Bion Environmental Technologies Inc. (BNET:OTCQB) is developing a commercial-scale demonstration and optimization project in Fair Oaks, Indiana, for its Gen3Tech technology, which transforms cattle waste into renewable natural gas, fertilizer, and clean water.
The structure to house the system serving about 1,500 cattle has been completed, and the evaporator, pre-heaters, and associated thermal exchange units have been delivered to the site, the company said.
Successful operation at Fair Oaks will demonstrate Gen3Tech's scalability and generate data for full-scale project designs and various regulatory agencies.
Independent and self-described "disruptive and cleantech investor," PennyQueen called Bion a "great Buy."
"We are really looking forward to checking the boxes at Fair Oaks," Chief Executive Officer Bill O'Neill said. "While we know the technology works and moreover that it will perform even better as we scale it up, we understand it is critical that we prove that to our potential JV partners that have not been involved in our technology development."
Independent and self-described "disruptive and cleantech investor," PennyQueen called Bion a "great Buy."
"In plain English, they take animal poop and turn it into money," she wrote in January on Streetwise Reports.
The Catalyst: Finding Alternative Farming Practices
Demand for beef remains after the rise and fall of plant-based meat companies. According to a recent survey by Midan Marketing Research, three-quarters of Americans can't imagine giving up the taste of beef, and 62% purchase premium beef.
Also in January, newsletter writer Clive Maund of CliveMaund.com rated the stock a Buy and said it was a "solid long-term investment."
"I believe the lesson to be learned from it is two-fold, there is a great demand for alternatives to current farming practices, and there is still a massive demand for animal proteins," she wrote.
Also in January, newsletter writer Clive Maund of CliveMaund.com rated the stock a Buy and said it was a "solid long-term investment."
A couple of weeks later, after the share price jumped more than 50%, Maund advised taking partial profits. However, "Bion remains an exceedingly positive story, so we may buy back what we sell here after consolidation/reaction," he wrote.
Showrooms for Other Cattle Farmers
The livestock industry creates more than 1.5 billion tons of manure annually, contributing to climate change and the excess nutrient contamination of surface waters and groundwater aquifers.
Bion's platform uses a specially designed barn and separately housed treatment system to apply biological, thermal, and mechanical processes to animal waste, creating pipeline-quality natural gas, fertilizers, clean water, and clean air and water credits.
But the main product is blockchain-verified, USDA-certified, sustainable meat for the US$66 billion-a-year beef industry.
The company is working with a farming and custom cattle feeding business to develop a 45,000-head sustainable beef cattle feeding operation in Nebraska. It has also signed a letter of intent to a 15,000-head beef cattle feeding operation in Texas.
Both projects "will serve as a sort of showroom for other cattle farmers," PennyQueen wrote. "I expect to see significantly increased demand for their systems after a successful launch of either project."
Designing Optimal Performance
O'Neill said the Fair Oaks facility will "produce the data that will allow us to design optimal performance into our 15,000-head facilities that support the projects we intend to begin developing this year."
The remaining units for the demonstration facility — including distillation and absorption columns, diffusion tanks, and defoaming units — were being inspected by the vendor before their delivery in Indiana. Bion expects assembly of the facility to be finished in mid-April, with startup and preliminary data following soon after.
The Fair Oaks facility is designed to treat and recover ammonia from the waste load of about 1,500 cattle, the company said. Once optimized operations have been achieved, it will have the data needed for the final designs of systems needed to treat the waste of 15,000-head modules.
The company will then be able to move forward on financing and permitting for projects on multiple fronts.
"I see BION being a steady grower over the next few years. These projects take time to develop, but it is hard to deny that they are gaining momentum," PennyQueen wrote. "I am hoping to see additional deals in the coming months."
Ownership and Share Structure
Streetwise Ownership Overview*
Bion Environmental Technologies Inc. (BNET:OTCQB)
About 44% of the company is held by management and insiders; the rest is 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 view more of what they are saying.
Bion has a market cap of US$74.16 million and 43.6 million shares outstanding, 31.3 million of them free-floating. It trades in a 52-week range of US$2.30 and US$0.505.
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