Olmito Shift in the Paradigm Wastewater Treatment Protein Productio CO 2 Mitig
Nov 02, 2014
Olmito
A Shift in the Paradigm
Wastewater Treatment Protein Production
CO2 Mitigation
Three Universal Problems
1. Availability of Potable Water
“It’s all used up!”
2. Cost of Wastewater Treatment “They keep tightening the screws!”
3. Everyone is BROKE
”20th Century revenue model in a 21st Century world!”
One Solution
“ . . . .treating wastewater toa fully recyclable condition . . . and, making excellent profits intothe bargain . . . “
Shifts The Paradigm
Wastewater Treatment
The “process” itself makes a net profit and treated water is fully recyclable . . . even as potable water
Production of Protein
Duckweed produces 30 times as much – of a better protein - as soy beans on the same footprint.
Mitigation of CO2
Agriquatics duckweed consumes 3 times as much CO2
as does the same footprint of Amazon rainforest.
A Thumbnail Definition
The System
Treatment of Municipal and CAFO (concentrated animal
feeding operations) Wastewater to a completely recyclable (potable) condition by means of a proprietary, integrated system which incorporates:
Swirled and Laminar Flow means by which to separate raw influent solids and liquids;
Sonic and Mechanically Assisted Cell Lysis to aid solids breakdown
Phased-Sequenced Anaerobic Digestion and/or
Vermiculture-assisted reduction of the solids fraction;
Duckweed-Based Nutrient Removal from the liquid fraction; and
Integrated Extraction of Value from the resulting duckweeds and worms through aquaculture, extraction or other value-adding subsystems.
The Agriquatics System
Raw Influent
Pre-Treatment Solids/Liquids Separation
Anaerobic Digestion
Aquaculture
Nutrient & CO2 RemovalFiltering & Disinfection
Energy
Fish & Prawns
Pure
Water
$
$
$
Duckweeds
Agriquatics Municipal Wastewater Treatment System Flow Diagram
Grit & LargeSolids Removal Flow splitter
Laminar flowsolids separationarray
Hydrocyclonearray
Lemna Treatment Bioreactors remove nutrients & polish for toxins
Lemna Bioreactors
Finished waterstorage
Finishedwater filtration& disinfection
Clarified flow returned to head of system
Recycled
fully treatedflow
Raw M
unicipal Wastew
ater
Clarified water
Min
eral
s
Dis
pose
d
Phased Sequenced Digester Array
Elec
tric
ity
& H
eat
Nutrients
Aquaculture of Tilapia
Vermiculture System Drying & feed production
O2 and Disinfection
FishFeed
Treated water
Tilapia
Fish to
Marke
t
The Agriquatics Core: The Duckweed Bioreactor
The Lemna Gibba “mat” The “ball valve”
Harvesting with ball valve removed Harvested duckweed
The Agriquatics Engine: The Lemnaceae family “ . . . duckweed are the world’s fastest growing plants . . . “
Spirodella polyrhiza – so called “giant duckweed”
The Agriquatics Engine: The Lemnaceae family “ . . . duckweed are the world’s fastest growing plants . . . “
Spirodella polyrhiza mat
The Agriquatics Engine: The Lemnaceae family “ . . . duckweed are the world’s fastest growing plants . . . “
Wolffia arrhiza – the worlds smallest flowering plant
The Agriquatics Engine: The Lemnaceae family “ . . . duckweed are the world’s fastest growing plants . . . “
Wolffia arrhiza – flowering and seeding
The Agriquatics Engine: The Lemnaceae family “ . . . duckweed are the world’s fastest growing plants . . . “
Wolffia arrhiza mat
The Agriquatics Engine: The Lemnaceae family “ . . . duckweed are the world’s fastest growing plants . . . “
Lemna minor – so-called “common duckweed”
The Agriquatics Engine: The Lemnaceae family “ . . . duckweed are the world’s fastest growing plants . . . “
Lemna minor mat
The Agriquatics Engine: The Lemnaceae family “ . . . duckweed are the world’s fastest growing plants . . . “
Lemna gibba mat – our Barranca “crop”
The Agriquatics Engine: The Lemnaceae family “ . . . duckweed are the world’s fastest growing plants . . . “
Harvested Lemna gibba in Barranca “Parque Ecologico”
We’ve “farmed” duckweed on wastewater worldwide
Hookerton, NC WWT Plant Ayotlan, Jalisco WWT Plant
Ferrenafe, Peru WWT Plant Las Animas, Colorado WWT Plant
Kumudini Complex WWT Plant in Mirzapur, Bangladesh
Parque Ecologico WWT Plant in Santa Catalina, Barranca, Peru
The Agriquatics Cashbox: Intensive Aquaculture “ . . . the only aquaculture system now removing 100% of nitrogen (ammonia, nitrate and nitrite) & phosphorus from recirculating fish media . . . “
“ . . . the only aquaculture system now capturing 100% of the system wastes – including slaughtered fish wastes – leveraging it with photosynthesis, and feedingIt back to the fish . . The lowest cost intensive aquaculture system in the world . . . “
Water Reuse Domed Aquaculture
Tilapia
Barramundi
Arapaima /Paiche
IQF Fillets
Fresh Fillets
The unique dodecahedron dome and concentric ring structureallows “natural” air conditioning, aquaponics and continuous progression and harvesting of fish.
The Olmito Water Supply Corporation
Local Partner and Project Host• Located in the northern suburbs of Brownsville, Texas• Serves a population of around 2,000 households• Equipped to provide 2 MGD of potable water• Permitted to treat 0.75 MGD of wastewater
• 2012 Budget:• Expenditures $1.7 million• Debt Service $200K• Revenues $1.85 million• Net Revenues $150K
• Lending Institutions:• USDA• Texas Department of Transportation• Texas Water Development Board• Private Banks
The Olmito Water Supply Corporation
Commitment to Olmito Agriquatics• Wastewater – All existing and future flows in service area• Lagoons – 40 acres of existing lagoons• Land – 60 acres of adjacent land• Permit – Initial startup permit to treat 0.75 MGD• Debt Guarantees – Up to $7 million in service revenue guarantees• Grant receiving context – 501(c) 3
• Expansion Context:• Context for treating flows of neighboring jurisdictions:
• Los Fresnos – 2+ MGD• Brownsville – 4+ MGD• Rancho Viejo – 0.6 MGD• Internal Service expansion: 0.5 MGD
• Management and Personnel Assistance:• Board of Director Members• Management Assistance• Personnel Assistance
• Active Relationship with Lending Institutions:• USDA• Texas Department of Transportation• Texas Water Development Board• Private Banks
Looking across Olmito Lagoon #1
Looking down the divide between Olmito Lagoons #1 and #2
The Olmito Constructed WetlandPolishing Zone
Olmito treated discharge
Looking across the AgriquaticsZone
The Olmito Agriquatics ProjectA Thumbnail Business Plan
Agriquatics Olmito, LLC Corporate Structure
Agriquatic, LLC OWSC
Olmito Agriquatics, LLC
Investor 1(no “B” to “A” conversion)
Investor 3( Yr 5 “B” to “A”
conversion)
NadBank
USDA/TWDB
PrivateBanks
Olmito Households
50% “A” Stock
& D
ividends
$100K Cash, Technol. &
managem
ent
47% Stock
& D
ividends
$100K Cash, Land & Loan G
uarantees
22% Preferred “B”
plus 100% payback
$1 million cash
“B” plus payback
$100K Investment
payback + 3% “A”
$200K in
vestm
ent
Debt service
$1.9 million LOC
Debt service
$4.0 m. term loan
Debt se
rvice
$4.38 m. te
rm lo
an
Enhanced Services
Reduced Tariffs
Investor 2(no “B” to “A” conversion)
• Agriquatics LLC – $1.09 million in Yr5 for a total of: $1.09 million
• OWSC – $1.024 million in Yr5 for a total of: $1.024 million
• Investor 1 ($1.0 m) – $0.22 million in Yr5 for a total of $1.22 million
• Investor 2 ($0.1 m) – $0.022 million in Yr5 for a total of $0.122 million
• Investor 3 ($0.2 m) – $0.065 million in Yr5 for a total of $0.265 million
• Olmito Households – $1.9 million in fees paid to OWSC, and $1.09
million in existing debt retired with AO dividends.
• NadBank – $0.67 million in debt service payments in Yr5
• USDA/TWDB – $0.59 million in debt service payments in Yr5.
Agriquatics Olmito: End of Yr5 Consequences to “Players”
The Olmito Agriquatics ProjectA Brief Time Line
2012 • Cash investment committed• Pre-engineering & Project Planning• TCEQ engaged• Banks & Financial Institutions engaged & lending in place• Commence engineering
2013 • Engineering Plans completed• Environmental Assessments completed• Provisional Permits in place • Commence construction• Begin treatment on project “front end.”
2014 • Finish core system construction• Build up to full treatment of wastewater and production of fish• Continue Landscaping and Park construction
The Olmito Agriquatics ProjectAn Offer to Investors
The Investor Provides:
• A Cash Investment of $1.3 million in 2012
The Investor Receives:
• A “First-In-First-Out” commitment on Pay-Back(Estimated completion of pay-back by 2015)
• Convertible “B” Preferred Units (shares) paying 22%(Conversion option through 2017 for 20% of Company)
• 1 Seat on a 5-Man Board of Directors
• First-Right-of-Refusal for Subsequent Projects
The Olmito Agriquatics ProjectThe Core Agriquatics Team
Paul Skillicorn• Technology developer – Engineer, Economist, Manager• Agriquatics CEO• 35 years duckweed and aquaculture experience• 35 years management and development experience throughout
Victor Treviño • Harvard MPA – Management & Public Administration• Olmito General Manager• 25 years municipal management water company management
Charles Taylor • Economist – Agricultural Economist – Rural Development Expert• Kenaf Industries CEO • Plastics and agribusiness extensions
Stan Harmon• Class Three WWT Operator• Advanced Aquaculture Expert• Landscape Designer / Artist
The Olmito Agriquatics ProjectNext Steps
Investor Commitment
Formal Joint Venture Agreement among Parties
Create Olmito Agriquatics, LLC – Setup Operations
Pre-Engineering and Project “Articulation”
Lobby / Negotiate with Financing Institutions • USDA Rural Development • Texas Water Development Board• NadBank / BECC• EPA
Engage TCEQ (Cognizant Texas Regulatory Authority)
Commence Working on Engineering and Environmental Assessment
The Olmito Agriquatics ProjectThe Value Proposition
Wastewater treatment moves from major liability to a strong profit center
Protein production moves to another dimension with respect to both quality and productivity
Fish production efficiencies approach those of poultry with respect to both conversion efficiencies and total costs
Wastewater is treated to a fully potable condition -- bringing “recycle value” to its maximum potential
With “Water in Hand” on the periphery of a major metropolis – real estate capital gains are maximized
The Olmito Agriquatics ProjectKiller Comparative Advantages in Wastewater Treatment
Profit-making operations – first WWT system in the world to do so
Treatment to a much higher quality standard – potable water output
More forgiving system – 10 to 15 day hydraulic buffer – no “surprises”
Attractive, odor-free treatment facilities – Can be “modularized,” distributed and phrased as parks to meet “greenspace” commitments throughout the city
Distributed treatment -- Means less investment in mains and lift stations
Inexpensive systems – Can be amortized in 5 years and “moved” – again and again – ensuring value-retention in real estate (massive potential capital gains)
Environmentally superior – Treatment uses minimal electricity. Duckweed consumes 3 times as much net CO2 as the Amazon rainforest.
The Olmito Agriquatics ProjectKiller Comparative Advantages in Water Supply
A completely new source of water for every municipality – Enough water, with 100% reuse, to quadruple existing supplies.
A new source of water that is already distributed throughout the larger urban area – minimal requirements for massively expensive mains, pumps and pumping
A new source of water that requires no treatment – provided directly to the municipality in a potable water condition, the new water supply obviates the need for massively expensive water treatment plants.
A new source of water that keeps coming back – allowing seemingly “indulgent water use” without cost to the environment, cost to the city or applying stress on existing available resources.
The Olmito Agriquatics ProjectKiller Comparative Advantages in Aquaculture
Complete removal of nitrogen & phosphorus in a recirculating aquaculture system – resulting in significantly higher production efficiencies and zero discharge of water at the “end of a cycle.”
Complete recovery and reuse of all uneaten feed and fish/prawn wastes, plus a photosynthetic “boost” – results in dramatically lower feed costs and higher production efficiencies.
Complete recovery and reuse of all fish processing wastes – gut, skin, head and fin recovery and reuse results in significantly lower feed costs and higher production efficiencies.
System design allows continuous output on batch inputs, with higher and more consistent product quality – resulting in lower processing costs and higher returns per lb of fish delivered to the market place.
The Olmito Agriquatics Project
Note: The only product assumed to be manufactured in this scenario is the “Milled to <10 microns” duckweed powder. AllOther products may, however, be produced under differing, feasible scenarios.
Key Parameter Values & Assumptions
The Olmito Agriquatics Project
Key Parameter Values & Assumptions
The Olmito Agriquatics ProjectKey Parameter Values & Assumptions
The Olmito Agriquatics Project
Questions?