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 around 600°C and 221 bar, breaking down waste to core elements in seconds.

• Outputs include water, benign minerals, minimal CO₂, and significant recoverable heat energy, which can be recycled or converted to electricity.

• Four system models are available, ranging from hypermobile to large bespoke units, with scalability and customization for different customer needs.

• The technology is positioned as superior to incumbent solutions like landfilling, incineration, anaerobic digestion, and deep well injection, which do not fully destroy PFAS.

Market opportunity and business model

• The global market opportunity is estimated at $250 billion, with a current focus on the U.S. municipal, federal, and industrial sectors.

• Municipal contracts include the City of Orlando and Orange County, with capital earmarked for technology purchases and plans to scale to larger units.

• Federal pipeline includes $900 million in opportunities, especially with military bases seeking solutions for PFAS and firefighting foam disposal.

• Industrial market entry is underway, targeting sectors like oil and gas, pharmaceuticals, and food and beverage.

• Revenue models vary: municipalities prefer capital purchases, federal contracts lean toward recurring service, and industrial clients may choose between ownership, leasing, or service agreements.

Strategic partnerships and growth plans

• Early partnership with Merrell Brothers, a major waste management firm, supported technology development and market entry.

• Advanced negotiations are ongoing with major treatment, storage, and disposal facilities for a destruction-as-a-service model with revenue sharing.

• Near-term catalysts include deepening municipal relationships, scaling demonstrations, and raising additional capital to support growth.

• Regulatory tailwinds from EPA and CERCLA are expected to increase demand for effective waste destruction solutions.

• The company is actively expanding its leadership team and preparing for broader commercialization.