Energy Recovery Announces $15 Million in SWRO Contracts in India

Rhea-AI Summary

Energy Recovery, Inc. (NASDAQ: ERII) has secured $15 million in contracts to supply its PX® Pressure Exchanger® energy recovery devices to seawater reverse osmosis (SWRO) desalination plants in India. These projects are set to provide over 670,000 cubic meters of clean drinking water daily to Indian communities in 2024. This initiative aims to address India's severe water scarcity issues due to climate change, groundwater depletion, and rising water demands. The implementation of Energy Recovery's technology is expected to significantly enhance operational efficiency and reduce carbon emissions, contributing to sustainable water supply solutions in India.

Positive

• Energy Recovery, Inc. secures $15 million in SWRO contracts in India, showcasing the company's growing presence in the desalination market.

• The contracts are expected to provide over 670,000 cubic meters of clean drinking water daily to Indian communities, highlighting the positive impact of the projects on water availability in the region.

• Energy Recovery's PX® Pressure Exchanger® technology is set to improve system performance and energy efficiency in SWRO desalination plants, reducing operational costs and carbon emissions significantly.

Negative

• While the contracts indicate positive growth for Energy Recovery, Inc., the company may face challenges in meeting the delivery deadlines and ensuring the successful implementation of the PX® devices in India.

• The reliance on desalination projects to address water scarcity concerns in India underscores the pressing need for sustainable water management practices and long-term solutions to combat environmental challenges.

Energy Sector Analyst

Energy Recovery's recent announcement of securing $15 million in contracts to supply PX Pressure Exchanger devices for SWRO plants in India marks a significant step in the company's growth trajectory, particularly in the Asia-Pacific region. The scale of these projects and their expected shipment in 2024 suggest a calculated stream of revenue for Energy Recovery, which could potentially enhance the company's earnings forecast for that fiscal year. The technology employed by Energy Recovery is notable for its high energy efficiency, cutting down costs by up to 60%, which is substantial when considering the scale of SWRO operations. This not only improves the profitability of desalination plants but also aligns with global efforts to reduce carbon emissions—a critical selling point in today's environmentally-conscious market. However, one must consider the implementation and operational risks associated with expanding in a market like India, known for bureaucratic hurdles and infrastructural challenges. The robustness of Energy Recovery's technology in India's varied coastal conditions will be a test of the company's operational excellence.

Environmental Impact Analyst

The environmental implications of Energy Recovery's contracts in India are significant, offering a dual benefit: addressing water scarcity and contributing to carbon emission reductions. With India's acute water stress conditions, the provision of over 670,000 cubic meters of clean drinking water daily could dramatically improve the quality of life for many communities. The PX Pressure Exchanger technology's ability to reduce carbon emissions by 300,000 metric tons annually, according to Energy Recovery's estimates, represents a substantial positive impact in the fight against climate change. This could enhance the company's reputation as a leader in sustainable technology, a factor increasingly valued by socially responsible investors. Nevertheless, the long-term success will depend on the durability and maintenance of the technology in a region with significant environmental challenges.

SAN LEANDRO, Calif.--(BUSINESS WIRE)-- Energy Recovery, Inc. (Nasdaq: ERII) today announced $15 million in contracts to supply its PX® Pressure Exchanger® energy recovery devices to seawater reverse osmosis (SWRO) desalination plants in India. All orders are expected to ship in 2024.

All together, these plants will provide over 670,000 cubic meters of clean drinking water to communities in India each day. As one of the most water stressed countries in the world, India continues to invest in desalination projects in order to supplement its freshwater supply. The country is home to 18% of the world’s population but has only 4% of the world’s water resources.

“India continues to face threats to its water supply on numerous levels including climate change, increasing demand for municipal, industrial, and agricultural use, as well as seawater intrusion into its diminishing groundwater supply,” said Rodney Clemente, Energy Recovery Senior Vice President of Water. “We have been helping India incorporate desalination technologies since our first mega-project installation in 2007. Desalination allows India to utilize its vast coastline to help offset these threats, and incorporating the PX into desalination facilities brings the operating cost to produce fresh water down significantly by reducing energy consumption while increasing operational flexibility and availability.”

Energy Recovery’s PX recaptures otherwise wasted pressure energy within the SWRO desalination process to improve system performance and energy efficiency and reduce operational costs and carbon emissions. The PX can reduce the energy consumption of an SWRO desalination system by as much as 60%. When installed, Energy Recovery estimates the PX will prevent over 300,000 metric tons of carbon emissions from entering the atmosphere from these projects each year.

About Energy Recovery

Energy Recovery (Nasdaq: ERII) is a trusted global leader in energy efficiency technology. Building on our pressure exchanger technology platform, we design and manufacture reliable, high-performance solutions that generate cost savings and increase energy efficiency across several industries. With a strong foundation in the desalination industry, Energy Recovery has delivered transformative solutions that increase operational efficiency and deliver positive environmental impact to our customers worldwide for more than 30 years. Headquartered in the San Francisco Bay Area, Energy Recovery has manufacturing and research and development facilities across California and Texas with sales and on-site technical support available globally. For more information, please visit www.energyrecovery.com.

Forward Looking Statements

Certain matters discussed in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information currently available to us and on management's beliefs, assumptions, estimates, or projections and are not guarantees of future events or results, including the expected delivery dates of these orders. Potential risks and uncertainties and any other factors that may have been discussed herein regarding the risks and uncertainties of the Company's business, and the risks discussed under "Risk Factors" in the Company's Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") for the year ended December 31, 2022 as well as other reports filed by the Company with the SEC from time to time. Because such forward-looking statements involve risks and uncertainties, the Company's actual results may differ materially from the predictions in these forward-looking statements. All forward-looking statements are made as of today, and the Company assumes no obligation to update such statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240509478167/en/

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Source: Energy Recovery, Inc.

FAQ

What are the details of Energy Recovery, Inc.'s recent contracts in India?

Energy Recovery, Inc. has secured $15 million in contracts to supply its PX® Pressure Exchanger® energy recovery devices to seawater reverse osmosis (SWRO) desalination plants in India, set to provide over 670,000 cubic meters of clean drinking water daily.

How does Energy Recovery's technology benefit SWRO desalination plants?

Energy Recovery's PX® Pressure Exchanger® technology improves system performance, energy efficiency, and reduces operational costs and carbon emissions in SWRO desalination plants, with potential energy consumption reduction by up to 60%.

What challenges does India face in terms of water supply?

India faces threats to its water supply due to climate change, increasing demand for water, seawater intrusion into groundwater, and freshwater resources, prompting investments in desalination projects to supplement water sources.