Image via cvat.info
There are plenty of very real risks in the world today, such as infectious disease, fiscal crises and weapons of mass destruction. However, according to the World Economic Forum in January 2015, the single biggest risk—based upon impact to society as a measure of devastation—is a water crisis that has some 660 million people worldwide lacking access to safe drinking water. Cavitation Technologies, Inc. (OTCQB: CVAT) has spent years developing a platform that, while mostly used today in edible oil refining, can fill a void in water treatment and many other applications in an environmentally friendly manner.
The ramifications of poor water conditions run deep and can be deadly. Lack of clean water compromises safety and can be attributed to high death rates throughout history in developed nations. Aside from the high expense of health, there is a clear socioeconomic impact also. Children in developing nations often spend part of their days searching for clean water, making education a challenge. In a more general sense, economic opportunities are virtually non-existent in countries without clean water, causing GDP to stagnate.
For nearly 620 million people across Africa and Asia, these threats are persistent today.
Treating the Clean Water Crunch
Here’s where Cavitation Technologies could potentially make a huge impact. The company shares its name with the powerful natural process involving changes in pressure that generates cavities in flowing fluids (“bubbles” of sorts) that release energy as they implode. The company, which goes by CTi for short, has harnessed the power of cavitation and controls the process in its CTi Nano Reactor system, which is built upon the company’s Nano Neutralization process. The system is used across the world to improve yield, lower operating costs and reduce environmental impact in the production of high-quality consumable oils such as vegetable, soybean and palm, to name a few.
CTi’s patented Cavitation & Electrocoagulation System is a high-efficiency purification process for treating waste water. Underscored by CTi’s deep understanding of cavitation, the system can remove any number of contaminants from the water, ranging from deadly pathogens like bacteria and viruses to heavy metals, fats, grease, etc. to facilitate making unhealthy water potable.
Moreover, it shouldn’t be assumed that only under-developed nations could benefit from CTi’s water purification system. Wastewater treatment is a multi-billion-dollar market in the U.S. today and expected to command over $11 billion in capex from municipal utilities by 2025, according to analysts at Bluefield Research in a 2015 report. Droughts and water shortages in populous states like California and Florida, not to mention contaminated water in Michigan and California, have put a spotlight on leveraging technology for water re-use.
When considering that the U.S., the most advanced country in the world, has a water infrastructure that earns a horrible D- on the American Society of Civil Engineers’ report card, the domestic opportunity may be even greater than it seems at first blush. It’s an opportunity where CTi could provide an efficient solution with a quick return on investment.
Furthermore, CTi’s C&E System, which uses substantially less chemicals, has many benefits versus traditional chemical processes to purify water. For starters, sludge, a costly, disposable byproduct of wastewater treatment, is reduced by more than half. The technology also slashes energy consumption, increases yield and requires less resources to run and maintain. In the aggregate, it also comes with the perk of meaning transportations costs (and vehicle emissions) and other associated liabilities are reduced.
Edible Oil Markets a Solid Foundation
CTi’s high pressure, flow-through solutions and processes are developed to address the growing needs in both the industrial and consumer markets. In fact, CTi has a strategic partner in industry giant Desmet Ballestra Group for marketing the Nano Reactor system. Sales have been particularly strong so far in 2017, with orders for six systems already disclosed, including the first from Vietnam last month, representing the tenth install overall in Asia.
Owing to a swelling global population and advancements in developing nations, global production of vegetable oils has experienced constant growth, estimated on Statista.com to have reached 179.56 million metric tons in 2016. Zion Market Research in December forecast the broad market of palm oil derivatives, including edible oils, cosmetics, lubricants, bio-diesel and more, to climb from $65.73 billion in 2015 to $92.84 billion in 2021.
Cavitation has diversified uses for its technologies, positioning it as an up and coming market leader. Testing showed that the technology is viable for upgrading petroleum by improving viscosity and API gravity for extended periods of time. This results in lower pumping and atomization expenses and higher refining yields, outcomes that the capital-challenged oil industry is looking for against the backdrop of stubbornly low crude prices.
Also in the energy patch, there are benefits within the biodiesel space, where continuous flow-through cavitation has been proven the most efficient way to produce biodiesel from a variety of feed stock, such as vegetable oils and animal fats. CTI’s Nano Cavitation reactor is remarkably versatile, with a litany of uses related to creating biomass and biofuel. As with other applications, yields and quality are improved, while reducing associated costs and impact on the planet.
Just the Tip of the Opportunity Iceberg
For the consumer space, the company recently deepened its roots in the beverage enhancement business, as well as positioned itself for vertical growth opportunities. Cavitation was already experienced in using its technology to expedite wine aging and in the production of other alcohol. In fact, its technology was used in 2015 on production of Cameo Vodka, the only US made vodka that was awarded 95 points by www.tastings.com, the most prestigious exhibition in the world.
In February, Cavitation successfully completed testing of its new CaviTune Super Mixer based on low pressure cavitation. The technology is applicable for any industry where low pressure processing of large volumes of fluids is required, meaning that the beverage market is an ideal candidate, as are the coatings, fuels, chemical processing industries and the burgeoning legal cannabis market.
A new partnership with privately-held CBDual Biotechnology Corp. means the two companies will be sharing intellectual property pertaining to technology for producing pharmaceutical grade cannabis materials. The crux of the cross-licensing agreement is to combine each company’s expertise to create formulations of cannabis constituents called cannabinoids to capitalize on rapidly expanding consumer and biotechnology segments, as cannabis legalization spreads across the country.
A Brand You’ll Want to Get to Know
Many people probably have never even heard the word “cavitation,” much less understand the highly-technical process. Opportunity is easy to understand, though, and there are obviously countless uses where Cavitation Technologies’ patented and patent-pending processes can have a meaningful impact on the world across the industrial- and consumer-facing spectrum.
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