In the heated fracking world, a Boulder company’s new chemistry may help cool the waters – Boulder Daily Camera

Clean Chemistry, a Boulder-based chemical technology company, has spent five years developing a way to clean frack water in the oil fields that it believes will slash costs enough to make re-using water affordable, a key challenge in an industry that uses thousands of gallons of the precious resource daily.

Water is a key ingredient in oil and gas production and there is growing pressure to reuse it.

But it's an expensive proposition, so expensive that most Colorado companies simply inject used frack water into the ground, a practice some consider dangerous and potentially damaging to groundwater resources.

Clean Chemistry CEO Damon Waters hopes to change that. "Our chemistry is enabling reuse in the oil field, instead of sourcing water out of a river to frack a well and then disposing of the waste water way down in the geology, never to be seen again."

Clean Chemistry is among a handful of companies nationwide working on technologies to make fracking less environmentally damaging.

This month it announced three new patents on compounds that purify industrial water. PeroxyMAX is part of a new family of chemicals known as Reactive Oxygen Species (ROS) that work by oxidizing harmful contaminants without leaving toxic residues.

Other oxidants, such as bleach or chlorine, leave behind dangerous pollutants called dioxins.

In addition to the environmental benefits of the new compounds, Clean Chemistry has developed an on-site process that is faster and less expensive than traditional oil field water recycling, Waters said.

"Our process is measured in hours instead of years," he said.

In the company's Boulder manufacturing laboratory, a series of tanks, sensors and measuring devices track the action of the oxidants before they are shipped to the oil field.

Yen Touysinhthiphonexay, Clean Chemistry Lab Manager, sets up water barrels. Clean Chemistry, a Boulder Company, has released a new treatment process for frack water June 21, 2017. (Cliff Grassmick / Staff Photographer)

Once on site, ProxyMAX works quickly, typically in a matter of minutes. More traditional treatment processes using bleach can take hours to complete and often have to be done off-site.

With the shortened time frame, costs can be cut. Before, recycling frack water cost $1 to $2 per barrel. Those costs have come down to about 50 cents a barrel since oil prices crashed in 2015, but PeroxyMAX can be done for 10 to 15 cents per barrel, Waters said.

Safety is another component in Clean Chemistry's approach. According to Waters, alternative chemistries such as chlorine dioxide, produce gas which makes people sick and which is highly explosive. "Accidents and safety are so critical in the oil field. We are improving not just the environmental footprint but also the safety of the employees," he said.

Environmental activists would like to see more water re-used in oil fields in order to reduce the use of fresh water. Laura Belanger, water resources and environmental engineer for Boulder-based Western Resource Advocates said oil companies that are able to recycle their water are helping protect the environment.

When oil and gas companies reuse water for hydraulic fracturing, "That really is the most appropriate use. I am really supportive of companies who do this," Belanger said.

PeroxyMAX treats and eliminates various contaminants in frack water so that it is clean enough to reuse. Water treated by PeroxyMAX has a healthier PH level, less iron, fewer solids and less harmful bacteria, Waters said.

How PeroxyMAX will perform longterm isn't clear yet. Waters, whose company is privately held, declined to discuss how much revenue Clean Chemistry is generating, saying only that it was profitable and earning several million dollars annually.

Founded in 2012, the company raised more than $2.4 million in 2014 and $600,00 in September of 2016, both from private offerings.

Kenneth Carlson, professor of civil and environmental engineering at CSU, said re-using water in oil fields is important, but it isn't used often enough because of cost.

"Everything is driven by cost," he said, "particularly now that oil prices are low and appear to be going lower still."

Despite the cost, Carlson said some Colorado oil companies are re-using frack water, including Noble Energy and WPX Energy. But the practice is more common in other states, such as Texas, where PeroxyMAX is being used.

FracFocus.org is a national hydraulic fracturing chemical registry that tracks frack activity nationwide. Special Projects Director Mike Nickolaus said this new class of compounds is important because it makes recycling water easier. "The technology is considered to be a good practice," he said.

As Clean Chemistry continues to grow, it is targeting other markets for its compounds, including the utility industry. Pending regulatory approval from the Environmental Protection Agency, it will begin cleaning cooling tower water at electric power plants.

Waters said the compounds can also be used in the food and beverage industry to clean produce coming from farms.

"There's a lot of really cool places that we can help that we haven't even touched yet," he said.

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In the heated fracking world, a Boulder company's new chemistry may help cool the waters - Boulder Daily Camera