30-June-2023: Strategic-Partnership-Agreement-with-374Water-Systems,-Inc.PDF
Strategic Partnership Agreement with 374Water Systems, Inc.
The Environmental Group Limited (ASX:EGL) is pleased to announce that it has executed a Strategic Partnership Agreement (SPA) with 374Water Systems, Inc. (NASDAQ: SCWO) for the exclusive distribution of the AirSCWO technology in Australia and New Zealand.
374Water Systems (374Water) is a global cleantech and social impact company founded in 2018. 374Water has developed and commercialised the novel AirSCWO™ system – a modular waste slurry destruction technology which destroys all organic compounds including PFAS and other persistent organic compounds. The technology utilises a physical-thermal process powered by water above its critical point (374°C and 221 bar) and air, that yields a highly effective oxidation reaction that completely eliminates organic compounds. At scale, the process generates energy and safe by-products which can be recovered and reused.
The technology has a broad range of applications including the processing of organic waste streams including:
- Biosolids & biosolid digestate
- Landfill leachates
- Commercial & domestic wastes (oils, fats, grease, plastic and food wastes)
- Liquids, sludges, and slurries contaminated with PFAS, 1,4-Dioxane
- Spent adsorption media like granulated activated carbon & ion exchange resins
- Animal and animal processing wastes
- Persistent organic pollutants.
EGL’s established network in the waste, utilities and industrial sectors provides the opportunity for the rapid uptake of the 374Water technology which will be complimented by EGL’s existing broad service network to provide effective after sales service and support.
The AirSCWO™ technology successfully processes waste streams in a standalone manner or can be combined with EGL’s PFAS Concentration technology, making it possible to treat vast volumes of PFAS contaminated liquid waste streams and destroy PFAS – Removing the contaminant entirely from the environment.
EGL Chief Executive Officer Jason Dixon said, “We are delighted to announce our strategic partnership with 374Water, marking a significant milestone for EGL. This collaboration allows us to bring the world-class AirSCWO technology to Australia and New Zealand, revolutionising the destruction of organic compounds and addressing critical environmental challenges. With our own PFAS concentration technology, extensive customer base and robust service network, we are confident in the success and positive impact this partnership will achieve.”
374Water Chief Executive Officer Kobe Nagar adds, "Through our strategic partnership with EGL, we're excited to expand AirSCWO technology's reach to Australia and New Zealand, revolutionizing their waste treatment landscape with our innovative solution."
They key terms of the SPA include:
- EGL is granted the exclusive distribution rights of 374Water’s AirSCWO™ technology within Australia and New Zealand.
- Provisions for comprehensive training of EGL service technicians in the USA for installing, commissioning, and servicing AirSCWO™ systems operating in Australia and New Zealand by EGL.
- Opportunities to implement AirSCWO™ technology into EGL PFAS Concentration projects for PFAS destruction.
- Where requested by 374Water, the provision of Project Services which include project management, design, procurement, construction, installation, commissioning, and maintenance of AirSCWO™ systems within the territories of Australia, New Zealand and Association of Southeast Asian Nations (ASEAN) as well as Pacific Ocean island countries and territories located west of the international date line.
- 2 years validity with an option to extend by a further 3 years.
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Comment: I think this is another smart Strategic Partnership Agreement (SPA) that makes a heap of sense for EGL. And it's well within their wheelhouse, as usual.
Disclosure: I do hold EGL shares, both here and IRL. I note that the EGL SP rose +7.5% (or +1.5 cps) yesterday, and was up another half cent earlier today - although currently flat - at $0.215. Great potential! Looks signifcantly undervalued to me, based on regulatory and other tailwinds, and their market position. Also, as Jason Dixon said here recently (see Company Meetings page), they are virtually recession-proof. Most of their recurring revenue generating business units are anyway. Lots to like. Right place(/space), right time!
Now I wait for the market to catch up...