Crown Announces Plans to Build and Co-Own Reverse Osmosis Plant in Mexico to Desalinate Water Collected from Slant Wells
Crown Electrokinetics (NASDAQ: CRKN) has announced plans to build and co-own a reverse osmosis (RO) water treatment plant in Cabo San Lucas, Mexico, partnering with 529 Capital. The facility will desalinate water collected from Crown's proprietary slant wells, addressing water scarcity in the Baja Peninsula. The project is expected to generate up to $40 million in recurring annual revenue.
The plant will provide clean drinking water to select resorts through a co-operative partnership over the next 5 years. The partners also plan to donate up to 500,000 gallons of clean drinking water per day to nearby communities. Construction is scheduled to begin in summer 2025, with operations expected to start in 2026.
Crown Electrokinetics (NASDAQ: CRKN) ha annunciato piani per costruire e co-proprietare un impianto di trattamento dell'acqua ad osmosi inversa (RO) a Cabo San Lucas, Messico, in collaborazione con 529 Capital. L'impianto desalinizzerà l'acqua raccolta dai pozzi inclinati proprietari di Crown, affrontando la scarsità d'acqua nella penisola di Baja. Il progetto dovrebbe generare fino a 40 milioni di dollari in entrate annuali ricorrenti.
L'impianto fornirà acqua potabile pulita a selezionati resort tramite una partnership cooperativa nei prossimi 5 anni. I partner prevedono inoltre di donare fino a 500.000 galloni di acqua potabile pulita al giorno alle comunità vicine. La costruzione è prevista per l'estate del 2025, con l'inizio delle operazioni atteso nel 2026.
Crown Electrokinetics (NASDAQ: CRKN) ha anunciado planes para construir y copropietar una planta de tratamiento de agua por ósmosis inversa (RO) en Cabo San Lucas, México, asociándose con 529 Capital. La instalación desalinizó el agua recolectada de los pozos inclinados exclusivos de Crown, abordando la escasez de agua en la península de Baja. Se espera que el proyecto genere hasta 40 millones de dólares en ingresos anuales recurrentes.
La planta proporcionará agua potable limpia a resorts seleccionados a través de una asociación cooperativa en los próximos 5 años. Los socios también planean donar hasta 500,000 galones de agua potable limpia por día a las comunidades cercanas. La construcción está programada para comenzar en el verano de 2025, con operaciones que se espera inicien en 2026.
Crown Electrokinetics (NASDAQ: CRKN)는 멕시코 카보 산 루카스에 역삼투압(RO) 수처리 시설을 건설하고 공동 소유할 계획을 발표했으며, 529 캐피털과 협력하고 있습니다. 이 시설은 Crown의 독점적인 경사 우물에서 수집한 물을 담수화하여 바하 반도의 물 부족 문제를 해결할 것입니다. 이 프로젝트는 연간 최대 4천만 달러의 반복 수익을 생성할 것으로 예상됩니다.
이 시설은 향후 5년 동안 협력 파트너십을 통해 특정 리조트에 깨끗한 음용수를 제공합니다. 파트너들은 또한 인근 지역 사회에 하루 최대 50만 갤런의 깨끗한 음용수를 기부할 계획입니다. 건설은 2025년 여름에 시작될 예정이며, 운영은 2026년에 시작될 것으로 예상됩니다.
Crown Electrokinetics (NASDAQ: CRKN) a annoncé des projets de construction et de copropriété d'une usine de traitement des eaux par osmose inverse (RO) à Cabo San Lucas, au Mexique, en partenariat avec 529 Capital. L'installation désalinisera l'eau recueillie à partir des puits inclinés propriétaires de Crown, répondant ainsi à la pénurie d'eau sur la péninsule de Baja. Le projet devrait générer jusqu'à 40 millions de dollars de revenus annuels récurrents.
L'usine fournira de l'eau potable propre à certains complexes hôteliers grâce à un partenariat coopératif au cours des 5 prochaines années. Les partenaires prévoient également de faire don de jusqu'à 500 000 gallons d'eau potable propre par jour aux communautés environnantes. La construction devrait commencer à l'été 2025, avec le démarrage des opérations prévu pour 2026.
Crown Electrokinetics (NASDAQ: CRKN) hat Pläne angekündigt, eine Umkehrosmose-Anlage (RO) zur Wasseraufbereitung in Cabo San Lucas, Mexiko, zu bauen und gemeinsam zu besitzen, in Partnerschaft mit 529 Capital. Die Anlage wird Wasser, das aus den eigenen Schrägbrunnen von Crown gesammelt wird, entsalzen und damit das Wasserproblem auf der Baja-Halbinsel angehen. Es wird erwartet, dass das Projekt bis zu 40 Millionen Dollar an wiederkehrenden jährlichen Einnahmen generiert.
Die Anlage wird in den nächsten 5 Jahren sauberes Trinkwasser an ausgewählte Resorts liefern, im Rahmen einer kooperativen Partnerschaft. Die Partner planen zudem, bis zu 500.000 Gallonen sauberes Trinkwasser pro Tag an nahegelegene Gemeinden zu spenden. Der Bau soll im Sommer 2025 beginnen, und die Betriebsaufnahme wird für 2026 erwartet.
- Expected to generate up to $40 million in recurring annual revenue
- Partnership with established local developer 529 Capital enhances project viability
- Addresses critical water scarcity issue in high-demand tourist region
- Secured future revenue through 5-year co-operative partnerships with resorts
- Project won't be operational until 2026
- Environmental impact study and permits still pending
- Significant capital investment required (amount not disclosed)
Insights
The planned reverse osmosis plant represents a significant revenue opportunity, with projected
- Long-term revenue visibility through 5-year co-operative partnerships with resorts
- Asset co-ownership structure providing recurring income streams
- Growing market demand driven by water scarcity in a major tourist destination
- Strategic timing with operations expected to begin in 2026
However, investors should note the significant timeline to revenue generation and potential execution risks in international infrastructure projects.
The technical approach combines two proven technologies - slant wells and reverse osmosis - in an innovative way to address a critical infrastructure need. The slant well design is particularly advantageous as it:
- Provides natural pre-filtration, reducing treatment costs
- Minimizes environmental impact compared to traditional intake systems
- Ensures consistent water quality and supply reliability
In Partnership With Mexico’s 529 Capital, A Leading Real Estate Development Firm From The Baja Peninsula
Expected To Produce Up To An Estimated
LOS ANGELES, Dec. 09, 2024 (GLOBE NEWSWIRE) -- Crown Electrokinetics Corp. (NASDAQ: CRKN) ("Crown" or the "Company”), a leading provider of innovative technology infrastructure solutions that benefit communities and the environment, today announced that its Water Solutions division plans to construct and co-own a state-of-the-art reverse osmosis (RO) water treatment plant in Cabo San Lucas, Mexico for the desalination of water collected from its proprietary design slant wells. The new RO plant will be built and owned in partnership with locally based, 529 Capital, a leading real estate development firm in the Baja Peninsula. Together, they will provide a new reliable supply of clean, safe drinking water to the region.
The Baja Peninsula heavily relies on groundwater aquifers as a water source, many of which are over exploited. This creates severe challenges in securing a consistent supply of clean water in a region well known for its growing population and tourism industry. Crown is providing an innovative solution to this critical problem by tapping into an unlimited recharge water source with its proprietary design slant wells. The seawater collected by the slant wells must then undergo purification, which takes place in a RO plant where advanced membrane filtration technology is used to desalinate, removing up to 99 percent of dissolved salts and contaminants.
The proposed RO plant should enable Crown and 529 Capital to provide clean drinking water to a select few of the resorts in Cabo San Lucas through a co-operative partnership over the next 5 years. The co-operative partners will be able to have a reliable water supply, ensuring a sustainable and efficient solution. In addition, Crown and the co-operative plan to impact the broader community by looking for opportunities to donate up to 500,000 gallons of clean drinking water per day to nearby areas in need, fostering a positive and lasting contribution to the region.
Crown’s Water Solution division, spearheaded by Corey Boaz, President of Construction, plans to immediately commence an environmental impact study. While 529 Capital will start the process for gathering the necessary permits in Mexico. Construction is expected to start in the summer of 2025 with an anticipated operational date in 2026.
“Building the first of many RO plants is the next step to providing a complete water solution to our slant wells. Cutting-edge technology, combined with energy-efficient designs, makes RO a sustainable and highly effective solution for addressing water scarcity and improving water quality at scale,” said Doug Croxall, CEO and Chairman, Crown. “By combining our innovative infrastructure technologies with 529 Capital’s regional expertise, we’re not only ensuring reliable access to clean water for the resorts, but also giving back to the local community.”
Mexico’s 529 Capital brings over 50 years of proven expertise in development across the Baja Peninsula. Well-known for successfully guiding projects from concept to completion, they specialize in navigating the complexities of building in this region, true to its family office roots.
“We are thrilled to partner with Crown in this important initiative. As a Mexican national, I have personally witnessed and been affected by water scarcity. Mexico’s water system faces many challenges and our government is now taking the right and necessary steps towards better policy and infrastructure,” said Victor Morales, Partner at 529 Capital. “This RO plant is more than just a solution for the resorts – it’s a transformative project that benefits the entire community, improving supply and making water available for the ones that need it. By establishing programs for donating a significant amount of clean water, we’re creating a sustainable future for Los Cabos and supporting the local infrastructure.”
About Crown
Crown (Nasdaq: CRKN) is an innovative infrastructure solutions provider dedicated to benefiting communities and the environment. Comprised of three business divisions, Smart Windows, Fiber Optics, and Water Solutions, Crown is developing and delivering cutting edge solutions that are challenging the status quo and redefining industry standards. For more information, please visit www.crownek.com.
Forward Looking Statements
Certain statements in this news release may be "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995) regarding future events or Crown’s future financial performance that involve certain contingencies and uncertainties, including those discussed in Crown’s Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent reports Crown files with the U.S. Securities and Exchange Commission from time to time, in the sections entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” . Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Crown Electrokinetic Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release. This press release does not constitute a public offer of any securities for sale. Any securities offered privately will not be or have not been registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
For more information, please contact:
Investor Relations
ir@crownek.com
Public Relations
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