OriginClear Inc (OCLN)

[~MulaGreen~]

OCLN:The story behind...

https://thewaternetwork.com/article-FfV/in-conversation-with-riggs-eckelberry-ceo-of-originclear-nKLPG3Lqn3vZb6ojljmlww

In Conversation With: Riggs Eckelberry, CEO of OriginClear
The Water ?Network team ?had the ?pleasure to ?interview Riggs ?Eckelberry, CEO ?and president ?of the ?OriginClear ?company, a pure ?technology ?company. ?OriginOil has ?developed a ?unique ?technology for ?continuously ?removing ?organic ?contaminants ?from huge ?amounts of ?water, with ?minimal energy ?and no use of ?chemicals, ?thereby ?contributing to ?the goals of ?sustainability, ?energy ?efficiency and ?water ?conservation ?and preservation.? In 2015, ?Biofuels Digest ?ranked Riggs ?Eckelberry one ?of The Top 125 ?People in the ?Advanced ?Bioeconomy. ?This was the ?fifth year of ?this recognition.? The Los ?Angeles ?Business ?Journal has ?named him to ?the Who’s ?Who in Los ?Angeles ?Business for ?2016, while AI ?Magazine ?recently named ?Riggs CEO of ?the Year for ?Renewables and ?The Environment ?in California. ?

Q1: Thank you ?for taking the ?time to talk to ?us. We would ?love to know ?more about you ?as a person and ?your vision ?behind ?OriginClear. ?
I came out of ?high tech, ?which is all ?about ?disruptive ?technologies ?creating whole ?new markets. ?First, in the ?eighties, I was ?helping small ?businesses get ?off paper ?ledgers and ?onto small ?computers. ?
In the ?nineties, I ?experienced a ?similar ?technological ?revolution ?during the dot-?com boom. Today,? I see ?innovation and ?change coming ?to the water ?and wastewater ?industries. ?
Many companies ?are still using ?outdated water ?management ?practices ?– ?it’s time ?for them to ?embrace ?technology and ?improve ?efficiency. ?
Why is now the ?time for water ?innovation? ?Water is ?becoming ?increasingly ?more scarce. ?McKinsey’?s Transforming ?Water Economies ?forecasts that ?“without ?action, global ?water demand ?could outstrip ?supply by up to ?40 percent by ?2030.” ?Furthermore, ?existing water ?infrastructure ?in the United ?States is aging ?and water loss ?is increasing. ?
According to ?Lux Research, ?updating our ?national water ?infrastructure ?will require an ?investment of $?270 billion ?– money ?that will be ?hard to pull ?together for ?projects that ?could take ?decades to ?complete. ?Instead of ?rebuilding our ?current ?infrastructure, ?we can equip ?water users to ?treat their own ?water with ?small, modular ?water treatment ?systems that ?can be built ?and installed ?locally. ?
I’m ?fascinated by ?the disruptive ?potential of ?the water ?industry. We ?are actually ?acquiring ?companies to ?help industrial ?water users ?treat their ?water ?themselves, so ?they can reuse ?it. We believe ?those companies ?are going to ?grow tremendously ?because of this ?“local ?water” ?growth trend. ?
We have spent ?years ?developing a ?breakthrough ?technology of ?our own. It was ?designed ?originally to ?harvest algae ?from water. In ?2012, one of ?our brilliant ?people realized ?it was also a ?great way to ?make murky ?water clear! No ?chemicals, and ?the energy ?demand is next ?to nothing. ?
We have a ?pilot unit ?running on an ?oil field in ?California that ?treats 340 ?barrels of ?produced water ?per day – ?that’s 14,?000 gallons ?– for ?just $1.60 per ?hour in ?electricity, ?according to ?our partner ?working on that ?oil field. ?That’s ?about half the ?normal cost, ?and it gets ?better as you ?scale up. ?Literally, you ?can power our ?water process ?with solar ?panels. And ?because no ?chemicals are ?involved, ?operating labor ?is greatly ?reduced. ?
The world ?knows how to ?make clean ?water if it ?starts out ?clear. But if ?it’s full ?of debris and ?oil… not ?so easy. A new ?project in ?China to clean ?black water ?from landfills ?came to us ?because that ?water clogs ?every filter ?and membrane ?known to the ?industry. We ?are able to ?make water ?clear, and ?that’s ?huge. ?
So our vision ?is simple: to ?enable a new ?era of clean ?and socially ?responsible ?water treatment ?solutions. ?

Q2: ?OriginClear has ?developed and ?patented some ?revolutionary ?technologies ?like the recent ?announcement ?about a new ?breakthrough ?water cleanup ?system. Can you ?tell us more ?about the ?system and how ?it is better ?than the ?traditionally ?available ?technologies? ?  
We use ?electricity to ?coagulate and ?float suspended ?solids and oils ?out of the ?water. We call ?this Electro ?Water ?Separation™?.
In the final ?stage called ?Advanced ?Oxidation, we ?take advantage ?of the ?electrical ?fields already ?generated to ?remove many ?dissolved ?contaminants, ?such as ammonia,? toxic ?chemicals and ?the hydrogen ?sulfide – ?what gives oil ?refineries that ?rotten egg ?smell – ?to reduce the ?value of crude ?oil by 10%. ?
So the ?combined ?technology is ?called EWS:AOx. ?It is energy-?efficient, ?continuous and ?easy to manage. ?It fits right ?into any water ?treatment ?process and ?works ahead of ?the filters and ?membranes. ?Filter ?manufacturers ?love us because ?we make their ?filters last ?much longer. ?

Q3: You have ?OriginClear ?Technologies in ?addition to the ?OriginClear ?Group. Can you ?elaborate on ?the vision ?behind ?acquiring other ?companies? ?
For years we ?invested in our ?technology. ?That is the ?long game. We ?are now getting ?commercial ?traction and ?think we have a ?home run with ?the strategy of ?acquiring other ?companies. We ?are passionate ?about our ?technology and ?it’s ?making a huge ?difference ?where it is ?being put to ?work. ?
A year ago, we ?realized that ?our public ?company could ?also be a ?platform for ?aggregating ?private ?companies ?involved in ?water treatment.? Consequently, ?we formed the ?OriginClear ?Group™ by ?which we ?acquire ?companies with ?complementary ?services to ?offer a ?complete array ?of solutions ?through one ?provider to any ?customer ?anywhere. ?
In fact, our ?first acquired ?company – ?Dallas-based ?Progressive ?Water Treatment ?Inc . (PWT) –? just ?collaborated ?with us and the ?Omaha-based ?Consolidated ?Water Solutions ?to treat ?wastewater ?entering steam ?generators at ?Otter Tail Power 's Coyote ?Station in ?North Dakota. ?PWT's solution ?cuts operating ?costs at the ?facility, ?decreases the ?amount of ?sludge & ?wastewater ?produced and ?improves ?overall system ?performance. ?Consolidating ?companies like ?PWT will lead ?to enormous ?economies of ?scale through ?sharing of best ?practices, ?customers and ?technologies. ?
The idea is to ?capitalize on ?that big trend ?of water users ?starting to ?treat their own ?water. Whether ?you are ?manufacturing ?chemicals or ?spare parts or ?furniture, ?you’re ?making dirty ?water that the ?local ?municipality ?really ?doesn’t ?want. Plus, ?water isn’?t free – ?the ability to ?reuse water ?resources is a ?major benefit. ?Treating your ?own water is a ?fact of life ?these days, but ?many companies ?don’t ?have the ?expertise; ?it’s not ?their core ?competency. ?
So they’?re outsourcing ?to local small ?companies that ?can do the job ?– from ?designing to ?building to ?installing and ?even operating ?these water-?treatment-?systems-in-a-?box.
These small ?companies are ?starting to ?take off. We ?think a billion-?dollar company ?could be built ?by acquiring ?progressively ?larger ?companies that ?themselves grow ?very fast. ?
Water is home ?to big public ?companies that ?grew through ?acquisition: ?American Water Works (chart) ($13B ?market cap) and ?Veolia (chart ), ($11B ?market cap) are ?just a few. ?

Q4: What are ?OriginClear’?s criteria for ?acquiring a new ?company? What ?benefits does a ?water company ?gain by ?becoming a part ?of the ?OriginClear ?Group? ?
We have to ?make accretive ?acquisitions. ?Accretive means ?that the new ?company has to ?be profitable, ?with stability. ?
The company ?also needs to ?be on a growth ?path and have ?dynamic ?management with ?an expert team ?that’s ?going to stick ?around. Unlike ?many companies ?that destroy ?the companies ?they acquire, ?we keep their ?core management ?team and they ?function on ?their own with ?our guidance. ?
That stems ?from my own ?experience ?being acquired ?three times in ?my career, each ?time seeing my ?hard work ?thrown away. ?Sure, we made ?money, but ?what’s ?the point? Many ?entrepreneurs ?feel the same ?way, and we ?offer an ?opportunity for ?them to ?capitalize on ?their hard won ?success without ?destroying it ?in the process. ?
We do help our ?acquired ?companies as ?well. With our ?first ?acquisition we ?put an e-?commerce ?process in ?place that is ?driving not ?only product ?sales, but ?generating big ?ticket leads ?– right ?from the ?Internet. ?

Q5: Describe ?your experience ?acquiring your ?first company (?I assume it was ?Progressive ?Water Treatment ?– PWT). ?
Marc Stevens ?became excited ?about our ?technology and ?our vision, and ?we were able to ?quickly agree ?on a deal to ?acquire his ?company. That ?was a big win! ?
Progressive ?Water Treatment ?(PWT) is stable,? growing ?rapidly and has ?a fantastic ?reputation with ?its clients. ?The management, ?sales and ?engineering ?teams are ?dynamic. Marc ?is dedicated to ?helping us ?build the ?OriginClear ?Group, too. ?
We have ?learned a lot ?about the ?acquisition ?process after a ?year with PWT, ?and we are ?excited to ?announce our ?next deal to ?the world. ?

Q6: ?OriginClear ?made incredible ?revenue ?increases in ?2015 – ?nearly 6 times ?to previous ?years. How did ?the company ?achieve this ?growth? And ?what's the ?future plan for ?the company? ?
Our technology ?is making ?revenue, but ?licensing is ?where we have ?discovered real ?value. ?Royalties are a ?great income ?stream, but ?they take a ?while to ramp ?up. The ?addition of PWT ?made our ?revenue take ?off and brought ?us that much ?closer to ?profitability. ?
The OriginClear ?Technology team ?is currently ?closing some ?very large ?deals, so we ?think they will ?be contributing ?significant ?revenue in the ?second half of ?2016. PWT is ?growing as well.? Each ?acquisition ?will make our ?revenues jump ?and could ?ultimately make ?us very ?profitable. ?
Since we have ?already made ?the investment ?in the ?technology, ?these profits ?will directly ?drive more ?acquisitions, ?and ultimately, ?shareholder ?value – ?what Wall ?Street values ?most! ?

Q7: Tell us ?something about ?OriginClear’?s partnership ?with California ?State ?University at ?Bakersfield. ?Which sector ?will get help ?through this ?partnership and ?how?
We met Dr. ?Luis Cabrales ?at California ?State ?University ?Bakersfield (?CSUB) over a ?year ago and he ?was excited to ?turn his ?students into ?lab workers. ?This gives us a ?force of 22 ?helpers, during ?the school year,? to run a ?series of tests ?and many ?experiments. It ?also helps our ?visibility with ?the local oil ?industry ?community and I ?feel it’s ?led directly to ?the demonstration ?scale pilot we ?are currently ?helping a ?licensee ?operate in ?Bakersfield. ?
The university ?also invited us ?to speak at the ?Produced Water ?Conference it ?held in August ?in Bakersfield. ?They are highly ?supportive. ?
As a side ?benefit, oil ?workers laid ?off in the ?recent downturn ?are finding new ?skills in water ?treatment, an ?industry that ?is hardly ?likely to see a ?downturn! ?
We fully ?expect to ?restart with ?the CSUB in ?September as ?the new school ?year begins and ?are excited to ?learn new ?things about ?oil water ?treatment ?together. ?

Q8: We read ?that OriginClear ?sees a huge ?opportunity in ?Malaysia with ?palm oil waste. ?Can you tell us ?how palm oil ?affects the ?environment? ?And how can ?OriginClear ?address the ?problem? ?
Palm Oil Mill ?Effluent (POME) ?is the ?byproduct of ?harvesting palm ?oil. It’s ?said to be 100 ?times worse ?than domestic ?sewage. It is a ?thick brown ?sludge that can ?be incredibly ?harmful to the ?environment if ?not properly ?treated and ?disposed of. ?
Due to its ?high acidity ?and biological ?oxygen demand (?BOD), POME can ?be harmful to ?aquatic ?communities and ?cause algal ?blooms on the ?water’s ?surface. This ?can suffocate ?aquatic ?populations ?living in deep-?water ?environments. ?POME is ?sometimes ?released into ?open-air ponds ?for remediation,? but when left ?open to the air ?POME releases ?carbon dioxide, ?methane and ?hydrogen ?sulfide – ?all major ?contributors to ?global climate ?change. ?
EWS:AOx can ?uniquely clear ?up this oily ?sludge at high ?speed with zero ?chemicals and ?minimal energy ?requirements. ?
Recently, ?OriginClear ?formed a joint ?venture with ?Malaysia-based ?Osmocell, ?headed by two ?GE Water ?veterans, to ?clean up POME ?in the region. ?It’s ?called ?OriginClear ?Water Solutions,? and already it ?has a seven-?figure pipeline ?of business. ?
We want to ?take on tough ?challenges like ?these, because ?this is where ?we can make a ?real difference.?

Q9: OriginClear ?also has a ?significant ?presence in ?China's market, ?what is your ?experience ?working in the ?Asian water ?sector? ?
China has ?committed a ?third of a ?trillion ?dollars to ?water projects. ?Commercially, ?they are highly ?decisive ?and are ?motivated to ?change things ?fast. We ?created a ?master licensee ?in Hong Kong ?through which ?we are setting ?up joint ?ventures ?throughout the ?region. ?
Our most ?interesting ?project in the ?works is a ?system to clean ?up the “?black ?water” ?from a landfill ?– that ?will clean ?about 2000 tons ?of leachate per ?day! This is ?terrible water, ?and it fouls up ?all the ?existing ?filters and ?membranes. We ?can make that ?water clear! ?
We think that ?China will be a ?major focus for ?the company ?over the next ?five years. Yes,? piracy is a ?concern, but ?the Chinese are ?less interested ?in buying ?copies these ?days. They want ?the real thing, ?whether ?it’s a ?Bentley or an ?OriginClear ?water system! ?

Q10: How can ?OriginClear map ?out its impact ?on the water ?sector? And ?what's the ?future plan of ?the company? ?The world water ?market is ?doubling to a ?trillion ?dollars by 2020.? It’s ?this century’?s “blue ?gold.” ?
We can have a ?major impact in ?two ways. ?
First, by ?licensing our ?technology ?broadly, we can ?provide an ?economically-?viable solution ?for users to ?clean their ?tough water ?problems ?without the use ?of chemicals. ?This will ?greatly improve ?the economic ?feasibility of ?water treatment,? especially in ?the field ?– as we ?are demonstrating ?in Bakersfield. ?
Second, by ?acquiring a ?series of ?companies to ?which American ?industry is ?outsourcing its ?water problems, ?we will ?directly help ?bring about the ?decentralization ?revolution for ?water. That is ?huge. ?
Our plan is ?simple: ?continue to ?roll out our ?well-proven ?technology, and ?meanwhile, ?acquire fast-?growing, ?profitable ?companies. ?
We are excited ?to be helping ?to clean the ?most important ?commodity in ?the world: ?water. ?

Q11: What would ?you like to say ?to the ?technology ?companies and ?professionals ?present at The ?Water Network? ?How can they ?reach out to ?you if they ?have a ?breakthrough ?technology and ?sustainable ?running ?business model? ?
If you have a ?big water ?cleanup ?challenge, let ?us show you how ?we can handle ?it. If you are ?interested in ?adding killer ?technology to ?your own ?product line, ?contact us to ?become a ?licensee or ?start a joint ?venture. ?

And finally, ?if you are a ?water systems ?integrator in ?the USA, you ?owe it to ?yourself to ?check out ?OriginClear, ?the new success ?in water ?technology and ?solutions. ?
Just select the ?appropriate ?drop-down in our ?contact form, ?and tell us how ?we can work ?together. ?We’re ?expecting to ?hear from you!