A six ton dumpster full of sludge — specifically anaerobic digested biosolids from the Lafayette wastewater treatment plant — was turned into water and other minerals Monday.

Magic? Not quite.

A process known as supercritical water oxidation (SCWO) was on full display Monday at the headquarters of Merrell Bros. in rural Ervin Township as part of a demonstration of 374Water’s AirSWCO 6 product.

The demonstration is part of SCWO Week put on Monday through Wednesday by 374Water and Merrell Bros. On Monday, investors, media and board members were invited to see the company’s first commercial product.

“We’re witnessing history,” Marc Deshusses, co-founder and head of technology for 374Water, said. “It’s a little bit cliche, but what is really amazing is to see that it’s real, and we have a product that is ready to change the world.”

The company’s AirSWCO 6 units measure 40 feet long, 8 feet wide and 8 feet tall and use SCWO, a process that uses extremely high temperature and pressure to transform organic waste, such as sludge, the byproduct of wastewater treatment, into water and minerals.

The system also eliminates PFAS, chemicals that are potentially harmful to humans and are found in certain parts of the country and products, including nonstick products, stain and water repellents, paint and cleaning products. 374Water says its units can also process microplastics, food waste, landfill leachate, animal waste and more.

Currently, much of the sludge produced today ends up in landfills or is incinerated. Both options have some environmental concerns and in both cases the potential benefits of the organic matter is lost.

The emerging technology and potential benefit it can have for the disposal of waste and benefit to the environment caught the eye of the Merrell Bros., which has built an empire on managing and recycling biosolids.

The Kokomo-based company bought a significant stake in 374Water in 2021 and reached an agreement with 374Water to have their AirSCWO units built at the Merrill Bros. headquarters. The partnership also gives 374Water direct access to many of Merrill Bros. clients.

The first customers for the AirSWCO 6 will be Orange County Sanitation District for use and is expected to ship out to California later this year.

“We are obviously very excited about this technology, but having an open house and bringing our customers, future customers, into the setting and see with their eyes, it clears all the doubt from people saying it’s too good to be true,” Kobe Nagar, CEO of 374Water, told the Tribune. “If you think it’s too good to be true, come and see it in action.”

The company’s challenge now is to secure more customers for its AirSWCO units and scaling up production to meet the demand it expects to see.

“The biggest challenge is how do we increase capacity?” Nagar said. “We’ll see a huge demand coming from the market, and we want to be able to supply that in both selling units and also providing waste management services. It’s all about how to go from making two units to 60 units.”

According to financial filings, 374Water reported a net loss of $4.7 million in 2022, with its largest expenses going toward general and administrative costs ($1.6 million) and research and development ($1.1 million). Total revenue was just north of $3 million.

In its annual report filed with the SEC earlier this month, the company says they see municipal customers as its main market that it can sell its AirSCWO units to and that the majority of the company’s revenue is expected to come from sales of its AirSCWO units.

The company’s annual report is also clear that it is an “emerging growth” company and that it faces all the risks that come with that designation.

“Further, we are subject to all the risks inherent in a new business including, but not limited to: intense competition; lack of sufficient capital; loss of protection of proprietary technology and trade secrets; difficulties in commercializing our products, managing growth and hiring and retaining key employees; adverse changes in costs and general business and economic conditions; and the need to achieve product acceptance, to enter and develop new markets and to develop and maintain successful relationships with customers, third party suppliers and contractors,” the report states.

The other major challenge is dealing with the high use of energy SCWO uses and making its method a more cost effective way to dispose of sludge and other materials. The company believes it can improve that and make its AirSCWO units self-sufficient with larger units that will benefit from the economies of scale.

Such larger units, named AirSCWO 30 and AIRSCWO 200, named for the amount of wet ton it can process on a daily basis, will help with the energy challenges, the company says, and are expected to be developed in the coming years.

Tyler Juranovich can be reached at 765-454-8577, by email at tyler.juranovich@kokomotribune.com or on Twitter at @tylerjuranovich.

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