Montrose Environmental Group Selected by Sydney Water to Install PFAS Treatment System

Rhea-AI Summary

Montrose Environmental Group (NYSE: MEG) has been selected to install its PFAS mobile treatment system at Sydney Water's Cascade Water Filtration Plant near Sydney, Australia. The initiative comes after the detection of PFAS compounds (PFOS and PFHxS) in the plant's outlet in June 2024. The multi-million-dollar system will help reduce PFAS levels below the limits proposed in the draft Australian Drinking Water Guidelines, set to be finalized in April 2025.

As Australia's largest water utility, Sydney Water chose Montrose for its expertise in water treatment solutions and PFAS-impacted water treatment in the country. The installation represents a temporary solution while Sydney Water pursues long-term facility upgrades.

Positive

• Secured major contract with Australia's largest water utility
• Multi-million-dollar system installation strengthens Australian market presence
• Strategic positioning for organic growth in the Australian environmental services sector
• Immediate revenue generation through emergency response solution

Negative

• Temporary solution nature of the contract may limit long-term revenue potential

News Market Reaction

-2.15%

1 alert

-2.15% News Effect

On the day this news was published, MEG declined 2.15%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

LITTLE ROCK, Ark., Dec. 18, 2024 /PRNewswire/ -- Montrose Environmental Group, Inc. (NYSE: MEG), a global environmental solutions company, was selected to install its per- and polyfluorinated substances (PFAS) mobile treatment system at Sydney Water's Cascade Water Filtration Plant (WFP) outside of Sydney, Australia to address PFAS in drinking water.

In June 2024, perfluorooctane sulfonate (PFOS) and PFHxS, two forms of PFAS, were detected in the outlet of the Cascade WFP. Sydney Water took prompt action to find a solution that would quickly begin removing PFAS compounds from drinking water. 

As a leading provider of water treatment solutions in Australia and a pioneer in treating PFAS-impacted water in the country, Montrose was engaged by Sydney Water, Australia's largest water utility, to implement a mobile solution for the immediate treatment of drinking water while Sydney Water pursues long-term upgrades to the Cascade WFP. Installing Montrose's system at the WFP will help reduce PFAS to below the limits proposed in the draft Australian Drinking Water Guidelines, which are set to be finalized in April 2025.

Roch Cheroux, Managing Director of Sydney Water, commented: "We are committed to leading the way with new ideas to ensure the continued delivery of world-class drinking water to our communities. This initiative to install a rapid treatment system reflects our commitment to deliver safe and reliable water to all our customers." 

"Montrose is proud to be working with Sydney Water, which has a shared commitment to providing communities with safe drinking water," said Vijay Manthripragada, president and chief executive officer of Montrose Environmental Group. "The installation of these multi-million-dollar systems underscores our commitment to the Australian market and achieves our organic growth goals in the region. By deepening our relationship with the broader Australian environmental services sector, we are confident in our prospects for 2025 and beyond."

Contacts

Investor Relations:
Adrianne Griffin
(949) 988-3383
ir@montrose-env.com

Media Relations:
Lauren Dowling
(214)-514-9809
pr@montrose-env.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/montrose-environmental-group-selected-by-sydney-water-to-install-pfas-treatment-system-302335757.html

SOURCE Montrose Environmental Group, Inc.

FAQ

What is the value of MEG's PFAS treatment system contract with Sydney Water?

The press release describes it as a multi-million-dollar system installation, but the exact contract value is not disclosed.

When will MEG's PFAS treatment system be operational at Sydney Water's Cascade plant?

The specific operational start date is not mentioned, but it's described as an immediate treatment solution following PFAS detection in June 2024.

How long will MEG's temporary PFAS treatment system be in place at Sydney Water?

The duration is not specified, but the system will be in place while Sydney Water pursues long-term upgrades to the Cascade Water Filtration Plant.

What PFAS compounds will MEG's treatment system remove at Sydney Water's plant?

The system will treat perfluorooctane sulfonate (PFOS) and PFHxS, which were detected in the outlet of the Cascade WFP in June 2024.

How does this contract align with MEG's growth strategy in Australia?

The contract strengthens MEG's presence in the Australian market and supports their organic growth goals in the region, positioning them for growth in 2025 and beyond.