Wholly Owned Subsidiary Resource Environmental Group Services 'REGS' Receives Exclusive Manufacturing, Management and Remediation Services Contract & Exclusive Technology Licensing Rights to Water Remediation in the Mining Market Throughout U.S.
GOLDEN, CO -- (Marketwired) -- 10/26/17 -- Strategic Environmental & Energy Resources, Inc. (SEER) (OTCQB: SENR), a provider of environmental, renewable fuels and industrial waste stream management services, today announced that it has partnered with Biochar Now, ("BCN") a leading engineer and manufacturer of high-quality biochar. As a part of this new partnership, REGS, a wholly owned subsidiary of SEER, has received exclusive rights to perform all fabrication, manufacturing and environmental/remediation services required by BCN on all its water and soil clean up, reclamation or enhancement projects. In addition, REGS received an exclusive license under BCN's newly issued U.S. Patent Number 9,650,261 B2 (May 16, 2017) arising out of and related to water reclamation and clean up in and around the mining industry; a market REGS has serviced in the past. This license will be granted to a joint venture owned 90% by SEER and 10% by BCN.
As part of the partnership, SEER made a $300,000 loan to BCN. The loan is in a super-priority position and paid back out of gross sale proceeds from BCN's currently operating Berthoud, Colorado production facility. For the loan, SEER has also received a small equity interest of approximately one percent of the privately held BCN.
BCN, and its patented production technology, is emerging as one of the nation's premier producer of biochar. Biochar, considered as a more cost-effective alternative to activated carbon, is a solid material, obtained through thermochemical conversion of biomass (primarily wood) in a kiln. BCN has proprietary and patented procedures for this process resulting in a superior biochar product. The superiority of the BCN product has already been recognized by several states and many of the country's largest industrial and chemical companies that are currently developing programs and remediation plans to utilize the BCN product. All of these programs and remediation plans represent opportunities for REGS to provide services and support. The BCN product also has large potential for landfill soil remediation, a market that supplements MV's LFG gas capture technologies. Biochar has several applications within the reclamation market, from improving soil quality in agricultural, to removing various pollutants and unwanted components from water, such as phosphorous, mercury, arsenic and pesticides. REGS has already begun to work with leading water experts and service companies to expedite the deployment of this technology within the water treatment market.
The addressable opportunity is significant, as the water recycling market is expected to grow 13.1% annually through 2021, to $22.3B, according to BCC Research. As the number and scale of environmental cleanup projects around the world increase, the activated carbon global market, estimated to be $3 billion in 2015, is expected to exceed $10 billion by 2024 according to grandviewresearch.com. The superior quality biochar produced by Biochar Now is now being recognized by many industries and engineers as a more cost-effective and superior substitute for activated carbon in many applications.
Given REGS' exclusive license and operational background in several Colorado mines, biochar is especially relevant for the mining industry, where it can sequester heavy metals and acids in the soil, preventing them from entering local water supplies. This more rapidly facilitates the return of vegetation, expediting the traditionally costly process of mine reclamation. In one study by the U.S. Forest Service, biochar performed better for re-vegetation than compost alone by 313%.
"This new partnership is part of SEER's ongoing effort to leverage REGS' 25 years of environmental service experience and diversify its business model into new mature and lucrative verticals," said John Combs, SEER's President and CEO. "The addressable market for biochar is significant and growing rapidly. This fits perfectly into SEER's business portfolio objectives and presents an exciting and imminent revenue growth opportunity for SEER. We are particularly interested in the joint marketing opportunities between MV and BCN in the landfill market and have already begun discussions with a large landfill operator in Florida where MV has one of its largest LFG systems. In addition to this promising landfill opportunity, we have a potential pipeline of projects on the East Coast and in South Florida through our relationship with Biochar Now with some of the nation's largest industrial and chemical companies where REGS could provide service work and project management, in addition to manufacturing the kilns that would be required to fulfill increased product demand. We look forward to announcing these projects in the months to come," concluded Combs.
"We couldn't have found a better fit as service and support partners than SEER and its affiliated companies, especially REGS," said James Gaspard, BCN's CEO. "REGS is right here in our backyard, they have used our biochar over the last year, they have impressive fabrication capabilities, and we are familiar with REGS' great reputation for service in the greater front-range area for over 20 years. In addition, SEER's other divisions, MV, SEM and Paragon, also bring expertise and experience in closely related areas such as gas conditioning, environmental materials production, pyrolysis, and solid waste destruction. All of these synergies make for multiple and potentially very lucrative opportunities for our companies as we can now offer services as part of our product offerings," continued Gaspard.
"As a real-world example of the possible synergies, in just a few weeks of joint marketing with SEER, Biochar Now has been able to identify and add millions of dollars to our product sales pipeline with companies that had already expressed interest in using our product after successful testing, but needed the full-service solution offered by REGS to implement our product in their processes," concluded Gaspard.
About Resource Environmental Group Services (REGS)
Resource Environmental Group Services (REGS) is a wholly owned subsidiary of Strategic Environmental & Energy Resources, Inc. (SEER). Founded in 1994, REGS provides industrial and environmental services to the petroleum industry, various industrial and manufacturing clients, medical facilities, universities, government entities, and environmental and consulting firms in the Western United States. REGS utilizes state-of-the-art equipment and technologies to provide the most efficient and environmentally safe services in the industry. As the developer of the first non-entry closed-loop cleaning process for stationary tanks, REGS can provide the lowest cost cleaning options for your tanks, as well as offer additional savings in down-time and waste reduction. REGS' experience and knowledge in dealing with a myriad of environmental regulations can ensure that its client companies' environmental programs are proactive and compliant. REGS offers its clients flexibility by providing turnkey project services or supplemental services on an as needed basis. For more information on REGS, please visit: www.regs-llc.com.
About Strategic Environmental & Energy Resources, Inc.
Strategic Environmental & Energy Resources, Inc. (SEER) (OTCQB: SENR), identifies, secures, and commercializes patented and proprietary environmental clean technologies in several multibillion dollar sectors (including oil & gas, renewable fuels, and all types of waste management, both solid and gaseous) for the purpose of either destroying/minimizing hazardous waste streams more safely and at lower cost than any competitive alternative, and/or processing the waste for use as a renewable fuel for the benefit of the customers and the environment. SEER has three wholly-owned operating subsidiaries: REGS, LLC; MV Technologies, LLC and SEER Environmental Materials, LLC; and two majority-owned subsidiaries: Paragon Waste Solutions, LLC; and ReaCH4biogas ("Reach"). For more information about the Company visit: www.seer-corp.com.
Forward Looking Statements
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Source: Strategic Environmental & Energy Resources, Inc.
Released October 26, 2017