Friday, 30 October 2015

BioLargo (BLGO) Solving Global Issues with Iodine- article by Steve Kanaval

By  +FollowOctober 30, 2015 11:04AM
Tickers Mentioned:
BioLargo stock, BLGO, water purification, water technology stocks, iodine
I meet 50 companies per year and have been interviewing hundreds of CEO’s for more than a decade. Their interests vary from vineyards to finance to technology and almost anything you can name, but the one thing they all have in common is that they articulate their company’s story better than anyone else.
I distinctly remember meeting Dennis Calvert, the CEO of BioLargo, Inc. (BLGOmore than a decade ago when I was running a TV station in Dallas and in charge of the content and production. When Dennis walked into my office I looked up and saw this imposing guy, about 6 feet 6 in height. In one hand he held a plastic container and piece of cheesecloth, in the other a tiny iodine pill. Dennis explained that in his hands he held a simple solution to some really big problems like disinfection and water treatment that makes clean water abundant and affordable. He also came armed with patents, great potential partners, and a plan to license his proprietary idea to companies large and small. That was 2006.
It’s 2015 now and I was pleasantly surprised to hear about the progress he has made. BioLargo is heating up with shares up +113% YTD as I write on increased trading volume. After almost 10 years, I learned that Dennis and his science guy, Ken Code, have developed their technology to a point where it is now ready for commercialization. This is a great ongoing story for small business owners and is reflective of the road less traveled when a CEO has the stones to stick with his convictions.
I am happy to say that Dennis not only survived the equity meltdown of 2008 and the subsequent 2009 flushing of all stocks. Dennis is a convincing leader who is on a mission because he knows that Biolargo really can make life better for millions of people.
BioLargo designs and delivers disinfectant iodine in a number of applications, including the AOS Filter, CupriDyne, and the Isan system as a solution to disinfection with unsurpassed odor and moisture control and wound healing.
BioLargo markets its products under the Odor-No-More, Natures Best Solution, Deodorall, and NBS brand names primarily through retail stores. The company serves food processing, agriculture, oil and gas, mining, and maritime industries. BioLargo, was founded in 1989 and is based in Santa Ana, California.
I have been following BioLargo for many years and watched shares go up and down like all stocks do, but I do not think in the time I've been looking at them that they have ever been in a more opportune position than they are now for shareholders new and old.
DISCLOSUREThe views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:
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BioLargo Readies Its Disruptive Water Treatment Technology For 2016 Commercialization

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 (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."
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. (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. (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 (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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Tuesday, 6 October 2015

BioLargo gains momentum with capital infusion and expanding grants, adding new talent- Letter to Shareholders

Dear Shareholder,

It is with great pleasure I write to share a few highlights of our recent advancements and the upcoming opportunities for BioLargo.  The future for BioLargo is very bright and we find ourselves navigating inside what could be called a perfect storm for BioLargo!

The world knows that everyone must change the way we manage water.  Extreme challenges such as widespread global pollution, prolonged drought, ever tightening regulatory pressures, continued industrial expansion, outcries for increased food safety and global population growth, all point to the urgent need for clean affordable water with sustainable technology solutions.

Our patent protected BioLargo AOS Filter is the lowest cost, highest impact, sustainable clean water technology known. It is capturing the attention of leaders in academia, governments, industry and investors.  Our AOS Filter exemplifies a technical break-through in the way water can be cleaned and managed. We know it is only a matter of time for BioLargo to find its way to commercial success.  How close are we?

Perhaps the best way to help answer that burning question is to highlight a few of our recent milestones.  
  • Grants and financial awards to advance our AOS filter to commercialization to exceed $1,000,000 and counting.  This financial support comes at a critical time as we continue building our science team at Agri-Food Discovery Place on campus at the University of Alberta.
  • Our science team is gaining peer acceptance as evidenced by their recent attendance at the EUREKA ACQUEAU Conference in Paris France.  EUREKA is a publicly funded, intergovernmental network of companies and funding agencies from over 40 countries across Europe and beyond. As a leading international water cluster, EUREKA’s goal is to promote transnational collaboration for developing innovative projects in water technologies.
  • We are organizing our first pilot in the poultry processing industry, working with a major poultry producer in Canada, and have been invited to apply for an industrial partnership grant to finance the pilot. We are developing a new design for the AOS with sufficient scale to tackle this challenge.
  • 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. (Link to Form 8-K) These advancements continue to strengthen our balance sheet.
  • We continue to expand our professional staff, including the recent addition of Dr. Parastoo Pourrezaei, E.I.T., a professional researcher and engineer with substantial experience in the oil sands industry. Our CFO, Charles Dargan, has again agreed to extend his tenure with us, accepting no cash, only stock options, as compensation.
  • As a result of our technical symposium a month ago, we are engaged in discussions with a number of potential strategic partners for possible licenses and joint ventures.
  • We have developed three distinct iodine based platform technologies.  Our award-winning Cupridyne based products continue to find their way to market through a series of organic growth initiatives.  Our license of the Isan System to Clarion Water is progressing and we remain confident in its continued growth and financial contribution.
  • Invention continues at BioLargo.  With the addition of such acclaimed technical staff, and ever-expanding technical resources, we are continuing to find new discoveries that add to our intellectual property estate and will create shareholder value well into the future.

We are building an exceptional company.  We have successfully developed three high impact technologies that will make the world a better place to live.  We continue to add top talent to an already extraordinary team. We have avoided catastrophic high risk financing structures so common for early stage companies like ours, and we have attracted a broad base of long-term loyal investors to continue advancing our technology and commercial future. We have consistently maintained a high mark for integrity in both science and business.

We believe that BioLargo, as a science company, is best compared to other biotech companies: we will achieve greatness as we accumulate critical mass to break through to commercial success. Given its proven technical claims, BioLargo is arguably ‘one to hold forever’.  And, we certainly love what we do. Making clean water affordable for the world is worthy of our steadfast dedication. The opportunity to make a positive impact in our world and to prosper is a powerful combination, and our team has dedicated itself to the mission.

Life is not without risk, and I encourage all of you to read our SEC filings carefully, and the risk factors contained in our Annual Report (Form 10-K). Investors should note that one of the risks we face is the need to obtain even greater capital in order to finance the drive into commercialization.

Stay tuned to learn more about our advancements. We encourage you to reach out to us by email or phone if we can be of any assistance to you in any way.

Thank you for your support and, as always, Go BioLargo!

Dennis P. Calvert
President & CEO
BioLargo, Inc.

Safe Harbor Statement
The statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, the risks and uncertainties included in BioLargo's current and future filings with the Securities and Exchange Commission, including those set forth in BioLargo’s Annual Report on Form 10-K for the year ended December 31, 2014.

Company contact: 
Dennis Calvert 
BioLargo, Inc. 
949-643-9540 x1

Thursday, 1 October 2015

International Maritime Organization Mandate Spawns $50B Dollar Clean Water Tech Opportunity

Author: Dennis P. Calvert, President and CEO of BioLargo, Inc.
Increasing concerns over the detrimental transfer of invasive marine species across the world’s oceans through the transport and disposal of ballast water by large vessels have prompted the International Maritime Organization and the United States Coast Guard to impose regulations for the treatment and discharge of ballast water.  Already in force in U.S. waters as of January 1, 2015, universal ratification is expected by early 2016.
An estimated 65,000 ships over 400 gross tons must be fitted with approved Ballast Water Treatment Systems, “BWTS”, within the next 5 years.  The approved systems must disinfect the seawater without adding any toxic elements to the discharged water.  Global Water Intelligence estimates that the average cost for each system is more than $750,000 and the total cost to outfit every vessel will be about $50 billion.
Thousands of organisms carried in ballast water can cause severe ecological damage resulting in large economic burdens and even human health risks. Two examples of harmful consequences are:
Mnemiopsis leidyi, a comb jelly (similar to a jellyfish) feeds on anything smaller than itself that gets stuck to the sticky lobes near its mouth, especially zooplankton. It was probably introduced via ballast water from New England (USA) into the Black Sea. In its new environment, Mnemiopsis has no natural predators and has outcompeted native species for food. As a consequence, the once profitable anchovy fisheries in Russia and Turkey have almost disappeared.

One of the most widely known invasions in the United States is that of zebra mussels into the Great Lakes. These organisms grow on almost any structure, forming large clumps of mussels that can clog water intake pipes and damage or impair other structures. Periodically these organisms need to be removed from pipes and other structures, and that requires time, money, and sometimes-specialized equipment.
The U.S. Coast Guard and the IMO have not yet approved any permanent Ballast Water Treatment Systems but are expected to begin approvals by the end of 2015 and have already approved 9 systems for temporary use as of April 2013.  As expected with a $50 billion windfall opportunity, the competition is stiff with over 55 different systems currently offered and awaiting permanent approval.  Ultraviolet (UV) disinfection in combination with filtration is the most commonly used technology, followed in second place by electro chlorination.  Electro-chlorination has historically been the preferred choice for use in larger vessels because it is believed by some to be more effective with larger flows compared to UV.
Current systems offered are large, complex and expensive.  As an example see this image of a BWTS by Cathelco.

There are many examples of water treatment technologies that work well.  However, the cost (both Op-X and Cap-X) is most often so high that industry is slow to adopt, or even worse, they simply refuse to make changes until regulations mandate change.  Simple economic drivers steer decision makers to the lowest-cost solutions to problems that are often designed to achieve minimum regulatory compliance.   Sometimes it is hard to see the future, much less invest precious capital way ahead of the curve.  The shipping industry is no different from any other industry in this way.  We see the phenomenon playing out in the oil and gas industry as they wrestle with tailings ponds to treat or not to treat, whether to treat or dispose of fracking related flow-back water in disposal wells or recycle it for another use. Similar scenarios are playing out in agriculture, mining and food production and many more water industry segments.   They all must have clean water to use in their processes, and yet they produce massive volumes of contaminated water. The solution is to cleanse wastewater for re-use with the lowest cost at highest impact.
Breakthrough Lowest Cost, Highest Impact Clean Water Technology Unveiled at University of Alberta 
This massive business opportunity in the maritime industry comes at a time when water scarcity, as well as the global push to manage contaminated water, is at an all time high.  At BioLargo we recognized quite some time ago that the key to solving the world’s water problems, including the maritime example, would require a new way of thinking about how to treat water, and that any viable solution had to be significantly less expensive than what historically was available.
Nature Shows the Way
Our company Founder and Chief Science Officer, Kenneth Reay Code, was certainly ahead of the curve when he set out to prove the theory that he could engineer a sustainable technical solution to create the lowest cost and highest impact sustainable clean water technology known.  Having invested an entire career studying the natural Iodine cycle, his vision for the solution was clear and the mechanics of the natural iodine cycle could be his guide.  The Iodine Cycle is simply an elegant cleansing system for our earth, and it is a critical cycle to maintain microbial balance in nature while, at the same time, iodine supports life as an essential nutrient and catalyst to oxygen Iodine is part of the circle of life, stored in the ocean, processed by phytoplankton and algae, evaporated into the clouds, activated by UV light,  falls down onto the earth with the rain, as it is taken up by plants and animals on earth, and eventually finds its way back to the ocean. Our AOS Filter replicates and accelerates the mechanics of this natural cycle and enables us to generate extremely efficient cleansing and safely release the AOS treated water back into the ocean.
Just a few weeks ago University of Alberta researchers unveiled the tested results of the BioLargo AOS Filter and explained the findings of 100 studies that demonstrate its potential to save the maritime industry billions of dollars per year as well its potential to impact just about every segment of the $350 billion water industry.
The AOS Filter combines iodine, water filter materials and electrolysis within a flow-through water filter device, generating extremely high oxidation potential that easily eliminates soluble organic contaminants and efficiently delivers extremely high rates of disinfection. The science behind the AOS Filter represents an astonishing discovery that will fundamentally change the way water is treated.
Remarkably, the BioLargo AOS Filter uses commonly understood materials and operates at ultra-low power levels. Its configuration essentially converts what would ordinarily be considered a typical filter into a safe and highly effective electrochemical reactor that generates extremely high levels of oxidation potential across the surfaces within the device.  As a result, it can do the job at a fraction of the time and cost of any other known technology.  Of course the bottom line is that it works, and it works so well that researchers call the results “unprecedented”.
BioLargo AOS Filter
Unprecedented advanced oxidation:
Disinfects at less than 1/20th the energy cost of the nearest technical competitor, greater than 100 times the efficacy, and more than 10 times faster.
It is especially effective removing soluble organics like napthenic acids, 1,4 dioxane, benzene, and aeromatics.  It also achieves extremely high rates of disinfection to eliminate bacteria, fungi and spores.
AOS Filter Capital Cost Savings
Our team at BioLargo has already assembled hundreds of AOS Filters from readily available parts as the company prepares for its first customer led commercial pilots.  The cost to build one complete AOS Filter system is a fraction of today’s competing systems, and we expect our pricing model to be well received by industry.  With an average cost of competing systems for use in the maritime market estimated at $750,000, we expect a substantial cost savings (both Cap-X and Op-X). BioLargo’s AOS Filter could save the maritime industry billions of dollars.
AOS Filter Operating Cost Comparison
In her thesis at Tallinn University, Advanced Oxidation Processes for Water Purification and Soil”,  Anna Goi calculated the energy costs to operate UV and ozone technologies at varying pH levels to promote advanced oxidation and found that they can run in a wide range of anywhere from $100 per acre foot to as high as several thousand dollars per acre/foot.  Energy cost for the AOS Filter in a high saline environment is less than 1/20th the energy cost of the nearest competing technology.
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 before discharging back into the ocean.  At the most conservative cost of $100 per acre/foot for energy costs alone, 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 75 acre/feet at less than 1/20th would be in the $375 range or less, per voyage, versus $7,500 for the cheapest system.  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.  The value propositions offered by the AOS Filter will enhance the payback even more quickly, but we prefer to keep those as a trade secret for today.
The AOS Filter can consistently generate complete disinfection/sterilization, and it is well suited to operate in high saline environments like seawater and other oil and gas industry related waters.
The AOS Filter Is Ready For Commercialization
With proven technology that is far advanced over all others, combined with low energy costs and competitive pricing, our AOS Filter is now ready for commercialization.  BioLargo is positioned to be able to help maritime operators meet the stringent new requirements and at the same time save them billions of dollars.  Discussions are underway with potential strategic alliance partners and customers.  The next step is to engineer the unit to fit the customers’ needs.
Data from researchers conducting over 100 university studies show that the AOS Filter is the leading solution for the maritime industry as it offers superior efficacy and substantial savings.  The AOS Filter has been shown to be so high impact and so low cost that it is expected to soon be pulled into almost every segment of the $350 billion dollar water treatment industry.  We are pursuing a licensing and joint venture strategy to prepare for near-term commercialization.
Contamination of the oceans combined with troublesome worldwide pollution and global drought are all pointing to big global demand and a very bright future for BioLargo’s breakthrough technology.  Our company is ready, willing, and able to bring high value to the maritime industry as well as many other industries and to become a remarkable commercial success in the short, medium and long term.
This article was brought to you by BioLargo.  BioLargo, Inc. designs and delivers nature’s disinfectant iodine. Its technologies include AOS Filter, CupriDyne, and Isan system.