In early 2015, Dennis Calvert, the CEO of BioLargo, Inc., (BLGO) was asked to serve on the board of directors of CleantechOC, the leading trade association in Southern California serving the clean technology industry. Learning about BioLargo’s award-winning odor control products, an association member involved in the waste handling industry explained their need for industrial odor control products that work and how the current products offered in their industry fall short of the mark. They asked if BioLargo could create a better solution.
With technical proof of claims in hand, a few key customer accounts like the US Government, industry awards like Best of Show Superzoo award, the Horse Journal Product of the Year, Cat Fancy Product of the Year, and an exclusive supply agreement with the US Military, the company confidently accepted the challenge. BioLargo’s experts went to work refining the product and its various delivery systems and CupriDyne Clean trials with well-known waste management companies and municipalities were set in motion.
The conclusion of successful customer trials were recently announced. Calvert stated, “We are highly encouraged by the positive response from customers, and the welcome invitation for trials from new industry prospects. In May 2016, we secured our first orders for CupriDyne Clean with industry leaders.”
Joseph Provenzano, President of BioLargo’s subsidiary Odor-No-More stated, “We are so confident that our CupriDyne Clean will outperform anything in the market that we are offering a free no-risk trial program to introduce our breakthrough product to industry. CupriDyne Clean breaks down H2S and other noxious odors eliminating them on contact. Industry is very interested and trials are being set up as fast as we can serve them.”
Odor control is a high priority in many industrial operations, such as waste handling facilities (land fills, transfer stations, wastewater treatment plants and lift stations), meat processing plants, renderings plants, sugar refining plants, potato processing plants, paper mills, asphalt plants, cheese production, food processing, livestock operations, coal plants, coke ovens, tanneries, geothermal plants and more.
One of the most common problem odors in these industries is hydrogen sulfide, (H2S), a colorless, flammable, and extremely hazardous gas with a rotten egg smell. OSHA sets an exposure limit to H2Sof no more than 20 parts per million and at even lower levels for prolonged periods.
The most commonly used products in industrial operations for odor control are heavy fragrances, enzymes, and chlorine-based compounds. However, these current product offerings fall far short of the mark and often fail to solve the problem. Enzymes do not eliminate the noxious gases and are slow acting, while Chlorine is highly pH sensitive and only partially effective. Also, chlorine use is limited because high levels can produce unsafe toxicity levels and handling chlorine dioxide can create risk to employees and neighbors.
Rather than masking the problem, Cupridyne Clean breaks down odorous compounds such as hydrogen sulfide, ammonia, amines, mercaptans and sulfur dioxide, instantly rendering them odorless, harmless and non-volatile. Industry trials are proving it outperforms competing products, and the company is set on a course to make Cupridyne Clean an industry standard.
A 2016 study by First Research reported that the US waste handling industry is greater than $89 Billiona year. When analyzing the size and number of operators involved, the company estimates that the opportunity for CupriDyne Clean could easily exceed 50,000 US locations. When the additional industries of livestock operations, food-processing plants, waste to energy conversion plants and waste water treatment facilities are weighed in, the estimates of market size for a truly effective odor control product can be staggering. Of course, many of these industries are not actively managing their industrial odors, so the actual number of prospects is calculated at less than 5% of the total market.
Waste Management (WM), is the leading provider of comprehensive waste management services in North America. Through its subsidiaries, the company provides collection, transfer, recycling and resource recovery, and disposal services. It is also a leading developer, operator and owner of landfill gas-to-energy facilities in the United States. The company’s customers include residential, commercial, industrial, and municipal customers throughout North America.
Republic Services, Inc., (RSG) Republic Services, Inc. (RSG) is an industry leader in U.S. recycling and non-hazardous solid waste. Through its subsidiaries, Republic’s collection companies, recycling centers, transfer stations and landfills focus on providing effective solutions to make proper waste disposal effortless for their commercial, industrial, municipal, residential and oilfield customers. We’ll handle it from here, the brand’s tagline, lets customers know they can count on Republic to provide a superior experience while fostering a sustainable Blue Planet for future generations to enjoy a cleaner, safer and healthier world. It operates in three segments: East, Central, and West. As of December 31, 2015, the company operated through 340 collection operations, 201 transfer stations, 193 active landfills, 67 recycling centers, and 12 saltwater disposal wells, as well as 8 treatment, recovery, and disposal facilities in 41 states and Puerto Rico. It also operates 69 landfill gas and renewable energy projects.
American Water Works Company, Inc., (AWK) is the largest publicly traded U.S. water and wastewater utility company. Marking its 130th anniversary this year, the company employs more than 6,700 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 47 states and Ontario, Canada.
Covanta Holding Corporation, (CVA), a leader in providing sustainable waste and energy solutions and operates 45 energy-from-waste facilities, 11 energy generation facilities, 18 transfer stations, 12 environmental services facilities, 1 regional metals recycling facility, and 4 landfills.
Tyson Foods, Inc., (TSN) provides over $40 Billion in chicken, beef, pork and prepared foods. It is one of the world’s largest food companies with leading brands such as Tyson®, Jimmy Dean®, Hillshire Farm®, Sara Lee®, Ball Park®, Wright®, Aidells® and State Fair®. It’s a recognized market leader in chicken, beef and pork as well as prepared foods, including bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, tortillas and desserts. The company supplies retail and foodservice customers throughout the United States and approximately 130 countries. The company currently has approximately 113,000 employees at more than 400 facilities and offices in the United States and around the world.
Darling Ingredients Inc. (DAR) is the world’s largest publicly-traded developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, technical, fuel, bioenergy and fertilizer industries. With operations on five continents, the company collects and transforms all aspects of animal by-product streams into useable and specialty ingredients, such as gelatin, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings and hides. The company also recovers and converts used cooking oil and commercial bakery residuals into valuable feed and fuel ingredients. In addition, the company provides grease trap services to food service establishments, environmental services to food processors and sells restaurant cooking oil delivery and collection equipment. It operates in more than 250 locations.
Stericycle, Inc., (SRCL), a U.S.-based business-to-business services company operating in 22 countries, is focused on solutions that protect people and brands, promote health and safeguard the environment. It is the leading medical waste management company in the world and collects and processes regulated and specialized medical waste for disposal services. It reports over 550 locations and growing.
Industrial trials of CupriDyne Clean are generating customers. With demand from so many large industries still looking for an odor control solution that really works, and with CupriDyne Clean’s free trial program, unrivaled performance, competitive pricing, and immediate availability, BioLargo appears well positioned for strong revenue growth as these products find their way to market.
BioLargo is a science and technology company that has developed a portfolio of disruptive technologies to help keep people, animals, and our planet clean, safe, and healthy. The company is preparing to launch its prototype of the breakthrough “high impact low cost” AOS Filter for water treatment for a showcase at the University of Alberta currently scheduled for this summer. Additionally, the company is preparing to file its 510k FDA application for its novel wound care products in Q1 2017. BioLargo’s Isan System, licensed to Clarion Water is now preparing for regulatory approvals and a commercial ramp up with first licensing fee due this summer.
After almost a decade of R&D and high investor expectations, BioLargo appears to be well positioned to experience meaningful sales growth beginning in late 2016 and early 2017.