EWS:AOx as Next Generation Water Treatment Solution for Oil & Gas Markets

Transcription

1 EWS:AOx as Next Generation Water Treatment Solution for Oil & Gas Markets Produced Water Middle East Conference November 2017

2 Safe Harbor Statement To the extent any statements made in this presentation deal with information that is not historical, these are forwardlooking statements under the Private Securities Litigation Reform Act of Such statements include, but are not limited to, statements about OriginClear s plans, objectives, expectations and intentions with respect to future operations and products and other statements identified by words such as will, potential, could, can, believe, intends, continue, plans, expects, estimates or comparable terminology. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Uncertainties and risks may cause OriginClear s actual results to be materially different than those expressed in or implied by OriginClear s forward-looking statements. For OriginClear, particular uncertainties and risks include, among others, risks associated with the failure to realize the anticipated benefits from its operational plan thereof; operating costs and business disruption following the general business and economic conditions; OriginClear s need for and ability to obtain additional financing, the challenge of developing and successfully licensing new technology, and achieving market efficiency; the operational success of OriginClear s acquisition business; and the success of effective operations. More detailed information on these and additional factors that could affect OriginClear s actual results are described in OriginClear s annual and quarterly reports that have been issued and filed with the Securities and Exchange Commission. All forward-looking statements in this presentation speak only as of the date of this presentation. OriginClear undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 2

3 Who We Are A technology company in water. Founded ten years ago. Publicly trading on US OTC as OCLN. Our technology has wide application range, so business model is licensing and joint ventures. Focusing on early adopters, to shorten the adoption process. Electro Water Separation : an award-winning, patented system, developed entirely in-house. 3

4 Electro Water Separation EWS is a two-stage process. Uses electrochemistry in real time (continuous, no chemicals). Effectively clears up very dirty, very oily water. Thoroughly proven in the field field test on East Bakersfield Produced water 4

5 EWS Architecture First Stage: Single Step Extraction (SSE) Direct contact key to real-time operation Proprietary design of anode nested inside cathode. Choice of donating or non-donating modes. First Stage: contaminated water travels through a series of electrically-charged tubes. 5

6 EWS Architecture Second Stage: Concentrated material is drawn into flotation tank. Hydrolysis causes microbubble cloud. Material pushed to surface for removal. The entire process is continuous and scalable. Second Stage: Floated sludge recovery at tank surface. 6

7 2017: Where We Stand Now entering commercial scale around the world with licensees and joint venture partners. Wholly owned subsidiary in Texas, complementary membrane solutions available. In 2016, developed a next-gen Advanced Oxidation Process, AOx. Now rolling out AOx in combination with EWS. 7

8 What Can AOx Do? Degrade (oxidize) all organic compounds, including the recalcitrant ones (e.g. drugs, pesticides, endocrine disruptors etc.), VOCs, all the way to mineralization. Successfully deactivate bacteria, viruses etc. Oxidize heavy metals. Source: SSWM: Advanced Oxidation Processes 8

9 OriginClear s Next-Gen AOP Patent filed March 2016 for Advanced Oxidation. Additional patents & trade secrets in development. No reagent injection AOx is a strictly electro-catalytic process for broad range oxidation: indirect and direct oxidation. AOx is the low-maintenance, energy-efficient, real-time way to address the wide array of contaminants in various wastewater streams, including produced or frack flowback water. 9

10 EWS is unique too Unique electrodes configuration Choice of electrode materials. Donating and non-donating anode High mass transfer & pressurized reactor to keep gas in solution Pressure released in flotation chamber for immediate dispersion of gas Possible retrofit on existing infrastructure 10

11 Best Value-Added Process 11

12 Field Case Studies EWS PRIME used for all three trials: EWS for 90% removal of all non-soluble contaminants & bacteria Ultra-Filtration polishing to achieve non-detectable levels Three Unique Produced & Flowback Water Trials Gas wells from western slope of Colorado Niobrara West Texas Intermediate oil wells Permian Heavy oil CSG wells of Bakersfield Monterey basin System throughput: 1000 barrels per day 12

13 Niobrara Performance Better than 99% removal of Turbidity, TSS and Oil observed Turbidity / TSS / Oil in Water (NTU, mg/l, mg/l) Feed EWS EWS Prime Turbidity (NTU) TSS (mg/l) Oil (mg/l) Feed water for testing: Produced & frac flowback from Colorado Western Slope disposal well facility 13

14 Permian Adaptability Wide variations in feed from many different truckloads and tank mixing over two weeks of operation in the Permian 1600 Extended EWS Prime Performance Parsley Energy Raw SWD EWS Prime Effluent EWS Turbidity (FNU) Recovered Oil 0 9/27 9/29 9/29 9/29 10/6 10/6 10/7 10/7 10/9 Operation Date 10/9 10/9 10/9 10/10 Water Samples 14

15 Monterey Quality Field operations to treat CSS produced water to steam boiler make-up and irrigation quality Beneficial Re-Use Vaquero FWKO Feed Turbidity 1200 EWS Prime Effluent Turbidity 1000 Turbidity (NTU) Run Time (Hours) Water Samples 15

16 System synergy No observable membrane fouling even at high production capacity due to complete produced water pre-treatment UF System Flux UF Specific Flux Module Flux (gfd) Run Time (Hours) Specific Flux (gfd/psi) Vaquero Site in Monterey Formation 16

17 Independent Lab Data Parameter (ppm) Feed EWS PRIME Effluent EWS Custom Effluent BOD COD TSS Below Detection Limit TRPH (HEM)* Below Detection Limit Diesel Range Organics Gasoline Range Organics Motor Oil Range Organics * TRPH: Total Recoverable Petroleum Hydrocarbons HEM: Hexane Extractable Material All data generated by Zalco Laboratories Sampled 18 Feb 2015 at Hershey Tank Battery, Vaquero Energy (Bakersfield CA) 17

18 Cost / Performance EWS PRIME Specific Energy Consumption (SEC) 0.28 kwh per barrel or 1.76 kwh/m 3 - including EWS & UF US$0.042 per barrel at US$0.15 per kwh EWS PRIME Operating Expense w/o Labor US$0.042 per barrel energy cost US$0.047 per barrel typical process equipment maintenance Total Operating Expense US$0.089/bbl 18

19 Bottom Line Performance EWS PRIME performed in wide range of environments Gas wells to WTI to Heavy Oil Truck load to truck load (black to yellow) Salinities from 900 to 160,000 ppm Contaminants removed by EWS PRIME TPH is below detection limits of 5 ppm TSS to below detection limits of 3 ppm Gasoline, Diesel, Motor Oil Range to less than 1 ppm Bacteria removal expected to be higher than 99.5% Effective desalination requires total removal of oil and TSS. EWS PRIME is the most cost effective solution. Eliminates plugging and fouling of downstream desalination 19

20 Our Management Team Riggs Eckelberry Jean-Louis Kindler Bill Charneski Marc Stevens Founding Chairman and CEO President, OriginClear Technologies President, OriginClear Group President, Progressive Water Treatment Multiple dotcom exits including Yellowpages.com in Prepped CyberDefender for NASDAQ IPO mid 2000s. Co-founder of OC joint venture Ennesys. CEO MHS Equipment (42 M, 360 employees in 2008) 15 years Dow Chemical in management, sales; acquisition and innovation track record. Over 15 years, built PWT into solid water player with outstanding reputation. 20

21 Thank You! 21