Working Prototype to be Unveiled August 15
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BioLargo Inc. (OTCQB: BLGO) has spent the last several years developing its breakthrough AOS Filter that is nearing a commercial tipping point. By combining a cutting-edge carbon matrix, iodine, and electrolysis, the technology rapidly and inexpensively eliminates bacteria and chemical contaminants in water. Researchers at the University of Alberta found that it is 100 times more effective and 10 times faster than any competing technology. In addition, the operating cost of the AOS Filter is 1/20th that of any current technology.
In this article, we will take a look at the company’s march towards commercialization and what it means for shareholders and potential investors.
Showcasing an Alpha Prototype
BioLargo initially reached out to potential customers last year with its lab scale model that demonstrated functionality and design. After seeing significant interest by these parties, the company built an alpha prototype in conjunction with the Northern Alberta Institute of Technology’s Center for Sensors and Systems Integrations and NAIT’s Applied Bio/Nanotechnology Industrial Research Chair.
Management plans to showcase the alpha prototype at its upcoming technical symposium on August 15. With a full-scale, fully automated, sensor driven model in place, customers will be able to see that the technology is capable of operating on a larger scale to meet industrial demands across a number of different industries, ranging from oil and gas, to food safety, to agriculture, to mining, to municipal waste water and drinking water, to maritime, and more. The overall market for clean water is estimated to be approximately $500 billion in size, according to Bank of America analysts.
After witnessing high levels of interest at its first symposium, the company expects to see a big turnout at its second upcoming symposium. The event will kick off commercialization for the product and management hopes to form strategic alliances with attendees to commercialize the technology across many different markets.
Developing a Beta for Poultry
The next step is quickly developing a beta version of the technology that is customized to meet specific industry needs. BioLargo is already in discussions with the poultry industry where the technology can be used for process water recycling, livestock drinking water, and wastewater treatment. With over 200,000 poultry farms generating $50 billion per year in revenue, the industry requires new technologies to defend against pathogens like bird flu and salmonella.
There are many different areas where the AOS Filter could improve outcomes within the poultry industry.
First, most poultry farms provide chickens with drinking water from wells since municipal water is much more expensive. The bad news is that well water is often associated with poor outcomes for poultry, since it is frequently contaminated with bacteria and toxic chemicals. The AOS Filter is a terrific solution to this problem given its low cost, high efficacy, and versatility, and management hopes to launch its first pilot project over the near-term.
Second, many poultry processing plants use large ‘chill tanks’ to lower the temperature of chicken carcasses as they travel down the line of production. These tanks must be emptied and refilled every day due to contamination with bacteria and organic matter. The AOS Filter could be used as a highly efficacious and cost-effective way to extend the life of chill water and increase the cleanliness of the chill process, resulting in lower costs and fewer contaminants.
Numerous Other End Markets
BioLargo’s AOS Filter has broad potential that extends well past the poultry industry and into many large industries with a high priority need for affordable clean water.
In the maritime industry, the International Maritime Organization and U.S. Coast Guard recently imposed regulations for the treatment and discharge of ballast water with the hope of cleaning up the world’s oceans. An estimated 65,000 ships must be fitted with approved systems over the next five years and the cost of each system exceeds $750,000. That represents a $50 billion price tag over the next few years for meeting new regulations. BioLargo estimates that its AOS Filter could address these needs at a significantly lower cost and with far more efficacy than current systems using UV or electro-chlorination.
In the oil and gas industry, water transportation and trucking costs amount to $1.5 million per well, which represents nearly a quarter of the overall cost. Falling oil prices have put pressure on margins and made water management an area of focus. BioLargo’s AOS Filter could create the ability to recycle produced water on-site and significantly reduce transportation costs, source water costs, and disposal costs for oil and gas producers. The impact of lowering the cost of fracking and of cleaning up the objectionable toxic water produced by fracking could have an enormous positive impact on the oil and gas industry.
And in the municipal water industry, it’s no secret that the quality of drinking water could use vast improvement with a large number of violations of the Safe Drinking Water Act. The problem is that 3,143 counties in the U.S. have scaled back or deferred spending to meet these requirements due to budgetary concerns. BioLargo’s AOS Filter could be a much more cost-effective measure to address these concerns and improve the nation’s water supply.
BioLargo Inc. stands at a significant tipping point in its corporate history. After spending the last several years in development mode, the company is already beginning commercialization of its CupriDyne odor control that is enjoying a very strong entry into the marketplace and its iSan system that was recently approved by the FDA for use in treating drinking water for poultry. BioLargo is also approaching commercialization of a highly disruptive water treatment system that will be showcased at the University of Alberta on August 15 when it will hold its symposium, and expects to launch its novel wound care products in H2 2017. Investors interested in the clean water space may want to check out the company – especially with the stock trading at a modest $48.7 million market capitalization.
For more information, visit the company’s website at www.biolargo.com.