AECOM to provide design and engineering services for the Clarkson Water Resource Recovery Facility in Ontario

Rhea-AI Summary

AECOM (NYSE: ACM) has been selected by the Regional Municipality of Peel to provide design and engineering services for the expansion of the Clarkson Water Resource Recovery Facility (WRRF) in Ontario's Peel Region. This will be the third major expansion, aiming to increase the facility's capacity to 500 MLD by 2029. The project includes a new standby power energy center and enhanced biological phosphorus removal, aligning with Peel Region's goal for net-zero greenhouse gas emissions by 2050. AECOM's extensive experience in complex wastewater projects and prior work on the WRRF will be pivotal. Other ongoing AECOM projects in Peel Region include the Clarkson Cogeneration Expansion and multiple drinking water treatment initiatives.

Positive

• Selected for a significant project by the Regional Municipality of Peel.
• Expansion of WRRF to 500 MLD capacity by 2029.
• Includes a new standby power energy center for critical infrastructure protection.
• Enhanced biological phosphorus removal to reduce chemical use.
• Supports Peel Region’s Energy Policy for net-zero greenhouse gas emissions by 2050.
• Leverages AECOM's extensive experience and digital capabilities.
• Part of other ongoing significant projects in Peel Region.

Negative

• Substantial investment required for the expansion project.
• Potential risks associated with meeting the 2029 completion deadline.
• Dependence on successful implementation of enhanced biological phosphorus removal.
• Challenges in maintaining operations during transition and construction phases.

Engineering Expert

The expansion of the Clarkson Water Resource Recovery Facility (WRRF) highlights AECOM's continued leadership in infrastructure projects. Notably, the facilities expansion to 500 MLD by 2029 will significantly enhance the capacity to manage wastewater for the growing population in the Greater Toronto Area. This project is technically challenging, emphasizing AECOM's mastery in digital SCADA systems for automated process control, which is critical for optimizing operations. Furthermore, the inclusion of advanced features like enhanced biological phosphorus removal and energy-efficient measures aligns with global trends towards sustainable engineering.

From an engineering perspective, AECOM's track record with previous expansions gives them a unique advantage, ensuring the project meets both present and future demands. The initiative also integrates with Peel Region's net-zero greenhouse gas emissions goal by 2050, reflecting a comprehensive approach to both engineering excellence and environmental stewardship. This alignment between technical expertise and sustainability makes this contract particularly significant.

Financial Analyst

This new contract with the Regional Municipality of Peel to expand the Clarkson WRRF is a strong positive for AECOM's financial outlook. The project underscores AECOM's reputation and reliability in high-stakes infrastructure developments. The financial implications include long-term revenue streams and potential for follow-up contracts in related sectors. AECOM's prior involvement in Phase I and II expansions, coupled with this new phase, strengthens client relations and reinforces recurring business opportunities.

While the immediate financial impact involves project revenue, the strategic advantage lies in AECOM's bolstered portfolio in sustainable infrastructure projects. These endeavors are likely to attract further investment from environmentally-conscious stakeholders, which is a growing trend in the market. The continued work in Peel Region, including projects like the Clarkson Cogeneration Expansion, suggests a stable and possibly increasing revenue base grounded in long-term, high-value projects.

Market Research Analyst

The selection of AECOM for the Clarkson WRRF expansion is indicative of broader market trends in infrastructure and environmental sustainability. This project aligns with the increasing demand for advanced wastewater treatment solutions in urbanizing regions. The push towards net-zero greenhouse gas emissions by 2050 is not only a regulatory motive but also a market differentiator. AECOM's involvement in such forward-looking projects positions them as a leader in sustainable infrastructure solutions, setting a benchmark for competitors.

For retail investors, this contract highlights AECOM's growth potential in the expanding market of environmental infrastructure. The company's proven track record and ongoing projects in the Peel Region illustrate a robust pipeline and market strategy. These factors could contribute to a favorable perception in the stock market, potentially driving up investor confidence and stock value. This strategic alignment with market and regulatory trends can provide a sustainable competitive edge for AECOM in the long term.

DALLAS--(BUSINESS WIRE)-- AECOM (NYSE: ACM), the world’s trusted infrastructure consulting firm, today announced it has been selected by the Regional Municipality of Peel (Peel Region) to provide design and engineering services for the expansion of the Clarkson Water Resource Recovery Facility (WRRF) in Ontario’s Peel Region. AECOM will be responsible for the design and implementation of the expansion, providing increased capacity and flexibility to accommodate the growing population within the Greater Toronto Area.

“As we extend our client relationship with the Peel Region, we’re excited to leverage a continuously strengthening bench of water sector expertise,” said Beverley Stinson, chief executive of AECOM’s global Water business. “As the number one Water design practice as recently ranked by Engineering-News Record, we look forward to bringing our extensive experience borne from an unrivaled portfolio of some of the world’s most complex wastewater projects to bear on the WRRF, which is expected to provide long-lasting positive impacts on residents.”

This will be the third major expansion of the Clarkson WRRF facility and the next stage to bring its capacity to 500 MLD by 2029. AECOM also served as the original designers of the Clarkson WRRF Phase I and II expansions, where its digital capabilities were instrumental in expanding the facility’s SCADA system for automated process control, enabling the client to optimize their operations throughout the entire 20+ year lifecycle.

In addition to the expansion, Phase III will include a new standby power energy center to protect the critical infrastructure of the plant and help maintain treatment during power outages. The design will also feature innovative solutions to support state-of-the-art treatment, including enhanced biological phosphorus removal to reduce chemical use and measures to reduce greenhouse gas emissions and improve energy efficiency. These initiatives will support Peel Region’s Energy Policy, which aims to achieve net-zero greenhouse gas emissions at their WRRFs by 2050.

“We are honored to be selected to help realize this critical expansion — the latest of many transformational projects our teams are delivering across the Greater Toronto Area,” said Richard Barrett, chief executive of AECOM’s Canada region. “Having successfully designed prior expansions to this major facility, our teams possess a unique technical understanding of the project and a deep familiarity with the region’s objectives as it seeks to meet the needs of a growing population.”

Other work AECOM is currently delivering for Peel Region includes the Clarkson Cogeneration Expansion, which utilizes waste methane produced in the treatment process to create green electricity, and multiple projects supporting drinking water treatment at the Arthur P. Kennedy and Lorne Park water treatment plants.

About AECOM

AECOM (NYSE: ACM) is the world’s trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle – from advisory, planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, new energy, and the environment, our public- and private-sector clients trust us to solve their most complex challenges. Our teams are driven by a common purpose to deliver a better world through our unrivaled technical and digital expertise, a culture of equity, diversity and inclusion, and a commitment to environmental, social and governance priorities. AECOM is a Fortune 500 firm and its Professional Services business had revenue of $14.4 billion in fiscal year 2023. See how we are delivering sustainable legacies for generations to come at aecom.com and @AECOM.

Forward-Looking Statements

All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of AECOM. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, but are not limited to, the following: our business is cyclical and vulnerable to economic downturns and client spending reductions; potential government shutdowns or other funding circumstances that may cause governmental agencies to modify, curtail or terminate our contracts; losses under fixed-price contracts; limited control over operations that run through our joint venture entities; liability for misconduct by our employees or consultants; failure to comply with laws or regulations applicable to our business; maintaining adequate surety and financial capacity; potential high leverage and inability to service our debt and guarantees; ability to continue payment of dividends; exposure to political and economic risks in different countries, including tariffs, geopolitical events, and conflicts; currency exchange rate and interest fluctuations; retaining and recruiting key technical and management personnel; legal claims; inadequate insurance coverage; environmental law compliance and adequate nuclear indemnification; unexpected adjustments and cancellations related to our backlog; partners and third parties who may fail to satisfy their legal obligations; managing pension costs; AECOM Capital real estate development projects; cybersecurity issues, IT outages and data privacy; risks associated with the benefits and costs of the sale of our Management Services and self-perform at-risk civil infrastructure, power construction and oil and gas businesses, including the risk that any purchase adjustments from those transactions could be unfavorable and result in any future proceeds owed to us as part of the transactions could be lower than we expect; as well as other additional risks and factors that could cause actual results to differ materially from our forward-looking statements set forth in our reports filed with the Securities and Exchange Commission. Any forward-looking statements are made as of the date hereof. We do not intend, and undertake no obligation, to update any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240522496299/en/

Media Contact:

Brendan Ranson-Walsh

Senior Vice President, Global Communications

1.213.996.2367

Brendan.Ranson-Walsh@aecom.com

Investor Contact:

Will Gabrielski

Senior Vice President, Finance, Treasurer

1.213.593.8208

William.Gabrielski@aecom.com

Source: AECOM

FAQ

What services will AECOM provide for the Clarkson WRRF expansion?

AECOM will provide design and engineering services for the expansion of the Clarkson Water Resource Recovery Facility in Ontario's Peel Region.

What is the target capacity for the Clarkson WRRF after expansion?

The target capacity for the Clarkson WRRF is 500 MLD by 2029.

What are some key features of the Clarkson WRRF expansion?

Key features include a new standby power energy center, enhanced biological phosphorus removal, and measures to reduce greenhouse gas emissions.

What are AECOM's other projects in Peel Region?

Other projects include the Clarkson Cogeneration Expansion and multiple drinking water treatment initiatives at the Arthur P. Kennedy and Lorne Park water treatment plants.

How does the Clarkson WRRF expansion align with Peel Region’s Energy Policy?

The expansion supports Peel Region’s Energy Policy by aiming for net-zero greenhouse gas emissions at WRRFs by 2050.