Chris Gannon is a provider of innovative waste treatment solutions to the global environmental and sustainability industries. Its products and services include advanced waste-to-energy technologies, high-temperature thermal treatment systems, resource recovery solutions, waste management systems, environmental impact reduction services, and sustainability-focused infrastructure development. Welcome.
Great. Thanks so much. Glad to be here. Yeah, Chris Gannon and Russell Kline here. I don't know how many people here are familiar with our company, but 374Water is focused on basically waste destruction, specifically organic waste destruction. If you can go to the next slide, please.
Oh, do I have a—
I'm sorry. I guess I'll do it. All right, there we go. Perfect. Yeah, we're a waste destruction company, essentially. What we have is a proprietary technology called AirSCWO. I'll go into what that exactly does shortly. Essentially, what our technology is focused on is taking that organic waste into our technology that can be a solid, a liquid, or a slurry, and then we destroy it.
What comes out the back end of our system is clean water, some mineral effluent, some vent gas, and very importantly, a tremendous amount of energy, which we can recycle. Again, we'll go through a diagram of that and talk about that in more detail. Our focus is to disrupt the roughly $450 billion waste management and recycling markets internationally. We currently are focused primarily, though, on the U.S. or North American market specifically. In terms of the technology itself, our AirSCWO system is modular and scalable. We'll go into the different types of technology or different sizes that we have shortly. We also have a very flexible go-to-market strategy as well.
We not only look at selling our technology through a capital sale or a lease model, but we also provide waste destruction services as well, which we'll go into a little bit later as well. In terms of our business in general, we have a very large backlog and pipeline that we are beginning to convert into revenue this year. We believe we have a very nice path to roughly $250 million to $500 million in revenue over the near term. In terms of our technology, essentially what we're doing is we're taking either traditional waste streams, which include biosolids, landfill leachate, whole hosts of military waste, industrial waste. We combine that with what's called supercritical water and oxygen, and in a process, we then—in our technology—we destroy that waste.
In the middle of a pre-treatment process that we have to prepare that waste to go into our system, we get it set up to go into our AirSCWO. We combine within the AirSCWO system within what we call our reactor, which is a tubular reactor, continuous flow process. We combine that waste stream with what's called supercritical water and then oxygen as an oxidizing agent. Within a matter of seconds, that organic waste material is destroyed. Our technology is also very effective at destroying emerging contaminants. I'm sure you've read a lot about the PFAS issue that North America and, frankly, all other countries in areas of the world are facing. Our technology is incredibly effective at destroying that, both long and short-chain PFAS.
We can also deal with plastics, but it sounds like we have somebody else who has an interesting, novel approach to doing that at scale. In any event, once the waste goes into our technology, again, it is destroyed very, very rapidly. Our system is tunable. What that means is that we can tune the amount of destruction that we want for that waste stream. Depending on the customer requirements, whether they want complete destruction or only partial destruction, again, we can tune the system, manage that waste stream to accomplish that. What comes out the other end of our system is safe, dischargeable water, again, some mineral effluent. This is benign. No bad stuff is in there anymore, as well as some safe vent gas that can be sequestered. This immense amount of heat energy, which we're actually utilizing, helps power our system.
Because our technology is utilizing very high energy or heat energy within our technology, that's a massive advantage to our system. In terms of just some graphically, some views of some of the materials that we have destroyed over time, we got our start in sludge or biosolids. There are 16,000 wastewater treatment facilities across the country. We take the sludge that they are producing on a daily basis, and then we destroy it within our technology. We've also been very successful at destroying landfill leachate. Pretty darn nasty stuff, and it goes through our system very, very effectively. I'm sure you've all heard of granular activated carbon, which is really just charcoal. We're also able to destroy that, ion-exchange resin, and so forth. There's also a lot of highly contaminated soils all over the world.
Once that soil is washed, essentially, and the contaminated substance is consolidated, we can take that through our technology and, again, destroy it as well. In terms of the market, we are focused on three main industry verticals: the municipal market, the federal, which by and large is focusing on the military branches right now, and then the industrial market, which, of course, is a lot of subverticals as well. Each one of those verticals has different issues, but all of them are looking for a solution to their waste problems. Many of them are storing it. They're land-applying it. They're throwing it into landfills. We had a lot of people here talking about landfills recently or earlier today. We can take, again, the waste that would be going into those landfills that's organic and destroy it.
On the municipal side, many of the wastewater treatment facilities are transporting the waste that they're generating, that sludge, very, very long distances to be either land-applied to agricultural land, federal lands, and so forth, or they also are throwing it into landfills, which is contributing to the very landfill leachate that some speakers here today talked about. At the federal government level, they're very focused on destruction services. They have an incredible amount of waste at all of their facilities around the country, and they're looking for viable solutions to, again, that destruction there. That's where we come in, and then industrial, similar. Underlying all of those three main industry verticals are treatment, storage, and disposal facilities, RCRA permitted treatment, storage, and disposal facilities that are able to take in hazardous and non-hazardous waste and then address that waste stream.
We are in discussions with a whole host of those players in terms of bringing our technology to their facilities and then helping destroy various waste materials there. In terms of our AirSCWO systems, as you can see there, we have essentially four main sizes. We have an AS1, AirSCWO 1, which is a highly mobile system that can treat up to about one ton of waste a day. We have an AirSCWO 6. These are very complex nomenclature here, numbers. AS6 is about a six-ton-per-day system. That's also a mobile system. This is the technology that we have installed down at the City of Orlando today. We also have an AirSCWO 30 system, which we plan to—we hope to begin manufacturing this year. That system treats or destroys up to about 30 tons of waste on a daily basis.
That system, if you look at the cross-section of opportunities that we see in front of us, is very, very popular and is largely sought not only by the municipal sector, but also the federal government side as well. Our 100-ton-plus systems, those you can envision are just purely buildings that have multiple of our AS30s or AS50s installed in those facilities. Those are bespoke. We'll be building those based on specific customer demand, specific waste streams that they're looking to destroy. In terms of the waste destruction landscape, we've had a number of people here already talking about that. Incineration has been a long-used method to treating various waste streams and to destroy it. The problem with all of the existing processes to handle waste out there is there's always bad byproducts or some negative externalities.
With our technology, again, we are focused on complete destruction of that waste stream. There is nothing on the tail on that side. When we think about digestion, incineration, again, there are negative byproducts. Land application naturally completes to contaminated groundwater, contaminated food, contaminated livestock, and so forth. I invite you to read up on that. It is pretty scary stuff. Again, we are able to, when you think about the particularly municipal side, the industrial or the wastewater treatment facilities, they are taking that sludge and, again, land-applying it into areas that we probably would prefer not. We can stop that process right at the source, right at those facilities, and destroy, again, the millions of gallons that are being generated on a daily basis. Deep well injection is also another process where certain waste are deep well injected.
They're treated for a period of time to a certain level, and then deep well injected, there are natural issues there. Of course, naturally, there's a whole lot of storage going on of waste, particularly at the federal government level, where it is just sitting there and leading to additional contamination and other issues at facilities around the country. In terms of our footprint, our current footprint is made up of really the eastern part of the U.S. We originated out of Duke University, and that's where our technology was initially invented. We were a spinout from there, and then we continued to develop the technology over many years.
We have a lab in that area in North Carolina where we do a tremendous amount of demonstration work, treatability studies for new customers who are getting acquainted with our technology and the effectiveness of supercritical water oxidation to, again, destroy their waste streams. We now also have our operations, both our AirSCWO system, pre and post-treatment systems down in Orlando, specifically at the City of Orlando's Iron Bridge Water Reclamation Facility. We also are doing manufacturing there now as well. We have a second facility on site there that we are assembling our systems. We have a number of deployments that are coming up this year that we have talked about, including going out to a deployment here shortly to the Orange County Sanitation out in California, in Southern California.
We have a deployment to the Colorado School of Mines and the Peterson Space Force Base in Colorado. We have a big head-to-head work that we're going to be doing in Detroit here very shortly with the federal government. What's interesting or noteworthy there is that everything that we are focused on destroying there on site, which includes GAC, IX, AFFF, firefighting foam, and so forth, we've already done at scale and done it better than anyone else with comparable or similar types of waste destruction technology. In terms of our go-to-market strategy, it's very focused on, again, initial treatability studies with our customers. We go to full-scale, commercial-scale waste destruction demonstrations, and then we get to the deployment of our technology. Once again, we have three procurement modes: capital sale, a lease, and then our waste destruction services.
We are ramping up the waste destruction services this year. In terms of our business model and potential, this is really the first year that we anticipate material revenue with our company. That, again, relates to not only near-term deployments of our technology and capital sales, but also the beginning of our waste destruction services. We have, I believe, a very clear path to very meaningful revenue over the near term. Our focus within our markets is really we've started our business out focused on the municipal sector. We are aggressively now going after the federal market and making significant deployments there. Underlying our strategy is also the RCRA permitted TSDF facilities. We need to have those facilities to do large-scale destruction for the federal government. The industrial market is kind of the up-and-coming area that we're starting to focus on.
Ultimately, we intend to go international, but right now we are focused here in the United States. In terms of the AirSCWO systems, you can see there at the bottom the various ranges of revenue related to a capital sale of our system that does not include our pre and post-treatment systems. With the service model, if you look at the AirSCWO 30 there, which is really the preferred model for our AirSCWO waste destruction services, you are really looking at, once it gets up and running, $4 million-$6 million a quarter in revenue potential on a system. I will leave you with, again, a few highlights here. We are very focused as an organization to address the waste destruction disposal issues that we see not only here in the United States, Canada, but everywhere else across the world.
We believe we have the only viable commercial-scale technology on the market at this point that is continuous flow. In addition, the size of the market is truly vast. There is plenty of opportunity for us and, frankly, others as we all open up those markets. I do think that the regulatory environment remains in our favor. Yes, there was a change in administration, but importantly, the EPA just recently at one of their quarterly meetings with state-level EPA continued to articulate their commitment to dealing with PFAS specifically. We feel good about that. Once again, our AirSCWO system is not only scalable, but customizable depending on the needs of the end customer. Also, our flexible go-to-market strategy, once again, is a sale, capital sale, a lease, as well as waste destruction services.
We are beginning our revenue generation here this year and see a very clear path to substantial growth over the next several years.
Thank you, Chris. That was a great overview and very informative. I guess maybe just to begin, we could just talk more about the PFAS solution that you provide and the opportunity there. Clearly, it's large, and you guys have a technology that addresses it immediately. Maybe you could just add some more detail there.
Yes. Can you hear me?
Yeah.
Okay. Great. When you think about PFAS, there are two types. I mean, now there's thousands of different PFAS, but there's essentially two main types. There's a long-chain PFAS or type of PFAS, and there's short-chain PFAS. Long-chain tends to convert to short-chain, and most of the short-chain is very, very difficult for any technologies to destroy. What's been proven is that supercritical water oxidation, which is what we're harnessing, the power of that is very, very effective at completely destroying that PFAS. We can do it within, again, a matter of seconds. It is a very important aspect of what we're doing, but it's not the only aspect of where we're focused.
Definitely. I think it's very helpful. Just want to briefly turn to the audience in case we get a mic.
Sorry. Thanks for coming. It looks like you've got $10 million, $11 million of cash on the balance sheet. What's your burn rate? When do you think you'll turn free cash flow positive and how much capital you need to get to that $250 million kind of revenue level?
Thank you for that question. We currently project that with our current cash, along with our expected business and some of the commercialization and projects coming to fulfillment in 2025, is that we will be good for 2025. We are expecting that we'll need additional capital going forward, and we're currently working and looking at opportunities with a combination of strategic partnerships as well as the expectation of debt or project financing as we roll out additional capital sales. As we look forward, we are projecting we don't have a specific date right now because part of that will depend on that blend with where we end up with the strategic partnerships and the pace of the rollout, but we would expect to be free cash flow in a couple of years.
During that time period, again, we want to look at what our best options are to bring in the capital that we need to continue to expand and grow the business. Any further questions from the audience?
Okay. I have plenty more here. Just maybe you could maybe speak more to the regulatory environment. You touched on it earlier. Just maybe go into more detail on how that's an opportunity for what you guys are doing.
Yeah. In terms of the regulatory environment, it's kind of a bit of a nobody knows right now. I mean, there's a lot of noise out there and a lot of swirl. All I can say is that our technology is focused on very key needs, regardless of this PFAS issue, key needs of these various markets. If you think again about the municipal market and the industrial wastewater segment, they, again, are transporting waste very long distances to ultimately get rid of it. There's a big supply chain involved in that when we can just destroy it at the source, and we can do that competitively. If you think about GAC and IX, which is used across both water and wastewater treatment as well, that ultimately gets spent, meaning used up, and they need to replace it. Well, where are you going to send it?
Often it's sent to landfills. Many landfills don't want to accept those types of waste because they are contributing to their very specific landfill leachate issues. Anyway, I think we have a solution there that makes a lot of sense. We also have a solution for landfill leachate as well. When you get to the PFAS topic, though, I'll go back to just what was said by the EPA administrator just recently. This is literally last week that that remains a top priority for them. At that meeting, he went deep into discussing what was not a priority for them. He specifically mentioned that PFAS remained a priority. That's encouraging. I don't know what that ultimately means, and that'll shake out over time.
Definitely. It sounds like it could be a very large opportunity. Just, I guess, shifting gears, maybe we could talk more about just partnerships, collaborations, joint ventures that could be on the horizon that would help you guys scale. Maybe you could talk more to that.
Yeah, absolutely. We break that down into a couple of segments. We are very focused right now at building our waste destruction services business. What does that mean? We need to have facilities that have the right permits, whether they're hazardous waste permits, the RCRA permitted TSDF facilities, or other facilities with adequate permits to destroy the specific waste in question. We are in advanced discussions with numerous players there to establish a national footprint of waste destruction facilities, and we're doing it through a revenue share model where they would benefit. Our ability to go on site at their facilities and to begin waste destruction services would also include our sourcing of opportunities, a lot of federal government opportunities as an example.
Of course, certain wastes that they're already bringing on site that our method of destruction would be their preferred method. That is one of the methods we are focused on executing here this year, and we expect to make announcements accordingly there.
Excellent. Just want to squeeze one last question in here. Maybe just talking about the five-year plan, what's your vision moving forward over the next five years?
It is to get scale and to get scale quickly. The team and I have a target of $500 million in revenue within the next five years. That is a lofty, I guess, goal kind of coming from where we are today. Our backlog and pipeline today stands at roughly $1.8 billion. That does not even include our industrial segment. We are just getting started. I am feeling very good about that. That is also a North American-focused backlog and pipeline. Those are lofty numbers, and one could roll their eyes, but they are also very actionable. For us, collectively, I feel pretty good about that. The key for us is to scale to our 30-ton systems here this year or early next to really start to go after those and unlock all those opportunities.
Definitely. Thank you. That was a great overview, and we're really excited about the things you guys are doing, and we'd be excited to have you guys back next year. Thank you.
Thank you very much.
Thank you.