LiqTech Enters Distribution Agreement with Razorback Direct for Commercialization of LiqTech Produced Water Treatment Solution in the U.S.

Rhea-AI Summary

LiqTech International, Inc. and Razorback Direct Oilfield Solutions enter into a distribution agreement to commercialize LiqTech's produced water treatment filtration solution in the U.S. The agreement aims to facilitate water re-injection, reuse, and lithium harvest in five states. LiqTech's ceramic silicon carbide filtration technology has shown success in the Middle East, exceeding performance requirements with low chemical usage and high energy efficiency.

Environmental Technology Analyst

The partnership between LiqTech International and Razorback Direct Oilfield Solutions represents a strategic move to penetrate the North American market with advanced water filtration technologies. The focus on ceramic silicon carbide filtration is particularly noteworthy, as it signifies an evolution in produced water treatment methods, which are critical in the oil and gas sector. This technology's ability to exceed performance requirements while maintaining energy efficiency and reducing chemical usage addresses key industry challenges: operational expenditure reduction and environmental sustainability.

The scalability of LiqTech's technology, combined with Razorback Direct's on-ground service and operational expertise, could result in a competitive advantage in the water treatment market. The emphasis on regulatory compliance and resource management aligns with growing environmental governance trends, potentially positioning the companies as leaders in sustainable oil and gas operations. However, the success of this agreement will hinge on the adaptability of the technology to diverse field conditions and the companies' ability to navigate the complex regulatory landscape.

Market Research Analyst

The distribution agreement marks a significant expansion of LiqTech's business operations into strategic U.S. states with high oil and gas activity. This move could potentially open up new revenue streams and diversify the company's market base. From a market perspective, the collaboration taps into the increasing demand for water management solutions in the oil and gas industry, which is driven by both regulatory pressures and cost optimization strategies.

Given the successful operation of LiqTech's first commercial test unit in the Middle East, the technology's track record may bolster confidence among potential clients in the U.S. market. The market for produced water treatment is growing and the partnership's focus on lithium harvest from produced water could also capitalize on the burgeoning demand for lithium in the battery industry. Stakeholders should monitor the adoption rate of this technology and the potential impact on LiqTech's market share and financial performance.

Energy Sector Financial Analyst

The collaboration between LiqTech and Razorback Direct could have tangible financial implications for both companies. For LiqTech, the agreement could enhance its earnings potential and market capitalization by expanding its footprint in a lucrative market. The technology's operational efficiency and cost-saving potential are likely to resonate with oil and gas operators facing pressure to reduce OpEx and comply with stringent environmental regulations.

Investors should consider the potential for increased profitability through economies of scale and the strengthening of LiqTech's competitive position. However, it is crucial to evaluate the capital requirements for scaling operations and the speed of market penetration. The long-term financial impact will depend on the sustained performance of the technology and the ability of the partnership to secure a significant share of the market amidst competitors.

BALLERUP, Denmark and HOUSTON, Feb. 14, 2024 /PRNewswire/ -- LiqTech International, Inc. (NASDAQ: LIQT), a clean technology company that manufactures and markets highly specialized filtration products and systems, and Razorback Direct Oilfield Solutions and Services LLC, a Houston based company providing water treatment solutions consultancy for oil & gas water treatment in the U.S., have entered into a distribution agreement to commercialize LiqTech's produced water treatment filtration solution for re-injection and reuse, as well as lithium harvest, in five different states in the U.S. including Texas, Oklahoma, Louisiana, Ohio, and Pennsylvania.

Leveraging LiqTech's proven ceramic silicon carbide filtration technologies, the Company's produced water treatment solution focuses on tertiary water treatment to facilitate re-injection and reuse and to meet current and future regulatory requirements. LiqTech's first commercial test unit for produced water deployed in May 2022 in the Middle East has successfully been operating for the past two years. The quality of the clean brine (permeate) exceeds the performance requirements originally defined by the end user. Furthermore, the system operates with a low amount of chemicals while demonstrating excellent energy efficiency.

Razorback Direct invests most of its Research and Development focus on the beneficial reuse and recycling of produced water. The end goal is the mitigation of OpEx through the deployment of high efficiency chemistry enabled solutions. The company's core mission surrounds the responsible management of natural resources, mitigating waste, and helping oil and gas operators extract the most value from subsurface produced resources. This agreement with LiqTech greatly enhances the overall Razorback Direct produced water treatment offering by bringing highly complementary ceramic ultrafiltration technology.

Fei Chen, President and CEO of LiqTech International, commented, "The agreement with Razorback Direct is a critical development to expand our presence in North America by showcasing the benefits of our produced water treatment solution to the oil and gas industry. Produced water treatment, and the oil and gas industry in general, are key strategic focus areas for LiqTech, with water increasingly being recognized as a scarce and valuable asset that plays a key role both in terms of overall sustainability, financial success and regulatory compliance. We strongly believe that LiqTech and Razorback Direct are two complementary partners. Razorback Direct brings service and operation forces on the ground in the U.S. and solid expertise in helping operators in the oil and gas industry streamline their operations and reduce OpEx costs. Combining this with our proven silicon carbide ceramic filtration technology can make a significant impact in helping operators effectively manage water resources."

Razorback Direct President & CEO Ray Juman, commented, "Access to LiqTech's novel and highly efficient membrane filtrations systems will provide oil and gas operators in the U.S. unprecedented access to reliable, virtually autonomous produced water cleanup solutions. This technology allows for rapid and repeatable clean-up of produced water. The solution is easily scalable and affords end users a tremendous advantage in OpEx. It is the most environmentally friendly technology out there today for produced water treatment. We see ready access to a large and growing market. We are excited to bring this into our expanding portfolio of capability. The technical engineering strength and base manufacturing capability of LiqTech provides a highly complementary fit for the work we do. We are excited to introduce this to our customers."

ABOUT LIQTECH INTERNATIONAL, INC.

LiqTech International, Inc., a Nevada corporation, is a clean technology company that provides state-of-the-art ceramic silicon carbide filtration technologies for gas and liquid purification. LiqTech's silicon carbide membranes are designed to be used in the most challenging purification applications, and its silicon carbide filters are used to control diesel exhaust soot emissions. Using nanotechnology, LiqTech develops products using its proprietary silicon carbide technology, resulting in a wide range of component membranes, membrane systems, and filters for both microfiltration and ultrafiltration applications. By incorporating LiqTech's SiC liquid membrane technology with the Company´s extensive systems design experience and capabilities, LiqTech offers unique, turnkey solutions for the most difficult water purification applications.

For more information, please visit: www.liqtech.com

Follow LiqTech on Linkedln: http://www.linkedin.com/company/liqtech-international

Follow LiqTech on Twitter: https://twitter.com/LiqTech

Forward-Looking Statements
This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in the reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation, and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.

LiqTech Company Contact
Fei Chen, Chief Executive Officer
LiqTech International, Inc.
Phone: +45 24940635
FCH@liqtech.com

LiqTech Investor Contact
Robert Blum
Lytham Partners, LLC
Phone: 602-889-9700
liqt@lythampartners.com

 

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SOURCE LiqTech International, Inc.

What is the distribution agreement about between LiqTech International, Inc. and Razorback Direct Oilfield Solutions?

The distribution agreement aims to commercialize LiqTech's produced water treatment filtration solution for re-injection, reuse, and lithium harvest in five U.S. states.

What technology does LiqTech use for produced water treatment?

LiqTech utilizes ceramic silicon carbide filtration technology for produced water treatment, focusing on tertiary water treatment.

Where has LiqTech's first commercial test unit for produced water been deployed?

LiqTech's first commercial test unit for produced water was deployed in the Middle East in May 2022.

What is the end goal of Razorback Direct's Research and Development focus?

Razorback Direct focuses on beneficial reuse and recycling of produced water to mitigate operational expenses through high efficiency solutions.

What benefits does LiqTech's ceramic ultrafiltration technology bring to Razorback Direct's produced water treatment offering?

LiqTech's ceramic ultrafiltration technology complements Razorback Direct's offering by providing highly efficient membrane filtration systems for oil and gas operators.