Could you please tell us what Bawat Water Technologies business is?
We have developed and patented a technology to heat treat ballast water so that ships do not inadvertently transfer invasive species and disease-causing micro-organisms around the world.
What advantages does Bawats solution have?
Bawat’s technology uses only the already existing heat from the ship’s main engine. We use no chemicals or electricity, and our technology has virtually no carbon footprint. All this would not matter if the technology was not also effective and cost-efficient. But it is. It is extremely effective, and it probably has the lowest operating cost of any ballast water treatment technology available today.
There is some kind of UN convention that will give a boost to the market. Can you tell us a bit more about that?
Yes, to protect our marine environments the UN is implementing the Ballast Water Management Convention globally which basically requires all ships to treat their ballast water. The United States Coast Guard is doing the same. This creates a significant opportunity for us. There are probably up to 40.000 ships out there that still need a system installed on board. And all new ships today are delivered with a treatment system on board. We are active in both these markets. And then we have a third market, which we call ballast-water-treatment-as-a-service. This is a market we are developing alone because our heat-based system is the only approved technology that is available as a containerised solution.
Who will be your customers? Will there be different types of customers?
Our customers are mostly shipowners, and the market is completely global. We have customers all over the world. But our business model has been set up with exactly this in mind. For instance, we have no production of our own. We engineer every solution to fit on a specific ship or ship class, but almost all the parts are standard marine components that can be sourced from many suppliers, and the system itself is installed by the owner or the shipyard onsite. So even though we are a small organization, we can be, and already are, completely global.
What is your biggest challenge?
We are up against some very large competitors. And since we are the only company with a heat-based system, the market needs to learn about the advantages of our solution compared to more well known products based on chlorination and UV light radiation.
What about Bawat’s management? Are you also owners, and are you investing?
Yes, my family owns around 22% of the company. Our chairman Klaus Nyborg also owns a significant stake, and we are all investing in the IPO.
I notice Bawat’s debt burden will be reduced in connection with the IPO. Can you tell us a bit more about that?
We have previous loans from two Danish state institutions, the Danish Maritime Fund and the Danish Green Investment Fund who will be setting off previous loans against new equity in connection with the IPO. The total amount depends on the IPO, but it will in any event lead to a significant debt reduction in Bawat.
You are a Danish company. Why did you choose Stockholm?
First North Stockholm has emerged as the larger and more liquid market in the Nordic region. But we really consider this a pan-Nordic listing. Our prospectus has been passported to all four Nordic countries, and we are marketing the transaction in all four countries.
Lastly, what would you like to say to the readers that are thinking about making an investment?
We hope you will join us. The problem of invasive marine species is a global threat. Other systems on the market today often don’t work, and they use too much energy and harmful chemicals. If we are to truly protect our oceans and rivers and lakes, we need a better solution.