Bion Environmental Technologies Inc.'s (BNET:OTCQB) patented process could help solve one of agriculture's most intractable problems, pollution from livestock. Its technology not only treats livestock waste, it also recovers renewable energy and clean water, as well as producing an organic fertilizer. Plus it has a plan to produce organic beef in large quantities.
A number of industry experts like what they see.
Chris Temple, editor and publisher of The National Investor, writes, "Bion Environmental Technologies, Inc. (whose initial recommendation of mine was carried after its release by Streetwise Reports) is an especially compelling story. Indeed, while I often take more time than most to deliberate on an idea prior to passing it on to my Members, BNET was different: particularly with some hands-on and related experiences of mine over the years in agriculture, I fairly quickly embraced its technology and story.
"Bion is truly a 'sexy' story in the environmental remediation and 'green' universe," he stated.
"If you are in the market for a small cleantech company with multi-billion-dollar potential, definitely look at Bion Environmental Technologies." - Matt Badiali
Independent financial analyst Matt Badiali said, "Bion is a $52.4 million cleantech company focused on turning manure into cash flows. The livestock waste industry is a huge addressable market for such a small company. And if it succeeds, it won't be small for long," adding, "The risk to reward ratio on this stock looks incredibly appealing. If you are in the market for a small cleantech company with multi-billion-dollar potential, definitely look at Bion Environmental Technologies."
Anthony G. Orphanos manages money for his private clients through Blacksmith Advisors and has had a distinguished career on Wall Street. He told Streetwise Reports, "I am interested in any disruptive technology that has unlimited upside potential. I have made large bets in Blackstone, Apple, Amazon and biotech companies because they will be able to grow faster over a longer period by virtue of their technology or market dominance. . .The only small cap is a cleantech company called Bion Environmental Technologies."
Technical analyst Clive Maund charted Bion's stock and wrote on June 8, "The moving averages are now more favorably aligned for a larger rally that could take it to new highs. . .We therefore stay long for a rally at least to the top of the trading range and it is rated a buy here for that."
What is behind this excitement about Bion? How does its technology work?
Chris Temple explained, "As you can learn at https://biontech.com/bion-technology-platform/, BNET has patented technology allowing it to not only remediate a lot of the groundwater and air pollution both from farming (the former, especially, similarly to what a typical municipal waste water treatment plant does) but to capture valuable and marketable products as a part of this process. Chief among these is an organic and non-volatile nitrogen fertilizer product—recovered in this waste clean-up process—that BNET can sell to all manner of agricultural operations.
"Its process could revolutionize agriculture and water quality. The big leap forward came when it figured out how to take animal waste and produce both biogas (green energy) and a pelletized nitrogen fertilizer (organic farming gold) from animal waste," Matt Badiali pointed out. "It blew me away. Bion's patented technology cleans the water and recovers resources from the waste. It can turn manure into a revenue stream at a low cost. The company touts its technology as a 'cleantech makeover' for large-scale livestock producers."
"The process blew me away. . . .I think it can do it. And if it does, it's going to be huge," Badiali stated.
Anthony Orphanos noted, "Water quality has become a major problem in the US and most of that pollution comes from animal waste," he said. "Bion's patented technology is designed to eliminate the environmental impacts of large scale livestock production and deliver a USDA certified sustainable product to the consumer. The platform recovers high value coproducts and renewable energy and can provide a pathway to branding in the premium sector of the $200 billion livestock industry."
Bion has applied for an Organic Materials Review Institute organic listing for its crystallized ammonium bicarbonate/ammonium carbonate and could receive it later this year or early next year.
Government assistance may also be on the horizon. "There is a bipartisan bill before Congress right now, the Agriculture Environmental Stewardship Act. In it is a provision for a 30% investment tax credit for nutrient recovery technologies and biogas recovery technologies. I'll be watching it closely because it could be a springboard for Bion's implementation plans," Badiali noted.
Bion has announced a plan to establish joint ventures to produce organic/sustainable beef. The high demand for organic beef is a factor in the high-profile controversy surrounding Belcampo Meats, where a former employee alleges that the store was passing off non-organic beef as organic.
In Bion's plan, its fertilizer would be used to grow organic corn on a large scale, that would then be fed to cattle, producing corn-fed beef. The company stated, "We believe such a product will meet consumer demand with respect to both sustainability and safety, but with the tenderness and taste American consumers have come to expect from premium American beef. A comparable product is largely unavailable in the market today. Organic meat generally sells at a substantial premium to non-organic; it is clear to Bion that sustainable (but not organic) beef will also command premium pricing."
Matt Badiali homed in on Bion's potential in this area. "…The key to a successful company in cleantech. Find a giant problem worth hundreds of billions of dollars and fix it in a way that generates profits. If that was all Bion could do, I'd still love the company…but there's more," he wrote.
"The company plans to go beyond just cleaning up other producers' waste. It plans to joint venture and support a brand of sustainable livestock—beef and pork. These animals can be raised sustainably, from birth to harvest," Badiali noted. The timing of this couldn't be better. New products like Beyond Meat (BYND:NASDAQ) offer plant-based proteins that challenge the livestock industry. Beyond Meat is an $8.4 billion company that sells plant "meat" for $6.25 per pound. In comparison, a pound of ground beef costs around $3.00 per pound. That means consumers will pay more than twice the price for a sustainable alternative to factory-farmed meat."
"The brand that Bion supports can create a huge market for consumers looking to eat sustainably. While Beyond Meat made a big sustainability splash when it came out, it still doesn't appeal to most folks. However, a sustainable beef hamburger would," Badiali noted.
"There is a need for sustainable beef right now. That's a huge opportunity for Bion's technology. And the rewards are enormous, if Bion can follow through on its model," he concluded.
Anthony Orphanos concurs. "The business model is being driven by the consumer who wants food that is not only healthy and safe but also produced in an environmentally friendly manner," he said. "The company plans to establish joint ventures to produce sustainable and organic meat and dairy products. The pelletized nitrogen crystals will support organic grain production that can be used as feed to produce organic corn fed beef that will command a substantial price advantage as there is nothing comparable in the market today."
"Improving water quality, environmentally friendly livestock production, the premium pricing commanded by branded products —the total addressable markets for Bion's technology is in the multi-billions, Orphanos said. "Bion is in the final phase of transitioning from R&D to an operating company with several revenue streams."
Bion currently has approximately 40.3 million shares outstanding, with another 47 million warrants and options. The vast majority of the options are held by employees who have chosen to take deferred compensation. Some 45–55% of the total shares are owned by management, employees, their extended families and charitable donees.[NLINSERT]
1) Patrice Fusillo conducted this interview for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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The National Investor: The Editor may have positions in some securities discussed. Subscribers are encouraged to investigate any situation or recommendation further before investing. The Editor receives no undisclosed kickbacks, fees, commissions, gratuities, honoraria or other emoluments from any companies, brokers or vendors discussed herein in exchange for his recommendation of them.
I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I, or members of my immediate household or family, are paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this interview: None.
I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Blackstone, Apple, Amazon, Roche Holdings, Guardant Health, Bion Environmental Technologies. I, or members of my immediate household or family, are paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this interview: None. Accounts managed by Blacksmith Advisors hold securities of the following companies mentioned in this article: Blackstone, Apple, Amazon, Roche Holdings, Guardant Health, Bion Environmental Technologies.
Clive Maund does not own shares of Bion Environmental Technologies, and neither he nor his company has a financial relationship with the company.