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Robix Alternative Fuels Inc. (CSE: RZX) President & CEO Nathan Hansen describes how his company’s technology has the potential to generate significant licensing revenue from the multi-billion dollar oil spill recovery market. He also explains why he thinks this patent is a game changer for Robix and outlines events that could continue to boost the company’s share price in 2014.
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Video transcript:
Interviewer: Robix Alternative Fuels is an industrial products and technology company that owns a clean ocean vessel, or a C.O.V. patent. This is an oil spill recovery vessel, designed with the capability to recover oil in rough sea conditions. In June 2014, we spoke to CEO Nathan Hansen, and asked him to tell our viewers more about Robix Alternative Fuels.
Nathan Hansen: My name is Nathan Hansen. I’m the CEO of a company called Robix Alternative Fuels. We trade on the CSE, under the stock symbol, RZX. We’re headquartered in Lethbridge, Alberta, and we’re an oil spill response and recovery product. It’s a design patent, and it’s capable of handling oil spill response in heavy, rough oceans, particularly.
Interviewer: Can you explain how the C.O.V., or Clean Ocean Vessel, works?
Nathan Hansen: The COV is a vessel that is scalable to different sizes, but I’ll describe the 40-foot unit, the middle size. It’s 40 feet long, 26 feet wide, 12 feet deep, and it’s a barge looking from the top in a catamaran vessel. So, the catamaran tanks are ballast. So, it floats stably in the ocean. And in between it is two contra-rotating drums. The principle of the technology is twofold. The first part is the oleophilic action takes place when metal and oil cling to each other. So, as you spin the drums, the drums collect the oil. The other effect is a scientific principle, a physical principle called a Bernoulli effect, which is a pumping action that causes the oil to draw between the two drums and to be scraped off, and once it’s taken off, it’s put into holding tanks and taken back for salvage.
Interviewer: So what is the size of the marine oil spill market?
Nathan Hansen: The market’s very large globally, into the billions. But our application, while no one wants a spill like the BP spill to reoccur, the market segment is into pipeline and pipeline-related events, and also the shipping market in general, which supplies in many cases . . . Those ships supply product to those oil platforms, and that market alone is a large enough market for us to have readiness in place. So, we have our equipment on standby, ready for any spill. And so those two market segments are large enough for us to really make a significant impact in generating revenue on a standby basis, and then on an emergency basis our revenue would obviously increase dramatically.
Interviewer: Thankfully, oil spills are few and far between. So, how does the company plan to generate regular revenue? And who would buy your product?
Nathan Hansen: Our market is a licensee/licensor relationship. So, while we don’t sell our product, we license it to users. And the user would pay a standby or a membership fee, in order to have us ready, have our technology ready within an association of other technology, such as containment of an oil spill. The industry is very well-developed in a containment. But as far as large capacity, high rates of recovery and efficiency is where our particular equipment shines.
Interviewer: In what way is your technology better than that of similar companies operating in your space? And why do you think it could be a game changer?
Nathan Hansen: The biggest difference between who we are and what exists in the marketplace today, first of all, is the common solution as a dispersant, sending the oil to the bottom of the ocean, dispersing it, burning it off, and many other applications. But recovering the oil, there’s only a few that are very efficient machinery to recover the oil, and that is where we shine. The biggest part of our advantage is our stability in rough ocean environments. Where other equipment would have to shut down on the basis of anything over an 18-inch wave, ours is good for up to eight-feet waves. It’s been tested so that it’s stable in rough ocean environments.
Interviewer: Do you have any partnership plans with other industry players?
Nathan Hansen: Our goals are to license with large industry players that have the need, the acute need in things like pipeline, at a port of a pipeline, and for example, the Northern Gateway, which is very high in the minds of the average Canadian. The ability for us to be ready at the port where the pipe goes to the ship, that transport of the oil from pipeline to ship is where we’re planning to be ready with industry association partnerships.
Interviewer: And finally, what investment catalyst to investors have to look forward to for the remainder of 2014?
Nathan Hansen: For the balance of the year, it’s about getting our COV in the water. So, a real live COV commercial is what we’re building now, and to put that in the water and be able to show an industry partner, to be able to market to the industry and have a COV ready in the water is our 2014 plans. So, we’re building one now.
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