San Diego’s Flagship Water Reuse Project Resumes

Rhea-AI Summary

H2O Innovation has announced the resumption of its water treatment project with the City of San Diego, California, previously suspended. The contract value increased from $8.8 million in 2017 to $11.2 million due to changes and inflation. This project is part of San Diego's multi-year Pure Water program, aimed at supplying over 40% of the city's water by 2035. As of October 31, 2021, the company's Water Technologies and Services backlog stood at $44.2 million. The project faces risks related to supply chain challenges and labor shortages.

Positive

• Contract value increased from $8.8 million to $11.2 million.
• Project is part of the Pure Water San Diego program, set to supply over 40% of the city's water by 2035.
• Water Technologies and Services backlog reached $44.2 million as of October 31, 2021.

Negative

• Risks related to project execution due to global supply chain challenges, labor shortages, and the impact of the Covid-19 pandemic.

All amounts in Canadian dollars unless otherwise stated.

QUEBEC CITY, Dec. 07, 2021 (GLOBE NEWSWIRE) -- (TSXV: HEO) – H₂O Innovation Inc. (“H₂O Innovation” or the “Corporation”) is pleased to announce that the water treatment project with the City of San Diego, California, which was temporarily suspended, is resuming its course. The contract value went from $8.8 M in 2017 to $11.2 M today due to change orders and price adjustments related to the inflation of raw material costs. The total value was included in the Water Technologies and Services business line backlog as of October 31, 2021, which amounted $44.2 M.

Pure Water San Diego is the City of San Diego’s multi-year program that will provide more than 40% of San Diego's water supply by the end of 2035. The Pure Water San Diego treatment plant, with a capacity of 30 MGD (113,560 m³/day), will use proven water purification technology that will clean recycled water to produce safe, high-quality drinking water. This infrastructure project was developed to address the need for a new water supply, thus making it possible to tackle the problems associated with drought and to diversify the supply of drinking water. A pilot test with a recycled water purification system of 1 MGD (3,785 m³/day) was set up in 2009 and was operated for several years with the aim of evaluating the feasibility of a full-scale reservoir augmentation project.

“We are thrilled that the manufacturing of the project is resuming. We have been involved with several landmark water reuse projects in California, but this is our biggest ultrafiltration reference to date”, stated Frédéric Dugré, President and Chief Executive Officer of H₂O Innovation.

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 to execute, complete or deliver this project, in a timely manner and without additional costs, mostly due to the challenges resulting from the global supply chain, the labour shortage and the Covid-19 pandemic. 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 is the current status of the H2O Innovation project in San Diego?

The water treatment project with the City of San Diego has resumed after being temporarily suspended.

What is the value of the San Diego project contract?

The contract value increased to $11.2 million from $8.8 million due to changes and price adjustments.

What is the Pure Water San Diego program?

It is a multi-year initiative to provide over 40% of San Diego's water supply by 2035 through advanced water treatment.

What is the current backlog for H2O Innovation's Water Technologies and Services?

As of October 31, 2021, the backlog amounted to $44.2 million.

What risks does H2O Innovation face regarding the San Diego project?

The company faces risks from supply chain challenges, labor shortages, and the impact of the Covid-19 pandemic.