H2O Innovation Wins a Water Reuse Project and Two First Nations Projects

Rhea-AI Summary

H2O Innovation has secured multiple contracts totaling $9.9 million, enhancing its Water Technologies & Services backlog to $41.2 million. Key projects include a water reuse system in California and two projects with First Nations in Canada. The California project involves ultrafiltration and reverse osmosis systems, aimed at providing high purity recycled water for agriculture. The company emphasizes its commitment to addressing water issues in Indigenous communities and is well-positioned for future growth in water recycling.

Positive

• Secured contracts worth $9.9 million, increasing backlog to $41.2 million.
• Ongoing commitment to Indigenous communities, enhancing reputation and customer relationships.
• Strategically aligned with increased investments in water recycling from the US government.

Negative

• Dependent on the successful execution and timely completion of projects amid supply chain challenges.
• Risks associated with government funding and potential changes in water infrastructure investments.

QUEBEC CITY, Oct. 05, 2021 (GLOBE NEWSWIRE) -- (TSXV: HEO) – H₂O Innovation Inc. (“H₂O Innovation” or the “Corporation”) is pleased to announce that it has recently won a water reuse project in California, two First Nations projects in Canada and another small-scale one. These contracts, with a total value of $9.9 M, bring the Water Technologies & Services (“WTS”) backlog to $41.2 M.

H₂O Innovation will be supplying a water reuse system for a major client located in Escondido, California. This project will incorporate ultrafiltration (“UF”) system followed by reverse osmosis (“RO”). The UF will be designed to have a net filtrate production capacity of 2.5 MGD (9,460 m³/day), while the RO has a permeate capacity of 2.0 MGD (7,570 m³/day). The system will treat tertiary effluent from the existing recycled water system to produce high purity recycled water that will be blended with the existing recycled water supply and used for agricultural irrigation.

“Our growing experience in the application of membrane technology to safely reuse treated water fits with our ongoing focus on this market as part of our 3-Year Strategic Plan. California and much of the Western US have experienced in recent years one of the most severe droughts on record. Water reuse is critical to the development of a diverse and resilient water supply. With the recent US Infrastructure and Jobs Act set to invest $1 billion in water recycling programs over the next five years, we consider being well positioned to be a part of the future of water reuse in North America”, stated Gregory Madden, Chief Strategy Officer of H₂O Innovation.

The Corporation was also awarded the design and supply of a membrane bioreactor (“MBR”) system with an average day flow of 50,000 gpd (189 m³/day) for the Dene Tha’ First Nation in Northern Alberta (Canada). In addition to the supply of equipment, H₂O Innovation will provide extensive training for the operations team at the customer’s site and an extended service contract to support the team for five years after the plant goes online.

“We believe in the importance of addressing the water issues of our First Nations communities. H₂O Innovation is proud to have completed more than ten water and wastewater plants for First Nations communities that are still in service today. Our business model promoting customer care and strong customer retention through premium services, like remote monitoring and training, is a key driver for the success of our First Nations projects”, added Frederic Dugré, President and Chief Executive Officer of H₂O Innovation.

The third project involves the design and supply of a 457,000 gpd (1,730 m³/day) membrane system treating surface water for a First Nation community located on the north shore of Gouin Reservoir in Quebec (Canada). The scope of supply incudes pretreatment through multimedia filtration (“MMF”), followed by nanofiltration (“NF”) trains, and ultraviolet (“UV”) radiation for disinfection. The treatment process will provide exceptional drinking water quality by removing all suspended matter and most dissolved organics. The Corporation will also provide a service contract for plant operation including remote monitoring with data acquisition and system analysis to ensure reliable operation and optimal treatment performance.

The Corporation continues to work in partnership with First Nations communities to improve on-reserve water and wastewater infrastructure and expand access to clean drinking water. Reliable infrastructure is a key priority for Indigenous Services Canada. As of March 31, 2021, $2.05 billion of targeted funds has been invested to support water and wastewater-related infrastructure projects (Source: Government of Canada). There is still work to do for the remaining 53 long-term drinking water advisories in effect in 34 First Nations communities, and the Corporation has the expertise to help solve these issues.

Prospective disclosures
Certain statements set forth in this press release regarding the operations and the activities of H₂O Innovation as well as other communications by the Corporation to the public that describe more generally management objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of securities legislation. Forward-looking statements concern analysis and other information based on forecast future results, performance and achievements and the estimate of amounts that cannot yet be determined. Those forward-looking statements, based on the current expectations of management, involve a number of risks and uncertainties, known and unknown, which may result in actual and future results, performance, and achievements of the Corporation to be materially different than the said forward-looking statements., such as the Corporation’s ability (i) to execute, complete or deliver these projects, in a timely manner and without additional costs, mostly due to the challenges resulting from the global supply chain and the Covid-19 pandemic, and (ii) to capture new opportunities and projects despite the significant investments that are expected from governments and other local authorities in water recycling programs and water and wastewater-related infrastructure projects. Information about the risk factors to which the Corporation is exposed is provided in the Annual Information Form dated September 27, 2021 available on SEDAR (www.sedar.com).

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. 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the NYSE Euronext Growth Paris accepts responsibility for the adequacy or accuracy of this release.

Source:
H₂O Innovation Inc.
www.h2oinnovation.com 

Contact:
Marc Blanchet
+1 418-688-0170
marc.blanchet@h2oinnovation.com 

FAQ

What contracts did H2O Innovation secure in October 2021?

H2O Innovation secured contracts totaling $9.9 million for projects including a water reuse system in California and multiple First Nations projects in Canada.

How does the new contracts impact H2O Innovation's backlog?

The new contracts increase H2O Innovation's Water Technologies & Services backlog to $41.2 million.

What is the significance of H2O Innovation's project in California?

The California project involves advanced ultrafiltration and reverse osmosis systems aimed at providing high purity recycled water for agricultural use.

How does H2O Innovation support First Nations communities?

H2O Innovation provides advanced water treatment systems and extensive operational training to First Nations communities, contributing to better water infrastructure.

What is H2O Innovation's strategic focus moving forward?

H2O Innovation's strategic focus is on water reuse and addressing water supply challenges, particularly in drought-affected areas like California.