MARKHAM, ON. October 12, 2018

On Wednesday, October 10th, 2018, Pond Technologies (TSX:V POND) joined its stakeholders in Markham, Ontario, Canada to thank them for their ongoing support and turn the page to the next chapter in the company’s journey: the commercial roll-out of its world-leading technology.

No Longer a Science Experiment: Carbon Capture Technology is Ready for Implementation at Scale

Pond has successfully developed a proprietary technology platform to capture industrial emissions and convert them into valuable algae biomass. The ground-breaking for Pond’s first commercial-scale facility at the Warden Energy Centre in Markham signifies the transition from a company focused on research & development to the execution of commercial roll-out at large emitter sites.

Pond’s technological breakthroughs – ranging from proprietary, wavelength-optimizing LED lighting to new insights about algae as an organism – were made possible through long-standing support from all levels of government in Canada. The Natural Research Council of Canada (NRC) worked with Pond in partnership with St. Marys Cement, providing both funding and access to algae experts. Mary Ng, Minister for Small Business and Export Development and Member of Parliament for Markham-Thornhill, states:

“Pond is a prime example of a Canadian technology company that has benefitted from robust federal programming to the point where it is now able to both attract foreign investment and export its home-grown technology into global markets.”

The Markham-based nutraceutical plant is anticipated to be the world’s first commercial installation to capture and convert industrial emissions into valuable nutraceutical end-products. As the Mayor of Markham, Frank Scarpitti points out:

This is a revolutionary, made-in-Markham solution that is redefining the way we interact with our environment. I brought together Pond Technologies, Markham District Energy and the City of Markham to join forces using this transformative technology that captures CO2 from our already efficient district energy plant turning it into valuable products, while reducing greenhouse gas emissions and creating additional revenue streams.”

Martin Vroegh, Senior Director, Cleantech, of the Ontario Centres of Excellence (OCE), reflects on his organization’s long partnership with Pond:

“I’m proud to have worked with Pond’s CEO Steve Martin and his team to take their vision from a mere idea to industry-scale facility over the last decade. I am inspired by the passion, focus, and resiliency the Pond team demonstrates and am bullish about the potential impact of this made-in-Ontario technology.”

 

Carbon Capture fuelled by Demand for Algae Products

Compared to high-profile projects like SaskPower’s Boundary Dam carbon capture & storage (CCS) facility, Pond’s carbon capture & utilization (CCU) technology is intended to generate revenues from the sale of its products. Algae grown at the Markham plant can be sold as natural health supplements, high-end food colouring, or as a source of sustainable protein for human or animal consumption. Pond CEO Steve Martin explains:

“Originally, we set out to manufacture biofuels but over time we realized just how lucrative algae could be in other applications. As a growing global middle-class demands a healthier, more nutritious, and protein-rich diet, Spirulina and Astaxanthin are gaining traction as health supplements and as sources of sustainable protein for animal feed and fishmeal.”

 

Natural Gas Innovation Fund Approves Grant Support

As part of the ground-breaking ceremony, Natural Gas Innovation Fund (NGIF) has announced funding support of $379,332 and is now finalizing the funding agreement with Pond Technologies. NGIF was created by the Canadian Gas Association (CGA) and its member companies to be a key player in the cleantech innovation ecosystem. NGIF portfolio of investments focus on positioning Canada as a more competitive global leader across the natural gas value chain. NGIF’s Managing Director, John Adams explains:

“Pond’s carbon utilization technology is a great fit with NGIF’s mandate – take action and advance the most promising enterprises in cleantech innovation for the natural gas sector. Not only does Pond’s technology abate emissions, it also generates significant revenue streams that can boost the bottom line for large natural gas consumers. We are excited to help realize the potential of Pond’s technology in the natural gas sector, and support Markham District Energy as a global sustainability leader.”

About the Markham Nutraceutical Plant

Pond’s first commercial-scale facility will be located at the Warden Energy Centre in Markham, Ontario. The plant is designed to capture a portion of the emissions from a district energy facility owned and operated by Markham District Energy (MDE). The design for the first phase targets an annual output capacity of 1-2 tonnes of Astaxanthin from Haematococcus algae and potential to be expanded to absorb up to 25% of the CO2 emission of the Warden Energy Centre at a later stage. This first stage is intended to produce Astaxanthin for health supplements, functional foods, cosmetics, and aquaculture markets. Phase 1 of the plant is expected to create 15 full-time jobs during operations and generate revenues to the host (MDE), the operator (Pond), and the project owners.

About Pond Technologies

Pond is a technology company located in Markham, Ontario, Canada with health & wellness, sustainable protein, and cleantech applications.

Pond has created a technology platform that grows algae and plants drastically faster and more consistent than other approaches. Since 2011, Pond has been using algae to capture greenhouse gases straight from industrial smoke stacks. From this model, emitters can generate new revenue streams from their stack gases, effectively closing the carbon loop. Algae can be used as sustainable protein for animal feed, nutraceutical products like Chlorella, Spirulina and Astaxanthin, or biofoams and green cosmetics.

 

Media Contact: Sandra Martin   |   s.tavener@pondtech.com   |   +1 (416) 399-4153

Investor Relations: Chris Cory   |   c.cory@pondtech.com   |   +1 (416) 616-0866

Forward-looking Statements 

 This news release contains forward-looking statements and information (collectively referred to as “forward-looking information”) within the meaning of applicable securities laws, about Pond’s current expectations, estimates and projections about the future. Readers are cautioned not to place undue reliance on forward-looking information as actual results may differ materially from those expressed or implied. Pond undertakes no obligation to update or revise any forward-looking information except as required by law.

 Forward-looking information in this news release is identified by words such as “intended”, “expected”, “designed”, “targets” and “potential”, including statements about: the design, plans, timing, revenue and output capacity of Pond’s nutraceutical plant; the impact of Pond’s CCU technology; and the access to Astaxanthin.

 Developing forward-looking information involves reliance on certain assumptions and consideration of certain risks and uncertainties, some of which are specific to Pond and others that apply to the industry generally. Assumptions on which the forward-looking information in this news release is based include: the completion of a previously announced transaction to provide access to Astaxanthin, the receipt of anticipated funding from NGIF, commercial demand for its products and the completion of the new facility as designed. Additional information about risks, assumptions and uncertainties and other factors that could cause Pond’s actual results to differ materially from those expressed or implied herein is contained under the “Risk Factors” section of Pond’s MD&A for the period ended June 30, 2018.

 Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved of the information contained herein.

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