374Water (SCWO) H.C. Wainwright 26th Annual Global Investment Conference 2024 summary

Technology overview

• AirSCWO system uses supercritical water oxidation to destroy hazardous and non-hazardous organic waste, including PFAS, pharmaceuticals, pesticides, and microplastics.

• The process operates at high temperature and pressure, breaking down waste to core elements and generating heat energy that can be recycled or converted to electricity.

• Minimal emissions are produced, with CO2 output being very low and most organic contaminants fully destroyed.

• The system is scalable, with models ranging from hypermobile 1-ton units to bespoke 100-ton units for large-scale applications.

• Add-on steps can further treat effluent water to potable standards and utilize benign mineral byproducts as fertilizer.

Market opportunity and business model

• The global market for waste destruction is estimated at $250 billion, with a U.S. focus in the hundreds of billions.

• Current contracts and pilots include the City of Orlando and Orange County, with federal opportunities totaling a $900 million pipeline, especially with the military.

• The business model includes capital sales, recurring service contracts, and revenue-sharing with treatment, storage, and disposal facilities.

• Municipalities prefer to own the technology, while federal and industrial clients may opt for service or lease models.

• Advanced negotiations are ongoing with major industry players for destruction-as-a-service deployments.

Industry context and regulatory drivers

• Traditional waste solutions like landfilling, incineration, and anaerobic digestion do not fully destroy PFAS and other contaminants.

• Regulatory tailwinds from EPA drinking water standards and CERCLA Superfund rules are increasing demand for effective destruction technologies.

• Land application and landfill disposal of biosolids are being restricted due to contamination, creating a pinch point for waste processors.

• The technology is positioned as a unique solution with limited competition at scale, especially for municipal and federal clients.

• The company is raising additional capital to scale operations and meet growing demand.