Neohydro Technologies Corp. (OTCBB:NHYT)

Dear Reader,

Water is the new oil. Well that's how we see it at StockUpTicks. As the world comes to terms with global warming, the earth is losing its fresh water supplies to drought and evaporation. A warmer climate, creeping towards the poles, is causing sunnier climates and fresh water is losing the battle.

And it is widespread. If you look at the levels of lakes, like Lake Mead in Nevada or the drought conditions causing a legal war between the states of Georgia and Alabama or vegetation turning to dirt in Africa or the Chinese trying to dam up every river in hopes of fresh water conservation and control, it's no wonder that treating water supplies will become the new 'drilling' industry of the future.

Water treatment plants are reusing sewage and waste water through long and complicated water cleansing facilities and pulling out the salts of the oceans is still immensely costly and is decades away from any sort of practical applications.

That's why we like today's featured company, Neohydro Technologies Corp. (OTCBB: NHYT). They have recently acquired the necessary licenses to a new process that can clean water not only in large facilities, but through a mobile delivery system. Exciting! We think you might be intigued by what you find in Neohydro...
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About Neohydro Technologies Corp.

At the heart of the electrolytic process is the Brinecell™ anode, which combines three diverse metals (platinum, titanium, and niobium) to create a completely new type of electrode. According to NHYT management, this proprietary electrode is the only one capable of handling the electrical current necessary to create its powerful mixed oxidant solution on-site. Brinecell requires only water, basic salt, and electricity as consumables for water treatment and leaves no chemical residuals. 

Neohydro is a start up company that acquired its water-changing technology two months ago and on September 22, 2008, Dean Themy, one of the founders of Brinecell™ and Neohydro™ technologies, became NHYT`s President and CEO. Mr. Themy brings over 30 years of experience in the electrolytic industry to the Company. His extensive industry knowledge led him to form Oxidant3 Corporation, where he served as President from 2003 to 2007. Re-locating to Houston, Texas where Neohydro is now headquartered, Mr. Themy formed Neohydro LLC, which manufactures the core element of the electrolytic process. 

Neohydro is in essence, a service company for providing various water supply solutions to industrial clients globally that have industrial waste water management concerns. Neohydro Technologies controls Neohydro Corp's patent and intellectual rights for the purpose of the exclusive worldwide marketing, distribution and licensing rights of the Business for the treatment of industrial waste water for industries. 
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The Neohydro Market

In the United States alone, over 19 trillion gallons of water are used solely for industrial purposes. Typically these needs are met by transporting water from a nearby natural source and usually need to be treated for natural bacteria and other contaminates before they can be effectively used. Once used, the resulting waste water must then again be subjected to special testing and treatments to meet strict government regulations.

The U.S. Department of the Interior predicts water supply crises as “Highly Likely” by 2025 in the following locations: 

• North San Joaquin Valley of Central California
• Santa Fe and Albuquerque
• Salt Lake City
• Denver and Colorado Springs
• Arizona/California state border
• Eastern Arizona region
• Texas Gulf Coast and the Texas/Mexico border

Traditional Methods of Treating Industrial Wastewater:

• Distillation (generates heat and high energy consumption)
• Reverse Osmosis (loses 40% total water supply)
• Bioremediation Sludge (creates concentrated waste disposal)
• Filtration (very slow process)

On the surface, these applications seem unrelated, but due to unique properties of the technology, it is able to change the nature of the water itself. "Dirty" water, collected during oil and gas drilling, becomes usable for many industrial and agricultural applications, including irrigation. "Clean" water, becomes a sterilant capable of killing the most harmful of pathogens.

Neohydro's proprietary technology uses only DC current and the waste water itself to naturally oxidize and kill all bacteria, virus, fungi, mold, BOD's and COD's. Perchlorates, arsenic, most metals, and all gases are neutralized during the sterilization process.

A wide range of technology applications 

The Company’s technology can be used in chemical engineering, metallurgy, healthcare, agriculture, food service and oil industry applications. Every oil well in the world uses water which must then be disinfected and detoxified. Through the use of electro-oxidation, oil companies will be able to reuse this wastewater and eliminate transportation and treatment costs. NHYT’s technology has the potential to reduce oil industry water costs by as much as 75%.

World water crisis drives demand for treatment technology 

Nearly 97% of the earth’s water is salt water. Of the 3% that represents fresh water, over two-thirds of fresh water is frozen in glaciers and polar ice caps, leaving only 0.9% available for human consumption. Changes in the global climate associated with global warming are affecting water resources worldwide. The combination of lower precipitation and higher evaporation in many regions of the world is diminishing water supplies in rivers, lakes and underground reservoirs.

According to the International Water Resources Association, one-third of the developing world will face severe water shortages in the 21st century. By 2025, water shortages will be commonplace in poorer nations where resources are limited and populations are growing. In 2000, the United Nations World Commission on Water estimated an additional $100 billion dollars a year in spending would be needed to alleviate water scarcity worldwide.
 

Rising demand for wastewater treatment equipment 

The population of the U.S. is estimated to reach 420 million by mid-2050, which will put enormous strain on existing water resources and strengthen demand for water recycling and reuse systems. There are more than 50,000 community water systems and more than 16,000 wastewater systems in the U.S.  The equipment that was installed following the Clean Water Act in 1972 is reaching the end of its lifecycle and there is an urgent need to upgrade and retrofit the existing wastewater treatment infrastructure. Market opportunities exist for manufacturers who can provide energy-efficient, reduced-footprint equipment upgrades that not only replace non-functional or older equipment, but bring the end-user into compliance with stricter wastewater treatment regulations. 

The U.S. EPA estimates $202.5 billion in spending will be needed to control wastewater pollution for up to a 20-year period. This amount includes $134.4 billion for wastewater treatment and collection systems, $54.8 billion for combined sewer overflow corrections, and $9.0 billion for storm-water management. Small communities have documented needs of approximately $17.0 billion.

Conventional Wastewater Treatment Cost-Prohibitive & Inefficient.
Several industrial waste water treatment technologies have been employed to address the growing industrial water supply demand. While certainly beneficial, these methods have many constraints. Most consume significantly large amounts of energy and require significant capital and logistics to employ. Others are inefficient, capable of recycling less than half of the waste water, forcing constant resupply from a fresh source.

A Revolutionary New Approach Promises Cost-Efficiency & Renews 99.9% Of Water.
Now there is an option that is both cost-efficient and eco-friendly. NHYT innovative technology purifies contaminated wastewater and nearly eliminates the need for a fresh supply. Using NHYT's patent pending Brinecell™ electrode technology, NHYT uses high-voltage electrolysis to process and treat large quantities of wastewater, with minimal environmental impact and no added chemicals. 

Treatment of irrigation water. In many cases, the source of water for irrigation purposes may be contaminated with bacteria, making it the source of contamination of fruits and vegetables. We have the technology to treat water and transform it, making it bacteria free without any harmful residual components. On September 19th, 2006, CNN reported that the nationwide health scare over bacteria-ridden spinach widened to over 21 states, reporting that the sickness linked to the outbreak of E. Coli in the U.S. This contaminated spinach was produced at an organic farm in Salinas, California, and the problem was traced back to contaminated irrigation water.

Decontamination and disinfections of produce prior to packing. By spraying or submerging fruits and vegetables in our onsite-produced solution, we can disinfect them. This simple and safe procedure will decrease the likelihood of disseminating foodborne diseases. Since the decomposing process of produce is basically determinate by the existence of bacteria, fungus, and other microorganisms, by significantly decreasing them on produce we delay this detrimental process. We can treat produce prior to packing them, and we will not only make them safe without bacteria like E. Coli, salmonella, or others, but we can improve its shelf-life as well. Extend shelf-life of produce. By spraying a mist over fruits and vegetables at the grocery store, we can disinfect them and extend their shelf-life.

Industrial Activities:
• Refining and Fabricating • Processing
• Washing / Diluting • Cooling and Transporting

Primary Industries Served:
• Oil & Gas Industry • Food Industry
• Pulp & Paper Factories • Chemical Manufacturing Plants

Since 1949, the oil and gas industry has relied on “hydraulic fracturing” to effectively increase the total output volume of drilling sites. A large supply of water is brought on-site and pumped into the ground to stimulate oil and gas flow by creating pressure in the formation that "fractures" the rock.  This creates channels for oil and gas to flow back towards the well. Typically between one and three million gallons of water are used for each unconventional gas well stimulation operation. A constant supply of water must be maintained to supply the necessary pressure, and that means constantly transporting the water in from remote locations.

Neohydro was contracted out by a major oil and gas service company to take care of the end-to-end water needs for their domestic non-conventional gas well fracturing operations. NHYT deployed one of its 10,000 gallon/day portable Rover™ units designed to treat the produced water from vertical shale gas wells. Within days, clean water was cycled through the fraccing operation. "New" water was no longer needed. The existing water supply was capable of fueling the operation 4 more times before accumulated concentrations of salt required a fresh supply.

The NHYT unique approach allowed Neohydro employees to provide a crucial service at a price point 75% lower than conventional industrial water recycling methods such as reverse osmosis, distillation or bioremediation. Additionally, because of the NHYT mobility solution, NHYT was able to service multiple fraccing sites for our client at once. er>>>

According to the Freedonia Group, worldwide demand for water treatment equipment is projected to reach $40 billion by 2011. Although the U.S. will remain the largest water treatment market, developing nations, particularly China and India, are expected to register the fastest growth . Meanwhile, the market for water and wastewater treatment chemicals is expected to exceed $23 billion by 2010, up from $18 billion in 2005, according to a McIlvaine report .

The U.S. water recycling and reuse systems market generated revenues of $676 million in 2006 and is forecast to reach $1.3 billion in 2013. The population of the United States is forecast to grow to 420 million by mid-2050, which will put enormous strain on the nation’s existing water resources and strengthen demand for water recycling and reuse systems. A Frost & Sullivan report indicates that advanced wastewater treatment technologies such as continuous backwash filter and membrane bioreactor (MBR) are capable of producing water quality acceptable for recycling and reuse. Technology advancements will help extend existing water resources to cope with increasing demand for freshwater.

The power industry is the largest user of wastewater treatment systems followed by municipal water treatment.  Growth in the power market reflects the switch from gas to coal as the fuel for new plants. The world market for water and wastewater treatment in the power sector is forecast to rise from $3.4 billion in 2006 to $4 billion in 2010. Municipal wastewater will be the next largest segment, followed by applications in pulp and paper-making, refineries, and chemicals manufacturing. 

In the United States, there are more than 50,000 community water systems and more than 16,000 wastewater systems . Most water and wastewater systems are owned by municipal governments. The U.S. EPA estimates $202.5 billion in additional spending will be needed to control wastewater pollution for up to a 20-year period . This amount includes $134.4 billion for wastewater treatment and collection systems, $54.8 billion for combined sewer overflow corrections, and $9.0 billion for storm-water management. Small communities have documented needs of approximately $17.0 billion .

Neohydro Technology

The Company’s technology is based on a process called high-voltage electrolysis. The electrolytic process is widely used in wastewater treatment, including the purification of living wastewater and the treatment of many kinds of industrial wastewater. The process is particularly effective in treating wastewater containing a high content of surface active agents, oil-bound wastewater, plating wastewater, textile printing & dyeing wastewater and printing wastewater.

The principle of electrolysis of water...  Electrolysis of water is a process that converts water into oxygen and hydrogen gas with the aid of an electrical current. The electrolytic process requires that an electrolyte, an ionized solution or molten metallic salt, complete an electric circuit between two electrodes. When the electrodes are connected to a source of direct current, one end, called the cathode, becomes negatively (-) charged while the other end, called the anode, becomes positively (+) charged . The electrical current converts water molecules into hydrogen and oxygen. Within the electrolytic cell of the cathode, hydrogen ions accept electrons in a reduction reaction that forms hydrogen gas. At the anode end, hydroxide ions undergo an oxidation reaction and provide electrons to complete the circuit and create water and oxygen gas. The mass of a substance produced by an electrode during electrolysis is proportional to the quantity of electrical charge transferred at that electrode.

Brinecell™ 

Neohydro™ proprietary technology consists of a special Brinecell™ made from platinum, titanium, niobium, and tantalum. Using a proprietary technology, these metals are “married” to form a new alloy. This new alloy, the Brinecell™, is a powerful tool for electrolysis since it creates an electrode that can withstand higher current and has a longer life. The special Brinecell allows the simple chemical reaction of electrolysis to become valuable for commercial applications. 

NHYT’s Electrolytic Process

The Company`s treatment units are compact and portable, thus allowing rapid deployment to even the most isolated locations. mobile Neohydro has one milestone for the next twelve months. It is to manufacture and sell a sufficient number of Rovers to generate revenues in order to operate profitably.

With over thirty years of perfecting the Electrodes and the core technology, Neohydro™ is spending all its research and development in the developing of new applications. Neohydro has a main line of equipment, but in the world of water and sterilization, customizing equipment to the particular application is important. Neohydro prides itself on finding niche markets for its equipment. Solving problems in the sterilization, disinfection, and the medical world is where most of NHYT applications are discovered. Neohydro problem solving experience and knowledge of the power of electrolysis and the benefits of NHYT exclusive brinecell allows NHYT to create solutions where other technologies cannot.

The "Rover" meets the compactness and portability requirements to allow a multiple utilization and deployment even in the most regionally isolated locations. For example, the Rover unit is the size of a pick-up truck; energy is supplied by a small generator inside the Rover and travels between multiple sites, precluding the need to purchase expensive site-dedicated solutions. 

The wastewater then is pumped into treatment units and exposed to an electric field. The water is subjected to electro-oxidation long enough to destroy all biological and chemical contaminants. Trace elements re-bond when the process ends - safely and efficiently converting 99.9% of the supplied water into acceptably regulated levels of chlorine and mixed oxidants. 

This improves the processing time of traditional treatment methods, and decreases the necessary treatment cycles to achieve EPA requirements at a greatly reduced cost. NHYT licensed technology has the potential to greatly reduce this large cost to the oil industry, saving oil companies 75% on their water cost by re-using water with our electro-oxidation equipment. 

wastewater that cleans itself

on YOU Tube
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how the technology works Testing Phase
Using a test sample of your waste water, we plan a custom solution for you.

Deployment Phase
Our units are compact and portable - allowing rapid deployment to even the most regionally isolated locations.

Brinecell Electro-Oxidizes Contaminants
Waste water is pumped into our units exposed to an electric field. In a process called high-voltage electrolysis, the chemical bonds of salt (NaCl) and water (H2O) inside the solution are released; producing ozone from water, monotonic chlorine, free radicals and hydrogen peroxide. All are powerful sterilizing elements that destroy all biological oxygen demand (BOD) or chemical oxygen demand (COD) organic/inorganic pollutants and biofilm present in the water. 

Renewal of 99.9% Water Volume
The water is subjected to electro-oxidation long enough to destroy all biological and chemical contaminants. Trace elements rebond when the process ends - safely and efficiently converting 99.9% of the supplied water into acceptably regulated levels of chlorine and mixed oxidants.

Robust Compatibility In Traditional Treatments of Microfloculation
In addition to providing a single-solution approach to wastewater treatment, Neohydro can be incorporated into existing methods on a smaller scale for lients who are primarily interested in retaining their pre-existing setup.

Neohydro Management

I.J. Wilk, Ph.D., Senior Scientist
Dr.  Wilk, a world-renowned chemist in the field of electrolysis, brings more than 45 years of experience to NHYT as a commercial chemist. Dr. Wilk is a specialist in electrolysis for water purification solutions. He has worked with the Themy family, extensively testing and analyzing all processes associated with Brinecell technology. 

Prior to joining the Company, Dr. Wilk focused his research on water and air pollution problems, including acid deposition. He has testified at committee hearings for the California legislature on pollution and safety problems. Dr. Wilk received his Bachelor of Science degree in Chemistry from North Dakota State University; his Masters of Science degree in Organic Chemistry from Northwestern University; and a Doctor of Philosophy and Physical-Organic Chemistry from the University of California. 

Nicholas K. Kambouris - Secretary 
Mr. Kambouris is a successful entrepreneur and developer. As a developer of multiple million-dollar residential and commercial properties, he worked for Allpro Realty Group, Inc. in Salt Lake, Utah as a broker and sales agent from August 2001 to the present. In 2003, Mr. Kambouris formed Protos Equities, LLC of Salt Lake, which managed industrial, multi-family, retail, and residential properties acquired through mergers or acquisitions. From April 1995 through the present, he has served as President of Intermountain Equities, a Utah-based company. 
 

Recent News from Neohydro

Press Release Source: Neohydro Technologies Corp. 
Monday October 13, 8:30 am ET 

HOUSTON--(BUSINESS WIRE)--Neohydro Technologies Corp. (OTCBB:NHYT - News) was named one of the top ten most promising Energy & Clean Technology companies at the 6th Annual Rice Alliance for Technology & Entrepreneurship Energy & Clean Technology Venture Forum in Houston. Energy & Clean Technology companies showcased their new ventures for an audience of more than 600 attendees, including investors, venture capitalists, industry representatives, business leaders, advisors/mentors, service providers, and entrepreneurs.

Neohydro Technologies Corp. has developed a mobile water sterilization technology which uses a proprietary high-voltage electrolysis device that transforms water. The technology allows us to transform the way water is used in industrial and agricultural applications as well as in non-traditional applications. Neohydro can transform water into a safe and powerful sterilant for use in the medical industry. Water re-use is a fast-growing sector in many different industries.

On the surface, these applications seem unrelated, but due to unique properties of the technology, it is able to change the nature of the water itself. “Dirty” water, collected during oil and gas drilling, becomes usable for many industrial and agricultural applications, including irrigation. “Clean” water, becomes a sterilant capable of killing the most harmful of pathogens.

Neohydro’s proprietary technology uses only DC current and the waste water itself to naturally oxidize and kill all bacteria, virus, fungi, mold, BOD’s and COD’s. Perchlorates, arsenic, most metals, and all gases are neutralized during the sterilization process.

Dean Themy, CEO of Neohydro states, “I am very honored and pleased that our company has been recognized by such a prestigious group of individuals and corporations. Rice University is well-known as a top entrepreneurial university. Most recently, the Princeton Review named Rice University among the top schools in America for development of entrepreneurial companies. The audience included several CEO’s of fortune 100 companies, some of the finest venture firms, and many academics from around the world. This recognition further propels Neohydro by endorsing our technology and business plan.”

The one-day event culminated in an announcement of the Most Promising Energy & Clean Companies chosen from nearly 60 competitors and judged by the Rice Alliance Information Technology Advisory Board, based on the companies’ elevator pitch presentations. The exercise simulates meeting an investor on an elevator and having only 90 seconds to convince them to invest in your company.

Rice Alliance Managing Director Brad Burke, announced the winners of the Most Promising Energy & Clean Technology Company awards at the event. “Every year the quality of companies improves. Many of the companies at this year’s event have developed prototypes, obtained proven results and are on their second round of funding. This makes them more appealing to investors, who have also expressed appreciation for the quality of the companies.”

The Forum was supported by Chevron Technology Ventures, Locke, Lord, Bissell & Liddell, Shell, Kenda Capital, British Consulate General – Houston, UK Trade & Investment, UK Science & Technology, Huron Consulting Group, Applied Ventures, Canada Consulate General, Winstead, Leyendecker & Associates, with supporting organizations Greater Houston Partnership, Houston Technology Center, and Opportunity Houston and media sponsors Houston Business Journal and the BusinessMakers Radio Show. MORE

DALLAS--(BUSINESS WIRE)--Neohydro Technologies Corp. (OTCBB: NHYT - News) has received a Speculative Buy rating with a price target of $0.84 by Beacon Analyst, Victor Sula, 

The full report is available at http://www.beaconequity.com/main/Covered-Companies/Neohydro- Technologies-Corp/(showAs)/short. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

Anyone interested in receiving alerts regarding NHYT research should e-mail members@beaconequity.com with “NHYT” in the subject line.

In the report, the analyst writes, “The Company is bringing a proven new technology to the wastewater industry, seeking a non invasive solution that follows environmental laws, does not harm the human race, and helps conserve the earth’s most precious commodity - water. The water is treated on-site with no toxic chemicals, using only electrical power, NHYT’s proprietary electrodes and wastewater. In fact, NHYT is the only company that uses high voltage electrolysis to generate electro oxidants.”   MORE

HOUSTON--(BUSINESS WIRE)--Neohydro Technologies Corp. (OTCBB:NHYT - News) is pleased to appoint Dr. I.J. Wilk, Ph.D. as the company’s senior scientist.

Dr. I.J. Wilk, a world-renowned chemist in the field of electrolysis, brings more than 45 years of experience as a Ph.D. commercial chemist. Dr. Wilk has focused on electrolysis to generate water purification solutions. Electrolysis can be used to remove oxidative contaminates in water to eliminate environmental problems. He has worked specifically in proving the effectiveness of the Anodes, the core intellectual property of any electrolytic system.

Dr. Wilk has worked with the Themy family and has conducted extensive testing and analysis on all processes of Brinecell technology that differentiates Neohydro’s process from any other in the world. Dean Themy CEO states, “We are extremely privileged to bring such a well-known professional like Dr. Wilk on our team. His experience and knowledge with our high-voltage electrolytic processes will propel our scientific efforts immediately and will allow us to hit the ground running in all applications that we are developing for the oil and gas industry.”

With his extensive contacts and relationships, he will assemble and manage the company’s chemical and microbiology team. Dr. Wilk will oversee the company’s research and development in all waste-water treatment applications. Neohydro uses its proprietary industrial water re-use and water treatment applications to provide purified water for agriculture irrigation, drinking water, municipal water, and other point-of-use water needs.

He will also lead the company in obtaining their approvals for the sterilization of medical devices for the medical industry. Dr. Wilk will also lead the company’s “green initiative” in providing benefits using high-voltage electrolysis to eliminate the spread of E coli and salmonella in a non-invasive manner for the food industry.

Prior to joining Neohydro, Dr. Wilk has been concerned with water and air pollution problems, including acid deposition. He has testified at committee hearings for the California legislature on pollution and safety problems.

Dr. Wilk received degrees of: Bachelor of Science in Chemistry, from North Dakota State University; Masters of Science in Organic Chemistry, from Northwestern University; Doctor of Philosophy and Physical-Organic Chemistry, from the University of California.

Between the B.S. and M.S. degrees, he served in the U.S. Army with the 103rd Infantry Division.

In addition to his academic achievements Dr. Wilk is also a long-time member of the American Chemical Society, he is affiliated with the Division of Chemical Education, Division of Environmental Chemistry, Division of Agricultural and Food Chemistry, and Division of Chemical Health and Safety. He received the Outstanding Service Award from the Division of Chemical Health and Safety. He served on the executive committee of this division and was a member of the committee on chemical safety for the American Chemical Society.

Dr. Wilk also belongs to a number of other scientific societies, which include:

Sigma Xi, Scientific Research Society of America, Science Honorary
Phi Lambda Upsilon, Chemistry Honorary
Fellow, American Association for the Advancement of Science
American Society for Enology and Viticulture (1973-1992)
New York Academy of Sciences
Controlled Release Society (1982-2001)   MORE
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Financial Highlights for NHYT

The Company has started commercializing its technology and has entered the market with two units:

1.  The “Rover 15ww model" is mobile and can treat two well sites a week.  The unit is trailer-mounted, completely self sufficient and has a processing capacity of 15,000 gallons per day.  The Company is planning to sell or lease at least six Rovers 15ww models in 2009 at a price of $200,000 each. 

2. The “Electro-Ox 55 model" is a skid-mounted, all-inclusive unit designed for main stations where water can be brought in and treated at a standalone plant in close vicinity to drilling wells.  The capacity of this unit is 55,000 gallons per day. The Company plans to sell at least two units priced at $650,000 each in 2009. 

Sector: Basic Materials 
Industry: Industrial Waste Management 

Symbol NHYT
Exchange: OTCBB
Recent Price $0.19
Shares Outstanding 73.050 Million (as of 11/14/08)
Market Cap. $13.14 Million (approx)
Average 3M Volume 14,903 (as of 11/21/08)

Transfer Agent: Empire Stock Transfer Inc. 
CUSIP NO.: 64049U102 
Auditor: Michael T. Studler, C.P.A., P.C. 
General Counsel: The Law Office of Conrad C. Lysiak, P.S. 

to view the current filings for NHYT at the SEC web site, Click Herea

Company Contacts

Neohydro Technologies, Corp.
11200 Westheimer Suite 900, Houston Texas 77042
Tel: 832-295-9978 - Fax: 832-295-4877
Website: www.neohydrotech.com

Investors and Media Relations
Windfall Communications LLC - Trevor Justus
Phone: (303) 991-1144 - Toll Free: (866) 590-6589 - Fax: (303) 865-4008
E-mail (IR): info@windfallcommunications.com

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