Production agriculture, environmental necessities and raw economics are coming together like never before. Companies on the cutting edge of these efforts, like Bion, can change the entire way that farming and natural resource management have been done throughout our history.
Former U.S. Secretary of Agriculture
Multiple Drivers for Success
Bion Environmental Technologies (OTC QB: BNET) has developed cost-effective livestock waste treatment technology that can deliver:
- Significantly improved economics in the $180 billion per year animal-protein production industry – dairy, meat and egg production
- Dramatically lower-cost solutions in the clean water sector, also over $100 billion in annual U.S. spending, as well as high-impact solutions to several other pressing environmental and public health issues
Cleantech Solution for Livestock Production
Bion’s technology provides a ‘cleantech makeover’ for large-scale livestock production: environmental impacts are dramatically reduced; resource and operational efficiencies are dramatically improved.
Bion’s verifiable technology platform creates new revenue sources through the generation of financial products including renewable energy/carbon credits, as well as nutrient credits described below. Bion recovers high-value byproducts from assets in the waste stream that have traditionally been wasted or underutilized, including a unique ‘pure’ nitrogen product that we believe will be certified for use in organic production. Water can be cleaned sufficiently for re-use by the herd, irrigation or aquifer recharge. Current manure handling expenses can be eliminated. Because land is no longer required to spread waste on, expansion on existing acreage or divesting acreage can be considered.
The livestock industry has struggled for the last decade to deal with rising fuel costs and drought conditions that have exposed critical logistical weaknesses in its supply chain. An unintended consequence of siting large-scale facilities in ‘out of the way’ locations has been a significant increase in the environmental impacts and costs of transportation. For the most part, the industry has been unable to relocate or consolidate to mitigate these effects because of its environmental impacts. Margins across the supply chain have suffered. Bion’s technology platform enables clean state-of-the-art livestock facilities to be developed in new strategic locations that improve logistical impacts and efficiencies.
Of even greater significance, America’s and the world’s buying habits are undergoing a fundamental shift. Food safety, corporate social responsibility and improved sustainability in production practices are increasingly demanded by the consumer. Whole Foods, Walmart, Costco, McDonalds, and most other large meat and dairy product retailers have recently announced sustainability initiatives. Bion’s technology platform can provide measurable and verifiable sustainability metrics – carbon and nutrient footprint; impacts to water, soil and air; pathogen destruction – that are unmatched in the industry today.
U.S. clean water costs – $114 billion in 2010 – are escalating while overall water quality continues to decline. Excess nutrients – nitrogen and phosphorus – cause toxic algal blooms and dead zones that the EPA now calls one of the greatest water quality problems in the U.S. today. Livestock production is recognized as one of the largest sources of excess nutrients in most major watersheds; Bion’s direct treatment of livestock waste can provide large-scale verifiable nutrient reductions at significantly lower cost than current agricultural and downstream treatment strategies. Bion’s platform also provides dramatic reductions of greenhouse gas, ammonia and hydrogen sulfide emissions, as well as pathogens in the waste stream that have been linked to food-borne illness and antibiotic resistance.
The re-allocation of significantly more funding to non-point source pollution sources, particularly agriculture, is inevitable if we are to maintain the integrity of the environment and our water resources. Policies are now changing to support market-based strategies that engage the private sector to provide lower cost solutions. National livestock interests, including National Milk Producers Federation, Land O’Lakes, JBS (the largest beef/pork producer in the world) and others have recently joined Bion in support of such a strategy.
While not unopposed, Bion is strongly confident that these policy reforms will be achieved in Pennsylvania in the near future, as they face significant sanctions in 2017 and EPA has signaled its intention to impose them. Bion is equally confident that the policies being developed in the Chesapeake Bay will serve as a model for similar livestock-related runoff issues in other watersheds, such as the Mississippi River Basin and Great Lakes.
Bion’s proven solution, coupled with experienced and dedicated management that have a deep understanding of the issues, positions the company to succeed as this opportunity, which is poised to receive billions in federal, state, local and private funding, continues to unfold. To learn more about this evolving opportunity, please visit Excess Nutrients – the Challenge, Bion’s Technology, Benefits, and Policy Change.
Clean water policy change has come slowly. But our country’s approach to clean water is now evolving to address cost-effective alternatives to an outdated strategy that fails to adequately address the largest sources of pollution in most watersheds. While today, Pennsylvania is in the spotlight, many states will face similar problems and decisions over the coming years.
Legislation to establish a competitive bidding program in Pennsylvania to purchase low-cost nutrient reductions from Bion and other private-sector providers was introduced in the PA Senate in October 2016; it is sponsored by Republican leadership. Legislation to apply the federal energy tax credit to nutrient recovery was recently introduced in the U.S. House and Senate and enjoys bipartisan support. Bion believes that a Republican mandate that is focused on reducing the scale and cost of government will embrace market-driven solutions such as Bion provides. Many in the livestock industry are at the table, ready and willing to be engaged.
Further, recent improvements to Bion’s technology platform enable the recovery of much higher-value byproducts and renewable energy. Pilot studies indicate that under certain conditions more fully described in the current Company Overview and SEC filings, projects can be developed that can be supported by byproduct and renewable energy production alone. While the policy changes we support are still a major focus of our business, we are no longer entirely dependent on them. This is a true game-changer for Bion.
The U.S. livestock industry must reduce its footprint and simultaneously improve its efficiencies if it is to remain environmentally and economically sustainable in the modern world. Further, the industry has now recognized that it will need to verify and communicate this improved sustainability to the consumer. Bion’s technology addresses both of these inescapable challenges that will require significant investment over the coming years. And Bion’s expertise, coupled with its technology solutions that have been proven over many years, place it far ahead of future competitors in this evolving space.
Many of us here in Pennsylvania have taken our role as protectors of our land, our environment and the Chesapeake Bay very seriously and that’s why our partnership with Bion made sense from day one.
CEO and president, Kreider Farms