By Ian Gilson, PhD, CFA
OriginOil (OTC:OOIL) has announced that it, in conjunction with Clean Water Technology doing the construction and Pace providing the engineering, will lead in the formation of a series of joint ventures that will provide clean-up services for a pay by the gallon fee.
These JVs will use third party financing to purchase commercial scale equipment from Clean Water Technology and operate them at a customer's site. This will make the use of the equipment available to small and medium sized companies that may not want to purchase it. Companies will still have the option of buying the equipment and paying a royalty to OriginOil.
OriginOil will not be financing the JVs, but will receive payment for the use of the equipment. The buyer of the service gets the technical expertise required to clean the water and keeps the water for reuse.
OriginOil has announced that Garden State bioEnterprises (GS bioE) has adopted the Algae Appliance and OriginOil's harvesting technology as a key component of its proprietary production system for Astaxanthin.
Astaxanthin is a dietary antioxidant, first produced from algae by Cyanotech and marketed as BioAstin. This was approved by the FDA as GRAS in 1999 to be sold as a dietary supplement. Astaxanthin is priced at about $115 an ounce. It was used to impart the pink color to farmed salmon but was supplanted by synthetic Astaxanthin. Meanwhile, natural Astaxanthin has become an important nutraceutical product. OriginOil reported that the research firm, Oilgae, forecasts a $2 billion market for natural Astaxanthin in 2020.
More From Zacks.com