Cavitation Technologies Inc. announced Monday it had received orders for four of its nano reactor systems from vegetable oil refineries in North America.The Chatsworth manufacturer expects to ship the reactors this quarter and they will generate total revenue of $1.4 million for the fiscal year ending on June 30.
Three of the systems are traditional high-pressure reactors while the fourth system is a newly developed low-pressure reactor, the company said in a release.Cavitation Technologies makes fluid processing systems used to make edible oils, renewable fuels, alcoholic beverages and in water treatment.Neil Voloshin, chief operating officer for Cavitation, said that the pandemic had led to a slowdown in vegetable oil production but that it was now starting to rebound.“Both domestically and abroad, vegetable oil production rates in 2020 were lowered and this trend continued into early (this year). However, a strong domestic recovery from the pandemic has increased demand for our systems in North America,” Voloshin said in a statement. “Internationally, there is good news as well as the global oilseed farming market is expected to grow from $370 billion (last year) to over $391 billion in 2021.”Shares in Cavitation (CVAT) closed down Monday a fraction of a cent, or more than 6 percent, to 5 cents on the over-the-counter market.