Coupling algae farming with the use of CO2 emissions from power plants. That's the revolutionary idea behind Pond Technologies' (TSX.V:POND; FRA:4O0) platform technology. Now, Pond has found its first major Canadian industry partner in the natural gas sector that is ready to implement this concept on a large scale.
Pond announced that CSV MIDSTREAM Solutions Corp. of Calgary, Canada, has awarded a contract for an engineering study to build an integrated algae cultivation facility. CSV Midstream is a Calgary-based natural gas and liquefied natural gas infrastructure company that seeks to improve the sustainability of Western Canada's natural gas industry. CSV Midstream says it provides innovative solutions in the engineering, design, construction, operation and management of natural gas facilities and oversees three facilities in Alberta. In perspective, the partnership with CSV Midstream offers Pond the opportunity to establish itself in the oil and gas sector.
Pond and CSV Midstream have signed a letter of intent (LOI) for the initial technical study. The LOI includes the design and construction of an algae facility that will utilize emissions from one of CSV's natural gas facilities near Grande Prairie, Alberta. Upon completion of the technical study and a positive final investment decision by CSV, the first stage of development would be an algae facility that Pond would use to produce the algae-based antioxidant astaxanthin. Pond would provide the technical services, proprietary equipment and operational support. Pond and CSV anticipate that once the first stage is successfully completed, there will be further scale-up opportunities to absorb more carbon emissions.
Grant Smith, Pond's president and CEO, said, "The completion of this LOI with CSV is another example of the importance of Pond's vertically integrated platform. The proposed algae plant would enhance our supply of Canadian-grown astaxanthin to Pond Naturals. Pond has the extensive technical expertise to ensure execution in the construction, operation and maintenance of this future algae facility, and we are excited to partner with CSV. CSV, as a values-driven company, is the perfect partner to test Pond's technology in Alberta, and we believe this is the beginning of a relationship marked by milestones."
Daniel Clarke, CEO of CSV, said, "CSV was founded on the principles of advancing innovative and new technologies that we use to promote sustainability across Alberta, with maximum impact and scalability. We chose Pond to continue to have a positive impact on the communities where we work and our natural environment. We are committed to being the leading provider of midstream solutions and creating shared value through sustainable business practices, and this relationship with Pond reflects that mindset."
Bottom line: Partnering with an expert industry partner in the natural gas and power sectors provides Pond with a long-awaited opportunity to demonstrate the benefits of its technology under real industry conditions. Ideally, both partners would benefit: CSV could reduce CO2 emissions from its power plants. Pond would gain greater quantities of valuable astaxanthin for its own sales and marketing of its dietary supplements business. Once the reference plant is up and running, the opportunity to enter the entire oil and gas industry in Canada and beyond opens up in perspective. The realization is: CO2 is plant food! Perhaps one day, power plants whose valuable combustion product, CO2, escapes unused into the atmosphere will no longer be permitted.
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