PNDHF: Pipeline Expanding; Positive Implications for Technology Applications & Growth

By M. Marin

OTCQB:PNDHF | TSX.V:POND

READ THE FULL PNDHF RESEARCH REPORT

Pond Technologies PNDHF (TSX.V:POND) is a carbon conversion technology company that uses its proprietary platform to grow microalgae in a rapid and cost-effective manner that does not require arable land. We expect Pond to benefit from growing awareness of its technology as concerns about environmental and ESG (Environmental, social, and corporate governance) issues increase.

Project with global player offers proof of concept…

The company has formed agreements that offer proof of concept and revenue opportunities, including with Livalta (AB Agri, part of Associated British Foods). Pond's Livalta (AB Agri) project is progressing. The company has completed the initial engineering work on the project and has recently received milestone payments. The pilot Livalta (AB Agri) plant is expected to begin operating in 4Q22. Pond and Livalta formed a license agreement for Pond to earn technology access fees and an ongoing royalty based on the production from commercial algae plants deployed going forward. As work progresses, the company expects further payments.

… as new opportunities come on stream

At the same time, Pond continues to form new agreements to further validate and commercialize its technology. Last month, Pond formed a memorandum of understanding with SEM Energy Ltd., a sustainable technology solutions company that implements customized solutions for the treatment of waste products and wastewater, recovery of nutrients and to generate value-added by-products. Pond expects SEM to utilize Pond technology as a bolt-on solution in certain of its projects.

The two companies will collaborate on a non-exclusive basis to pursue projects internationally, beginning with an initial focus on projects based in Scotland. Their goal is to abate 10,000 tonnes of CO₂ from an identified waste to energy plant using stack gas. The project is expected to launch in 4Q22. SEM intends to promote and recommend Pond to its existing ESG clients on a non-exclusive basis via a carbon capture campaign.

The company expects that leveraging SEM's current global project pipeline can help Pond commercialize its carbon reducing algae-based platform across multiple sectors. The global collaboration is also expected to provide Pond the added infrastructure to support the scaling up process through its ongoing commercialization efforts. The company believes this agreement can accelerate its commercialization efforts.

Separately, the company also recently engaged Clean Conduit, a clean technology management consulting firm that has more than 15 years of experience in domestic and international cleantech consulting. Clean Conduit will market Pond's technology solutions to prospective clients. The company expects the Clean Conduit relationship will be largely subsidized through GreenCentre Canada.

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