BOURNE, Mass., March 18, 2008 – Environmental Operating Solutions, Inc. (EOS) announced today that the company has closed the first tranche of a $2.5 million institutional financing round led by Stuart Mill Venture Partners, with the second tranche expected to close in 2Q 2008. EOS is an environmental technology company that develops and markets green chemicals specifically engineered for the purification of water. The company will use the initial investment proceeds to expand manufacturing and distribution capabilities for its proprietary line of liquid carbon products that remove nitrogen from wastewater. EOS will use the second tranche of financing to broaden its denitrification technical capabilities and to support research and new product development.
Excessive accumulation of nitrogen in surface and groundwater is an ecological and public health concern that has been linked to serious ecosystem damage, fish and shellfish kills, and contamination of drinking water supplies. Denitrification of water discharged from wastewater treatment facilities is a focal point of regulatory action, particularly in coastal areas such as the Chesapeake Bay, Long Island Sound, and Florida. EOS line of MicroC products safely and effectively denitrify water discharged from wastewater treatment plants to achieve regulatory compliance while avoiding the hazards and limitations of standard liquid methanol, including toxicity, flammability, price volatility, and nonrenewable natural gas sourcing. EOS launched MicroC in the northeastern U.S. wastewater treatment market in 2003 and MicroC G in 2006, and the company currently has more than 185 wastewater treatment plant customers ranging in size from small plants serving schools and condominium complexes to large municipal wastewater treatment facilities.
“With this financing, EOS is positioned to rapidly expand operations beyond our current Boston and Baltimore manufacturing facilities to serve our growing customer base nationwide and around the globe,”said Eric Stoermer, President and Chief Executive Officer of EOS. “In addition, these funds will enable us to undertake the research and technical development required to engineer continuing improvements in our denitrification products and to develop new products, including products potentially derived from waste materials.”
“Driven by increasingly stringent regulatory limits on the amount of nitrogen allowed into the environment, wastewater treatment facilities are seeking a safe and reliable upgrade for enhanced nitrogen removal,” said Jeff Salinger, Managing Partner with Stuart Mill Venture Partners. “As this market expands, we believe that EOS’ technical expertise and long-term commitment to innovation and product development will lead denitrification efforts as plants increasingly choose safer and environmentally sustainable products over methanol and other less consistent carbon sources. We look forward to being a part of EOS’ success as the company builds its national and international production and distribution network.”
About Wastewater Denitrification
Nitrogen pollution is an environmental problem worldwide. It is estimated that more than 10,000 water bodies in the U.S. are currently impaired by nitrogen or phosphorous pollution, with 49 states citing nutrients or excessive algal growth impairments. Nutrient pollution has been identified as the principal cause of water quality problems in the Chesapeake Bay, Long Island Sound, and North Carolina estuaries, as well as the continuing expansion of the Gulf of Mexico’s “dead zone”, a roughly 8,000-square-mile region that has very low oxygen concentrations and cannot support aquatic life due to nutrient pollution.
Pollutant nitrogen is typically found at high levels in wastewater and is removed using a biological process known as denitrification, which converts the nitrogen into harmless components (water, nitrogen gas, and carbon dioxide gas). An essential step in denitrification is the introduction of an electron donor/carbon source for the denitrifying bacteria. Methanol, a flammable and toxic liquid derived from nonrenewable natural gas, is the legacy carbon source used in wastewater denitrification. There is growing dissatisfaction in the wastewater treatment industry with the safety profile, performance limitations, and price volatility of methanol. In addition, increasingly stringent federal and state regulatory mandates are requiring wastewater treatment facilities to limit the amount of nitrogen released into receiving waters, resulting in costly technology upgrades and increased operational expenditures for wastewater treatment plants.
About MicroC and Micro C G
MicroC is a proprietary product developed by EOS specifically for use as an electron donor/carbon source in wastewater denitrification. MicroC was engineered to overcome the key limitations of methanol and other carbon sources, including:
- Improved Safety: MicroC G is nonflammable and nontoxic
- Environmental Sustainability: MicroC is developed from abundant and renewable agricultural raw materials
- Price Stability and Cost Effectiveness: MicroC offers a low-cost means of reducing nitrogen load and the potential to circumvent or scale back costly nitrogen-removal upgrades to comply with increasingly stringent regulatory requirements
- Improved Performance: MicroC enables faster denitrification startup and recovery periods, and improved performance in colder temperatures
MicroC products are currently in commercial use at a large number of wastewater treatment facilities in the U.S., and EOS recently introduced to the market MicroC G, a 100% green version of MicroC G with identical performance factors that is composed entirely of renewable components.
Stuart Mill Venture Partners, L.P. is a $20 million Northern Virginia-based fund investing principally in small- to medium-size companies with substantial growth prospects. The fund has a special focus on the clean technology sector but also considers investments in areas such as technology, travel/hospitality, and federal government services. In addition to providing growth capital, the fund offers experienced business guidance to its portfolio companies.
Environmental Operating Solutions, Inc. (EOS) is an environmental technology company providing innovative products for the purification of water. The company’s MicroC line of products (MicroC and MicroC G) target contaminant nitrogen at wastewater treatment facilities. EOS products currently provide more than 185 wastewater treatment plants in the United States with a safer, more effective, and environmentally sustainable solution compared with other carbon sources such as liquid methanol. In addition, the company offers technical services to help customers optimize the use of its denitrification products. EOS was established in 2003 and is based in Bourne, Massachusetts.