Approximately two billion metric tons of oil is shipped in oil tankers every year. Even with the latest technologies accidents are bound to happen. In U.S. waters alone1.3million gallons have been spilled from vessels and pipelines. The loss of this oil is both harmful to profits as well as the environment. Containing and reclaiming this already extracted oil can help both public opinion and minimize losses from lost product. The clean-up cost of the Deep Horizon spill alone totaledUS$14billion. Containment of spills such as these is part of the oil industry.Now that public and government eyes are watching oil companies, they must have in place oil spill procedures to protect both their image and minimize the cost of cleaning up and damages in which they are liable.
Oil spill liability has created a market for Clean Ocean Vessels (COV’s) that is supported by the insurance underwriters of marine oil operations and their stakeholders. Thus, Robix Alternative Fuels Inc. (CSE: RZX) has targeted its business to provide the technologies and services necessary to manage these types of spills. We recently spoke with Robix’s CEO Nathan Hansen, who explained how oil spill recovery works in Canadaand how their “COV becomes a harvester of waste oil products.” According to Mr. Hansen, associations and groups,primarily NGO’s,funded by oil companies are in charge of the clean ups. These response organizations are certified by Transport Canada and respond to a spill on behalf of the polluter. Robix has a patented COV technology for the containment and extraction of spilled oil in open waters, harbors, and near shorelines. Robix will provide these organizations and associations with the technologies they need to effectively manage spills. Some of the key features of Robix patented COV’s are that theyare able to operate remotely in rough and debris filled water, which is typical of oil spill scenarios. Robix’s COV design and ability of remote operation givesits product the advantage of being safer and quickly deployable, both of which are essential to effectively contain the disaster of an oil spill.
The Robix COV design also has an advantage over its competition, as its competitors’ designs cannot operate when waves exceed 18 inches, whereas the Robix COV’s can operate in oceans with waves as high as eight feet. Currently Robix is constructing two COV’s: a remotely operated 10ft Vessel, and a 40ft Vessel. Both of these COV’s will use its patented technology giving, them 90-97% recovery efficiency. This patented design is also scalable to 20ft and 80ft Vessels. Robix owns 100% of the patent with no royalties payable.
Recently Robix has analyzed the oil and gas market and found that tailing ponds have a demand for its 10ft vessel and have started production of their first unit to anticipated demand. This newly-identified market increases its potential buyers, by turning the otherwise toxic leftovers of oil sand production into more oil to sell, that otherwise would be lost revenue as it has already been extracted from the ground. This application would vary from an oil spill recovery where “in most cases we are able retrieve it, become the owners of the waste and use it as a revenue source for the company. When it is oil sands rather than waste from a spill, that waste product is part of their production and hence part of their revenue, and they would not allow us to keep it,” explained Mr. Hansen.
Robix has numerous potential clients in Canada, as Mr. Hansen explained the oil spill associations, which follow rule of law will be approached as they are in charge of the clean ups and “not the primary owners of pipelines, unless we can get an approval from the owners of the pipelines to take it on independently because of its (COV’s) game changing nature.” Robix is positioned to take advantage of the fact that new applications in Canada for pipelines and oil movement require preventative measures as part of regulation, and Robix’sCOV provides this. Mr. Hansen stated “In global applications we absolutely will be approaching major pipeline companies and major oil and gas companies, because every other country has its own regulation and protocol.” He further explained that “in some cases we (Robix) are even assisting some countries to develop more adequate equipment for protocol to develop more mechanical means for solutions.”
According to Robix’s January 2015 marketing presentation, its 40ft COV is set to prove its seaworthiness in Q1 of 2015. Robix is likely to hold a launch event to showcase the craft’s capabilities.One area that the COV maybe used is off British Columbia’s coast, especially if more oil is to be shipped through this area. This would make British Columbia a strong candidate for the launch event. With the launch of Robix Alternative Fuels’ COV, the company will be set to start receiving purchase orders this year. When we spoke withMr. Hansen we got a chance to confirm some of this. At the time of the interview he was currently on the west coast looking for a site for its showcase launch, which will be in March and he said that“the COV was undergoing its final touch-ups before it will be disassembled and sent to the west coast, and that the exact date for the showcase launch will be announced soon.”
Shares of Robix Alternative Fuels, meanwhile, have surged more than 28% so far in 2015 to its recent price of $0.54 a share. Robix currently has about 13.9 million shares outstanding.
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To learn more about Robix Alternative Fuels, you can view their research report and CEO video interview on their SmallCapPower.com Investor Hub: http://www.smallcappower.com/companies/products/robix-alternative-fuels-inc-cse-rzx
About Robix Alternative Fuels Inc.:
The Corporation is an “industrial products/technology” company, which has developed the Clean Ocean Vessel (“COV”), an oil spill recovery vessel design with the capability to recover oil not only in rough and debris laden sea conditions but more contained environments such as lakes and rivers. Robix has recognized a worldwide market opportunity for effective containment, recovery and disposal equipment, particularly in the oil spill protection industry. The business model is focused on Robix becoming a large-scale provider of services and/or equipment under licensing agreements with other industry participants, wherein Robix will use its COV patented design solution. For more information please visit www.robixfuels.com.
Disclosure
Ubika Research has received compensation fromRobix Alternative Fuels Inc. to provide analyst research coverage.
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