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Energy Recovery Announces $28 Million in Desalination Contracts for Flagship PX Q400 Energy Recovery Device

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Energy Recovery, Inc. (ERII) has secured contracts worth over $28 million to supply its latest PX Q400 energy recovery device to mega desalination projects in the Gulf region. The PX Q400 is praised for its top-of-the-line performance and cost-effectiveness, making it the preferred choice for seawater desalination. The contracts highlight Energy Recovery's commitment to innovation and sustainability, with projected carbon emission savings equivalent to removing 130,000 cars from the road annually.
Positive
  • Energy Recovery, Inc. (ERII) secures contracts worth over $28 million for PX Q400 ERD.
  • The PX Q400 offers top-of-the-line performance and cost-effectiveness for desalination projects.
  • Energy Recovery's innovation and reliability are showcased through the awards.
  • Projected carbon emission savings equivalent to removing 130,000 cars from the road annually.
Negative
  • None.

The recent contract awards for Energy Recovery, Inc. signify a substantial development for the company, given the sizeable $28 million value and the strategic importance of the Gulf region for desalination projects. As desalination becomes increasingly critical in water-stressed areas, the deployment of the PX Q400 could position Energy Recovery as a leader in energy-efficient desalination technology. The market for desalination is expected to grow, driven by scarcity of freshwater resources and Energy Recovery's innovative solutions could capture a significant market share, potentially affecting the company's revenue growth and stock valuation positively.

The environmental benefits associated with the PX Q400, such as the substantial reduction in carbon emissions, align with global sustainability trends and could enhance the company's brand reputation. This environmental impact could also lead to potential future incentives from governments or environmental bodies, which might further influence investor sentiment and the company's market positioning.

From an environmental technology perspective, the PX Q400 represents a significant advancement in the field of seawater reverse osmosis (SWRO) desalination. Its claim of best-in-class performance and lowest projected life cycle cost due to reduced maintenance and operational expenses could disrupt the industry's standard practices. The PX Q400's ability to prevent over 600,000 metric tons of carbon emissions annually is a testament to its efficiency. If these projections hold true, the PX Q400 could set a new benchmark for environmental sustainability in industrial water treatment, potentially influencing regulatory standards and customer expectations in the desalination technology sector.

Analyzing the financial implications of the contracts for Energy Recovery Inc., the $28 million deal is likely to have a positive impact on the company's financial performance. The expected shipment by Q4 2024 provides a clear timeline for revenue recognition, which could be factored into the company's future earnings projections. Investors will be interested in the company's ability to maintain its competitive edge through innovation, as evidenced by the PX Q400 and its capacity to secure additional contracts in the future. The long-term benefits of reduced operational costs for clients could lead to sustained demand for the company's products, potentially improving the company's profitability and providing a stable stream of future cash flows.

SAN LEANDRO, Calif.--(BUSINESS WIRE)-- Energy Recovery, Inc. (Nasdaq: ERII) today announced the award of contracts totaling over $28 million to supply its newest top-of-the-line PX® Pressure Exchanger® energy recovery device (ERD), the PX Q400, to mega desalination projects in the Gulf region.

These facilities will produce nearly 1.5 million cubic meters of water for municipal use in the Gulf, a significantly water-stressed region, and the awards demonstrate confidence in Energy Recovery’s latest innovation, the PX Q400. With the highest capacity and efficiency of any PX® Pressure Exchanger®, the Q400 offers best-in-class performance and the lowest projected life cycle cost of any proven ERD for seawater reverse osmosis (SWRO) desalination due to lower maintenance and operational expenditures.

“The PX Q400 is the new gold standard ERD for SWRO desalination,” said Rodney Clemente, Energy Recovery Senior Vice President of Water. “These mega desalination facilities are fulfilling a critical need to supply water in the Gulf at a low cost, and by choosing the PX Q400, our customers are demonstrating trust in our ability to innovate and provide the best performing ERD while continuing to deliver the reliability that they expect from Energy Recovery.”

All orders are expected to ship by Q4 2024. When installed, the PX Q400 devices are projected to prevent more than 600,000 metric tons of carbon emissions from entering the atmosphere, which is equivalent to removing roughly 130,000 passenger cars from the road each year.

About Energy Recovery

Energy Recovery (Nasdaq: ERII) is a trusted global leader in energy efficiency technology. Building on our pressure exchanger technology platform, we design and manufacture reliable, high-performance solutions that generate cost savings and increase energy efficiency across several industries. With a strong foundation in the desalination industry, Energy Recovery has delivered transformative solutions that increase operational efficiency and deliver positive environmental impact to our customers worldwide for more than 30 years. Headquartered in the San Francisco Bay Area, Energy Recovery has manufacturing, research, and development facilities across California and Texas, with sales and on-site technical support available globally. For more information, please visit www.energyrecovery.com.

Forward Looking Statements

Certain matters discussed in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended These forward-looking statements are based on information currently available to us and on management's beliefs, assumptions, estimates, or projections and are not guarantees of future events or results, including the timing of shipments and the expected reduction in carbon emissions due to our products. Potential risks and uncertainties and any other factors that may have been discussed herein regarding the risks and uncertainties of the Company's business, and the risks discussed under "Risk Factors" in the Company's Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") for the year ended December 31, 2022 as well as other reports filed by the Company with the SEC from time to time. Because such forward-looking statements involve risks and uncertainties, the Company's actual results may differ materially from the predictions in these forward-looking statements. All forward-looking statements are made as of today, and the Company assumes no obligation to update such statements.

Press Inquiries

pr@energyrecovery.com

Investor Inquiries

ir@energyrecovery.com

Source: Energy Recovery, Inc.

FAQ

What is the latest top-of-the-line ERD device announced by Energy Recovery, Inc.?

The latest top-of-the-line ERD device announced by Energy Recovery, Inc. is the PX Q400.

How much are the contracts awarded to Energy Recovery, Inc. worth?

The contracts awarded to Energy Recovery, Inc. are worth over $28 million.

What is the projected carbon emission savings from installing the PX Q400 devices?

The projected carbon emission savings from installing the PX Q400 devices are equivalent to removing roughly 130,000 passenger cars from the road each year.

Which region will benefit from the water produced by the desalination projects?

The Gulf region will benefit from the water produced by the desalination projects.

When are all orders expected to ship?

All orders are expected to ship by Q4 2024.

Energy Recovery, Inc.

NASDAQ:ERII

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About ERII

energy recovery (nasdaq:erii) recycles and converts wasted pressure energy into a usable asset and preserves pumps that are subject to hostile processing environments. with award winning technology, energy recovery simplifies complex industrial systems while improving productivity, profitability, and efficiency within the oil & gas, chemical processing, and water industries. energy recovery products save clients more than $1.5 billion (usd) annually. headquartered in the bay area, energy recovery has offices in ireland, shanghai, and dubai. for more information about the company, please visit our website at www.energyrecovery.com.