Taronis Announces First Quarter MagneGas Production
Highest Level of Gas Production Using Butanol Feedstock
PHOENIX, AZ / ACCESSWIRE / May 28, 2019 / Taronis Technologies, Inc., ("Taronis" or "the Company") (NASDAQ: TRNX), a leading clean technology company in the renewable resources and environmental solutions industry, today announced its first quarter MagneGas production levels. The Company produced 80,080 cubic feet of MagneGas during the first three months of 2019. This represents the highest level of quarterly production under the butanol feedstock program. This is also the highest level of quarterly production produced at the Company's Clearwater, Florida production facility for retail end sales.
MagneGas is a patented industrial gas used for metal cutting purposes. The gas was previously produced from vegetable oil and a combination of fossil fuel waste streams, and then the Company transitioned to soybean oil in 2016, then butanol in 2018. The Company is currently migrating to its fourth generation feedstock, which is medical grade waste ethanol.
All corporate production reported for the first quarter of 2019 was generated by one patented, plasma arc venture flow gasification unit based in Clearwater, Florida. This production was generated on a single production shift, five days per week. This unit can operate two full shifts per day, up to seven days per week. A second gasification unit was also in operation, and was used solely for the testing of ethanol feedstock during this time. This second unit will commence production in late second quarter as the Company completes the transition to this new feedstock.
The Company also expects to launch its Flint, Texas gasification unit in late July or early August of 2019. At that time, the Clearwater operations will have additional capacity to serve the Florida market. The Texas unit will serve Texas, California and the wholesale distributor relationships. Additional gasification units will be prepared for deployment into northern and southern California in 2020. Lastly, the Company anticipates launching gas production in Amsterdam in the third quarter of 2019.
"The disclosure of these quarterly production statistics will be a meaningful part of conveying our current business model to shareholders going forward," commented Scott Mahoney, CEO of Taronis. "We have made a strategic shift in our business model over the past two years, which reinforces our clean technology, renewable energy focus."
"At the end of 2017 we made the conscious decision to shift our focus to a retail-centric sales model away from a wholesale model, giving us more control over our pricing and the rate at which customers would switch to our cleaner, MagneGas product. Our Florida based distributor has experienced tremendous success over three consecutive years using MagneGas as a lead-in product. The product is novel, and it works extremely well. As a result, we quickly competed for and won many large clients away from other providers. We leveraged tens of thousands of dollars in MagneGas sales to gain millions of dollars in other industrial gas and welding supply product revenues. Our Florida segment grew sales 58% compound annual growth from 2014 to 2017."
"We chose to replicate this exact model in bigger and more attractive markets, namely California and Texas. We felt strongly that with our MagneGas product, we could take market share if we had the scale of operations to support a much larger client base. We then made a series of acquisitions, and we increased our client base from 3,000 to more than 30,000 in little more than a year. We now have a deep base of existing clients that use millions of dollars of acetylene, propylene and propane products, and our highest priority is showing them the benefits of switching to MagneGas."
"Over the coming quarters, we will continue to share our production data. We believe that this will be an excellent indicator of how well we are doing growing our client base of MagneGas users. We look forward to sharing more information on this subject in the near future," concluded Mr. Mahoney.
About Taronis Technologies, Inc.
Taronis Technologies, Inc. (TRNX) owns a patented plasma arc technology that enables two primary end use applications for fuel generation and water decontamination.
The Company's fuel technology enables a wide use of hydrocarbon feedstocks to be readily converted to fossil fuel substitutes. The Company is developing a wide range of end market uses for these fuels, including replacement products for propane, compressed natural gas and liquid natural gas. The Company currently markets a proprietary metal cutting fuel that is highly competitive with acetylene. The Company distributes its proprietary metal cutting fuel through Independent Distributors in the U.S and through its wholly owned distributors: MagneGas Welding Supply – Southeast, LLC, MagneGas Welding Supply - South, LLC, and MagneGas Welding Supply – West, LLC. The Company operates 22 locations across California, Texas, Louisiana, and Florida.
The Company's technology can also be implemented for the decontamination of waste water, including sterilizing water, eradicating all pathogens. The technology is being tested to determine if it can completely eliminate pharmaceutical contaminants such as antibiotics, hormones and other soluble drugs suspended in contaminated water. Lastly, the technology process is capable of reducing or eliminating other contaminants, such as harmful metals, as well as nitrogen, phosphorus, and potassium levels that trigger toxic algae blooms. The technology has prospective commercial applications in the agricultural, pharmaceutical, and municipal waste markets. For more information on Taronis, please visit the Company's website at http://www.TaronisTech.com.
This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events, including our ability to raise capital, or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov.
SOURCE: Taronis Technologies, Inc.
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Released May 28, 2019