374Water (SCWO) Gabelli Funds' 2nd PFAS Symposium summary

Technology and innovation in PFAS destruction

• Transitioning from traditional waste disposal to destruction technologies is critical for addressing PFAS contamination, as legacy methods like incineration and landfills only relocate the problem without destroying contaminants.

• AirSCWO, a proprietary supercritical water oxidation technology, destroys organic waste streams, meeting or exceeding EPA standards, and is designed to be both an augmentation and a replacement for existing waste management processes.

• The technology is exothermic, generating energy that can be reused within facilities or supplied to the power grid, and is capable of processing a wide range of organic contaminants from biosolids, landfill leachate, firefighting foam, and industrial waste.

• Modular and mobile units, ranging from one to 200 tons per day, are being developed to address diverse customer needs, with current deployments including a six-ton unit operational in Orlando and plans for larger bespoke systems starting in 2025.

• The company is scaling up R&D and manufacturing, doubling its lab size, and engaging in demonstration contracts with municipalities, federal agencies, and industrial partners.

Market opportunity and commercialization strategy

• The addressable global market for PFAS and organic waste destruction is estimated at $250 billion, with a $1.6 billion identified pipeline in the U.S. alone, including contracts with municipal and federal entities.

• There are approximately 16,000 municipal wastewater treatment plants in the U.S., all facing PFAS challenges, and the company is targeting municipal, federal, industrial, and commercial markets.

• Strategic partnerships, such as with Merrell Bros., have enabled on-site technology development and scaling, while revenue-sharing opportunities with TSDF facilities are being pursued.

• The commercialization timeline anticipates initial commercial scale within 12–18 months, with revenue growth expected in 2025 and a target for cash flow positivity by 2027.

• Projected revenues for 2025 are around $26 million, with continued investment in engineering, manufacturing, and R&D to support rapid scaling and market penetration.

Regulatory and industry context

• Regulatory momentum, including new EPA standards and increased litigation risk, is driving demand for effective PFAS destruction solutions.

• The EPA has set enforceable standards for PFAS in drinking water and designated key PFAS as hazardous substances under CERCLA, compelling polluters to fund remediation.

• Federal funding, such as $10 billion from the Bipartisan Infrastructure Law, is supporting PFAS treatment infrastructure, with most applicants focusing on drinking water solutions.

• The EPA is coordinating with multiple federal agencies and states to address PFAS through research, regulation, and enforcement, emphasizing equity and environmental justice.

• Industry innovation, driven by regulation, is expected to lower costs and expand domestic capacity for PFAS treatment technologies.