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

Technology and innovation in PFAS destruction

• Transitioning from traditional waste disposal to destruction technologies is essential 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 at high temperature and pressure, producing water, inert minerals, vent gas, and energy, and meets or exceeds EPA standards.

• The system is exothermic, allowing for energy recovery and potential reintegration into facilities or the power grid.

• The technology is applicable to a wide range of organic waste, including biosolids, landfill leachate, firefighting foam, and industrial waste from sectors like pharmaceuticals and electronics.

• Modular, mobile units are being developed for rapid deployment, with plans to scale from small (1 ton/day) to large (100–200 ton/day) systems by 2025 and beyond.

Commercialization and market opportunity

• The company is moving from R&D to commercial scale, with a $1.6 billion identified pipeline and contracts with municipal and federal entities, including the City of Orlando and Department of Defense.

• The U.S. market is the initial focus due to regulatory momentum and ease of deployment, with a global opportunity estimated at $250 billion.

• Revenue is projected to reach $26 million in 2025, with expectations to become cash flow positive by 2027, following increased investment in engineering and manufacturing.

• Strategic partnerships, such as with Merrell Bros., have enabled technology development and scaling, while revenue-sharing models are being explored with TSDF facilities nationwide.

• The company is expanding its lab capacity to meet demand for testing and demonstration with large industrial clients.

Regulatory and industry context

• Regulatory drivers, including new EPA standards and increased litigation risk, are accelerating demand for effective PFAS destruction solutions.

• Federal and state agencies, as well as industrial sectors, are seeking alternatives to traditional waste management due to emerging PFAS regulations and public health concerns.

• The EPA is leading a coordinated federal response, setting enforceable PFAS standards, and deploying $10 billion in infrastructure funding for emerging contaminants, with a focus on drinking water and wastewater treatment.

• The agency is prioritizing polluter accountability, aiming to avoid shifting costs to utilities and consumers, and is supporting innovation and domestic manufacturing to meet regulatory needs.

• Interagency collaboration is ongoing to address PFAS across sectors, with continued research, regulatory action, and funding expected in the coming years.