Four New Projects Add $13.6 M to H2O Innovation’s WTS Backlog

Rhea-AI Summary

H2O Innovation's Water Technologies & Services business line awarded four new contracts totaling $13.6M, increasing the Corporation's backlog to $76.7M, driven by demand for water treatment systems and the uniqueness of FiberFlexTM technology.

Positive

• New contracts totaling $13.6M increase backlog to $76.7M
• Demand for water treatment systems driving growth

Negative

• None.

All amounts are in Canadian dollars unless otherwise stated.

QUEBEC CITY--(BUSINESS WIRE)-- (TSX: HEO) – H₂O Innovation Inc. (“H₂O Innovation” or the “Corporation”) is pleased to announce that its Water Technologies & Services (WTS) business line was recently awarded four new contracts, including two industrial and two municipal projects. These new contracts, driven by the increasing demand for water treatment systems and the uniqueness of H₂O Innovation’s FiberFlex^TM technology, amount to $13.6 M and increase the Corporation’s WTS backlog to $76.7 M, its highest value to date.

All four projects employ reverse osmosis (RO) with pretreatment using H₂O Innovation’s FiberFlex^TM ultrafiltration (UF) technology, which provides clients with the flexibility to select the UF membrane type that is best suited for their water treatment needs and the option to replace it later with a different type of membrane. The core of the FiberFlex^TM technology is a versatile skid design that accommodates a wide range of module types.

The Corporation developed this adaptable and practical approach in order to offer more options to their clients, and this design benefits both plant owners and engineers. Owners should experience an enhanced operational flexibility, as the technology enables them to disassociate mechanical systems and membranes, to take advantage of product development from different manufacturers, and to facilitate membrane replacement. Similarly, engineers should benefit from more streamlined design and engineering processes, as the technology allows for multiple configuration options and minimal engineering.

“We are proud to see our clients benefit from this innovative solution, which we developed knowing how specific requirements tend to evolve over time. The fact that our clients are entrusting us with these projects reflects their need for more flexible and adaptable systems. The FiberFlex^TM technology holds commercial value, as the procurement of replacement membranes in the future becomes a competitive process. The award of these four projects demonstrates this reality quite well,” stated Frédéric Dugré, President, Chief Executive Officer and co-Founder of H₂O Innovation.

The Corporation’s ability to manufacture systems on both sides of the border will allow them to serve more clients in a timely and effective manner. This is exemplified by the fact that the Corporation’s two new industrial projects are for clients located in Kentucky (USA), and in Bécancour, Quebec (Canada). The first industrial project centers on water reuse and involves the treatment of industrial wastewater using UF and double-pass RO processes for reuse as deionized water for a confidential client. Under the second industrial contract, which H₂O Innovation has secured with a manufacturer of components for lithium batteries, the Corporation will provide a system that will be used to treat water from the St. Lawrence River to supply ultrapure water for industrial processes. This comprehensive treatment system includes UF for pretreatment, followed by a double-pass RO system and electrodeionization (EDI) to obtain high-quality water. This project also highlights the importance of having strategically located installations, as the proximity of H₂O Innovation’s Ham-Nord facility to the client was a contributing differentiator that helped the Corporation secure this contract.

H₂O Innovation has also been awarded two municipal projects, both of which are dedicated to the treatment of river water to ensure safe drinking water for the Fox Lake and Garden River communities within the Little Red River Cree Nation in Northern Alberta. The Fox Lake and Garden River systems are engineered to handle capacities of 1.2 MGD (4,500 m³/day) and 0.6 MGD (2,200 m³/day) respectively. These treatment systems employ high-pressure membranes to effectively separate total organic carbon, thereby ensuring the removal of disinfection byproduct precursors from the water sources.

“Providing safe drinking water to our First Nations communities has always been a top priority for us. Our business model promotes customer care, and the whole H₂O Innovation team truly cares about supplying reliable water treatment systems to ensure that these communities have constant access to drinking water,” added Frédéric Dugré.

Prospective disclosures

Certain information and statements contained in this press release and in other Corporation’s oral and written public communications regarding the Corporation’s business and activities and/or describing management’s objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of the applicable securities legislation. Forward-looking statements include the use of words such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “if”, “intend”, “may”, “plan”, “potential”, “predict”, “project”, “should” or “will”, and other similar expressions, as well as those usually used in the future and the conditional, although not all forward-looking statements include such words. _H2O Innovation would like to point out that forward-looking statements involve a number of uncertainties, known and unknown risks and other factors which may cause the actual results, performance or achievements of the Corporation, or of its industry, to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Major factors that may lead to a material difference between the Corporation’s actual results and the projections or expectations set forth in the forward-looking statements include, without limitation, the execution and delivery of its projects in a timely manner and without additional costs, considering the challenges resulting from the labor shortage and the inflation rate on goods and services and such other risks as described in the Corporation’s Annual Information Form dated September 27, 2022, which is available on SEDAR (www.sedar.com). The forward-looking information contained in this press release is based on information available as of the date of the release and is subject to change after this date. Unless otherwise required by the applicable securities laws, H₂O Innovation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About H₂O Innovation

Innovation is in our name, and it is what drives the organization. H₂O Innovation is a complete water solutions company focused on providing best-in-class technologies and services to its customers. The Corporation’s activities rely on three pillars: i) Water Technologies & Services (WTS) applies membrane technologies and engineering expertise to deliver equipment and services to municipal and industrial water, wastewater, and water reuse customers, ii) Specialty Products (SP) is a set of businesses that manufacture and supply a complete line of specialty chemicals, consumables and engineered products for the global water treatment industry, and iii) Operation & Maintenance (O&M) provides contract operations and associated services for water and wastewater treatment systems. Through innovation, we strive to simplify water. For more information, visit www.h2oinnovation.com.

Source:
H₂O Innovation Inc.
www.h2oinnovation.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20230906992265/en/

Marc Blanchet

+1 418-688-0170

marc.blanchet@h2oinnovation.com

Source: H2O Innovation Inc.