Algae to Oil Technology Opens Several Multi-Billion Dollar Markets
OriginOil (OOIL)a leading innovator in the biofuel market,has developed a revolutionary technology, converting algaeinto renewable crude oil envisaged as a potentially direct replacement for petroleum. But the company believes that its technology, which extracts solids from liquidswill enable it to enter other big markets as well such as the produced water market and the industrial wastewater market. These markets present huge opportunities for the company, with each having a potential value in excess of $100 billion.
The company’s core focuswill remain the algae-produced biofuel market in which the company has already forged a place as a leader. And the market is only starting to grow. According to some projections, the market’s value will reach $1.6 billion by 2015 with the total biofuels market is estimated to grow to around $106 billion.
The company’s groundbreaking SOS technology, which separates solids from liquids in a single process, without the use of chemicals is considered to be a major technology breakthrough with numerous applications .“Solids out of Solution” was originally developed to extract algae from the large amount of water in which it grows.However it could also be applied in any industry that requires separating solid deposits from liquid, opening new horizons to OriginOil. The company’s executives are excited about the possibility of expanding the use of their technology into other markets.
!m(/uploads/story/94/thumbs/pic1_inline.png)“We are seeing additional revenue and growth opportunities where our technology has the potential to become a cost-effective strategy in multiple vertical industries,” said Chief Executive Officer of the company Riggs Eckelberry.
One of the opportunities that Eckelberry spoke of is the handling and treatment of produced water. According to Global Water Intelligence, “The oil industry produces around 2.5 times more water than oil.” By 2025 that number will increase to 5 times more water produced than oil. All that (polluted) water presents serious environmental problems, causing pollution of existing bodies of water or forming new ones. Handling and treating the produced water is a huge market, full of opportunities. Based on the daily production of crude oil (around 70 billion barrels)and considering that energy companies pay between $3 and $12 per barrel of water produced for disposal, estimations show that there is a market potential of at least $400 billion.
Another area worth exploring is the Industrial wastewater treatment market worth $183 billion (forecasts made by McIlvaine in its report “Water, Wastewater, and Filtration: World Markets”). The scale of the market is hardly surprising, considering the growing demand for filtration services and products. Outsourcing is a common practice in that industry.
The technology OriginOil has developed provides a solid base for the company to become a heavy hitteron all of these markets and to access additional streams of revenue. Lab tests have already confirmed the effectiveness of the SOS system. And this combined with the fact that the process is chemical-free and uses very little energy will make the system a popular solution for large industrial operations.
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