to treat water with their Berkal, Actiflo, Multiflo, Spidflow, Filtraflo and membrane technologies. Veolia’s Opaline membrane filters are used to remove pesticides, total organic carbon, endocrine disrupters, and micro-organisms. Veolia’s water treatment technologies serve over 150 million people with technologies that are similar to the competition, therefore, Veolia may be a prime candidate for licensing the AOS Filter technology from BioLargo.
Dow Chemical Water Division is large and is estimated to treat 15 million gallons per minute. Dow’s technologies include Reverse Osmosis, Ultra Filtration, Fine Particle Filtration, Ion Exchange, Adsorbent Resins, Bio Chromatography and Electro-Deionization. Dow also delivers Reverse Osmosis Filtration for Desalination. In spite of high operating costs for their water treatment technologies, demand for DOW water treatment products is expected to remain very strong because the need is so great. Because of the perfect fit, DOW may also a strong candidate for licensing BioLargo’s AOS Filter.
American Water Works offers water and wastewater services to approximately 1,500 communities in 16 states. It operates approximately 80 surface water treatment plants; 500 groundwater treatment plants; 1,000 groundwater wells; 100 wastewater treatment facilities; 1,200 treated water storage facilities; 1,300 pumping stations; 87 dams; and 47,000 miles of mains and collection pipes.
American Water Works offers traditional filtration systems that have no significant competitive advantage over the competition; hence they may be another perfect fit for licensing BioLargo’s AOS filter system.
Investment Opportunities In Water Treatment
GE, Veolia, DOW, American Water Works are all excellent blue chip investment candidates and are all sound financially. They present little risk beyond the risk of market and general economic fluctuations that generally trend upwards but can dramatic decline from time to time. These large companies are well positioned in the water treatment industry and are expected to benefit from the enormous projected growth in coming years.
For risk tolerant investors, BioLargo is an IP company with a burn rate of about $125k per month. The company reported that cash increased from $92,457 on December 31, 2013 to $373,373 on March 31, 2014. Current Assets increased from $126,146 on December 31, 2013 to $446,459 on March 31, 2014. Current Liabilities decreased from $732, 157 on December 31, 2014 to $508,652 on March 31, 2014. The number of shares outstanding increased from 71,357,532 on December 31, 2013 to 76,409,578 on March 31, 2014 indicating the company raised capital in that period.
BioLargo has almost no debt (<$50k) and no preferred stock draining its cash flow. Like most young microcaps developing big technologies, the company has historically been light on cash, but has always been able to sustain its business since 2007 and even throughout the Great Recession of 2008/9. BioLargo is leveraging its IP with grant funding through the University of Alberta. The company has multiple profit centers and is not reliant on the AOS Filter sales, and is already reporting sales with the U.S. government and with industry partners that could grow to become significant.
At first glance, BioLargo may seem too good to be true, but a closer look reveals exciting technology that has been validated multiple times by a leading university and work is expanding. With 10 years of R & D behind them, and now, based on the recent proof of claim combined with major researchers behind them, it appears that the AOS Filter could impact the entire $360 billion water treatment industry. GE, Veolia, Dow and American Water Works have a bright future in water treatment, but for the most part, they are so big they do not have as much leverage in the water treatment business as BioLargo does. It appears that the BioLargo AOS Filter could be a cornerstone to build something significant or, a tool for a major company to expand market share. Either way, BioLargo looks like a company to watch carefully or even to accumulate shares before major news appears.
Investor Relations Email: info@BioLargo.com
Phone: 949-643-9540 x 7