Los Angeles – April 11, 2017 – OriginClear Inc. (OTC/QB: OCLN), a leading provider of water treatment solutions, today announced its partnership with a regional organization in the Chinese province of Shandong for remediation of a shale gas site operated by the government-owned Sinopec Group, Asia’s largest oil and gas company, and the second largest in the world, as listed in the Fortune Global 500.

The two- to three-week pilot at Sinopec’s FuLing shale gas site in Chongqing, a major city in Southwest China, is intended to qualify OriginClear’s Electro Water Separation™ (EWS™) technology for integration into a multi-stage process that’s designed to process hydraulic fracturing and flowback water for on-site reuse.

“As water quality regulations tighten and water becomes increasingly scarce, wastewater treatment technologies will become more of a necessity and less of a choice. This is the problem we are facing here on the FuLing site,” said Dr. Wang, Project Site Manager at Sinopec Energy Saving & Environment Protection Co., Ltd., the site operator. “We’re proud to see OriginClear leading the way with a process that is chemical free and extremely energy efficient while simultaneously saving operators money.”

OriginClear Technologies (Hong Kong) signed a sales license agreement with Shandong Tong Heng Environmental Technologies (SDTH) on March 24th in DongYing, the capital city of Shandong Province where SDTH is headquartered. The agreement was signed at a ceremony hosted by the Shandong Province local government, represented by Mr. Li Dongzhi, director of the Dongying Economic & Technological Development Zone. (photos of signing ceremony)

“This opportunity to demonstrate our success at a site operated by a Top Three global oil and gas company will validate our technology and potential to disrupt the Chinese market,” said ‘JL’ Kindler, President of the OriginClear Technologies Division. “We intend to scale up our operations in China, with the support and sponsorship of provincial governments.”

The pilot test will run for approximately two to three weeks. During this time, OriginClear’s Electro Water Separation™ (EWS™) technology will remove total petroleum hydrocarbons and suspended solids from the wastewater, prior to a reverse osmosis treatment. Following confirmation of EWS performance and successful removal of contaminants, the water will be deemed suitable for reuse on this site’s hydraulic fracturing process. Hydraulic fracturing requires clean water to ensure proper dosing of the variety of chemicals being used in the process.

According to the United Nations, despite having a population of 1.35 billion – 21 percent of the world’s population – China only has 7 percent of the world’s freshwater supplies. One large contributing factor is China’s rapid economic growth, fueled by heavy water consumption for production processes. Furthermore, considering 60 percent of the country’s underground water is polluted, the country’s pollution problems also contribute to the freshwater supply shortage. Capital expenditure on industrial water and wastewater treatment in China is set to increase by nearly 25 percent over the next five years, reaching $6.8 billion in 2020.