Sunday, 25 July 2010

BioLargo Opportunities in the Petroleum Industry- Sets Stage for Major Advancement - Contaminated Water Soutions

BioLargo Opportunities in the Petroleum Industry- Sets Stage for Major Advancement

Message from
Dennis P. Calvert - President & CEO - BioLargo, Inc.

We have been working for some time now in the equine & livestock industries featuring our ( products and working with BioLargo technology in stalls, barns, feed lots, chicken coups and, yes, even treating pig manure. We deliver unmatched, superior performance and customer value in odor and moisture control, improved animal health, cost effectiveness in both the care and maintenance of the animal's living environment and also in waste management. We are currently working with industry leaders developing commercial products for the industrial farming areas. We also have our sights set on partnership opportunities with leading pet industry companies. Stay tuned.

What does this have to do with the petroleum industry? If you can manage the technical challenges of liquid pig manure, (like we do) then contaminated water from other industries like the petroleum industry is the obvious.... 'well-to-tap'. (pun intended)

"BioLargo's technical advances are opening up business opportunities for our BioLargo technology in any industry that has to contend with contaminated water. "

The petroleum industry spends an average of $3 to $12 per barrel to dispose of produced water and the Department of Energy also informs us that globally the industry creates more than 50 billion barrels of produced water, creating an narrowly defined industry opportunity in excess of $4.3 billion and growing.

As you know, we added former CTO & Sr. VP of Halliburton and Executive Director of the Research Triangle Energy Consortium (RTEC), Vik Rao, PhD to the BioLargo team to help us bridge the gap between technology and business to prepare us to deliver powerful and valuable solutions to industry.

This is a very exciting time at BioLargo!

** Be sure and read the summary below-

Best Regards,


BioLargo Opportunities in the Petroleum Industry

The petroleum industry has multiple settings in which water treatment is either essential, could get legislated, or simply is good business. Detailed below is a sampling of these and the BioLargo approaches to addressing them.

Fracturing Operations: A majority of gas wells in the US utilize hydraulic

fracturing to stimulate the production. A number of these are in drought areas and so access to fresh water is an issue and alternative sources must be found. Shale gas prospects, due to their location, generally do not have this issue. But they have issues with disposal of flow back water and produced water. In both cases the principal hurdles to re-use in fracturing operations are dissolved solids, bacteria and in some cases, radioactive elements. The bacteria in particular are pernicious. If returned to the reservoir, they are prone to multiply and produce H2S and other harmful species. The BioLargo platform technology CupriDyne(TM)-SAP is uniquely suited. It will eradicate bacteria and sop up heavy metals and radioactive elements. It does so by the controlled release of the powerful oxidant Iodine in stable molecular form. This environmentally friendly element does the job at small doses. The reaction products can easily be harvested. Another feature of the technology is that it simply combines with other needed water treatment steps such as filtration and desalination.

The Saline Aquifer Opportunity: In some areas water wells are being drilled to supply the fracturing operation. In a nod to the environmental issues service companies are making fracturing fluids increasingly tolerant of chlorides. They are already at 40,000 ppm and one can expect that shortly to extend to 80,000 ppm. This means that certain saline aquifers become fair game for becoming the water of opportunity. However, they could well have contaminants such as bacteria and metals that would need to be removed. In these cases the BioLargo solutions may well be all that are needed. In some cases competition for water withdrawals could completely go away, with far reaching consequences to community acceptance of gas production as a neighbor.

Heavy Oil Operations and Associated Refining: Heavy oil operations, both mining and SAGD, use vast quantities of water. In the latter case recycling is by and large practiced. In the former, the water waste is a major environmental issue. Both of these can be addressed with CupriDyne(TM)-SAP technology. Also, heavy oils often have a component of naphthenic acid. Refinery neutralization with KOH still yields a water waste with less than acceptable acid concentration. Naphthenic acid, as also all other carboxylic acids, are amenable to oxidation and removal with BioLargo technologies.

Produced Water: The world annually produces about 4 trillion gallons of water associated with petroleum production. When possible it is reinjected at a cost. Sometimes it is used for water floods, although bacterial action has been noted as reducing the efficacy. Clean up and use of this water represents an opportunity. Again, salinity is the principal hurdle. There could also be metals, some of them valuable if harvested. In a majority of instances one could expect bacteria removal to be important. This may especially be the case if the water is destined for non oilfield use. BioLargo technologies very effectively piggy back on desalination processes and would render the water free of bacteria and metals if any.

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