Bion’s Commercialization Takes a Big Step Forward

This green technology company that helps ranchers turn cattle manure into money is partnering with a Nebraska cattle feeding operation to set up a system to recover biogas, high-value organic fertilizers, and clean water from the waste. That’s just the beginning…

The capture of the biogas and fertilizers — if they are NOT captured, they become huge air and water pollution problems — is independently verified, recorded on blockchain, and becomes the backbone of a USDA-certified sustainable brand that commands premium pricing. Nice double dip and the basis for a fascinating business model that gets paid more than once for doing the same thing.

Bion Environmental Technologies Inc. (BNET:OTCQB) and Olson Farms/TD Angus, a farming and custom cattle feeding business, are developing a 45,000-head sustainable beef cattle feeding operation near the Nebraska Sandhills.

They are producing a new kind of beef for a changing market — beef that is both environmentally sustainable AND economically sustainable for the ranchers who feed us. Sustainability, reducing environmental impacts, ESG … all are a hot topic these days, but they don’t happen without a viable industry to support them. And the industry is moving that way…

Olson Farms/TD Angus, is a founding member of Sustainable Beef LLC, a rancher/producer-owned packing company that is being developed in North Platte, Nebraska. The 500,000 square-foot plant will have the capacity to process about 1,500 cattle per day and is expected to be operational in late 2024. David Briggs, chief executive officer of Sustainable Beef, said in a Drovers article, “We set out on a journey two years ago to create a new beef processing plant to add some capacity to the industry and provide an opportunity for producers to integrate their business of raising quality cattle with the beef processing portion of the industry and do it in a sustainable manner. During this journey we found that Sustainable Beef and Walmart aligned on continuing to improve how we care for our animals and crops and provide consumers the positive experience of enjoying quality beef.”

In an Aug. 31,2022, press release, Walmart Inc. (WMT:NYSE) reported it had acquired a minority stake in Sustainable Beef LLC. Tyler Lehr, senior vice president of merchandising for deli services, meat, and seafood at Walmart U.S., commented on the investment, saying, "At Walmart, we are dedicated to providing high-quality, affordable beef to our customers, and an investment in Sustainable Beef LLC will give us even more access to these products, We know Sustainable Beef LLC has a responsible approach to beef processing, one that includes creating long-term growth for cattle ranchers and family farmers.”

CDC Points Out Rising Need for Bion’s Treatment 

The beef industry creates more than 1.5 billion tons of manure annually, contributing to the contamination of surface water and rivers. According to the U.S. Environmental Protection Agency, livestock manure nutrients “have real value as a fertilizer” for farmers, gardeners, and landscapers, but untreated manure from animal feeding operations can contaminate surface water with pathogens such as E. coli, hormones, antibiotics, and chemicals like nitrates, phosphorous, and ammonia, the Centers for Disease Control stated. That untreated waste contributes to greenhouse gases such as methane, cause harmful algae blooms and dead zones in bodies of water, contaminate groundwater, and contribute to antibiotic resistance.

Bion’s comprehensive treatment and production platform uses a specially designed barn where manure is collected 24/7 and fed to an anaerobic digester to produce pipeline-quality gas, and a separately housed Gen3Tech treatment system to apply biological, thermal, and mechanical processes to the animal waste, creating high-value organic fertilizers, clean water, and clean air and water credits. And bottom-line: consumers get truly sustainable grain-fed beef with a pedigree they can trace back to the source.

Long term trends clearly show today’s consumers are increasingly demanding more sustainable practices and more importantly, they are willing to pay for more for that peace of mind.

Bion is inspired by Olson Farms/TD Angus’ “vision to produce cattle that are better for the consumer, better for the planet, and better for the producer,” Bion Chief Executive Officer Bill O’Neill said. “That’s a perfect complement to our own vision and Bion’s mission.”

But the main product is blockchain-verified, sustainable and grain-finished meat for the US$66 billion-a-year beef industry.

Catalyst: Bion Plans  675K Head Capacity by 2028

The Bion and Oslon Farms/TD Angus facility will have three of Bion’s 15,000-head modules, including barns with solar panels, manure collection and conditioning, biogas recovery, ammonia capture and production of organic fertilizer products, and clean water recovery. The processes and performance of the treatment platform will be third-party verified, USDA-certified, and recorded on the blockchain to support transparency, Bion stated. It will be a “perfect fit” with Olson Farms/TD Angus’ “conception to consumer” model, which will see TD Angus bulls sired across the country and fed at their yard, and processed at the new plant, said Trey Wasserburger, partner at Olson Farms/TD Angus.

 "The company is involved in the green technology space, which is a good area to be in with the climate change movement driving a lot of changes and developments," Clive Maund.

“Until now, beef sustainability has always been a proclamation,” Wasserburger said. “We look forward to supplying beef that is truly sustainable, for producers and the environment alike, and that have the pedigree and production history to verify it.”

Bion said the companies would work together early this year to create a joint venture, with construction expected to start in H2 of 2023. Initial beef and co-product revenues are expected by the end of 2024, ramping up to the production of 138,000 head of cattle annually starting in 2025. Bion’s larger plans include building to 450,000 to 675,000 head capacity by 2028.

Alliance Global Partners analyst Jeffrey Campbell initiated coverage on Bion on Aug. 3, 2022, with a Buy rating and a target of US$3.00 per share.

Newsletter writer Clive Maund of Clivemaund.com follows the company.

“The company is involved in the green technology space, which is a good area to be in with the climate change movement driving a lot of changes and developments,” Maund wrote Aug 4. “It certainly cannot be claimed that the company has not been preparing for the times that we now find ourselves in and the times ahead.”

He predicted a major uptrend for Bion, and it went from US$1.17 on Aug. 4 to US$1.68 on Aug. 29. The stock closed at US$1.39 on Friday.

Ownership and Share Structure

According to Reuters, 28.25% of Bion's stock is owned by management and strategic entities, 0.10% is with institutions, and the rest is in retail.

The stock is covered by several newsletter writers, including Maund, Matt Badiali, and Chris Temple, editor of The National Investor. Click "See more live data" in the data box above to read more of what they are saying.

Bion has a market cap of US$60.64 million and 43.6 million shares outstanding, 31.3 million of them free-floating. It trades in a 52-week range of US$1.75 and US$0.505.

Disclosures:

1) Steve Sobek compiled this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

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