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374Water and Arcadis Team Receives U.S. Department of Defense Success Memo Opening Pathway for AirSCWO(TM) Technology for PFAS Destruction at Commercial Scale

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374Water (NASDAQ: SCWO) announced that the U.S. Department of Defense Defense Innovation Unit issued a Success Memo to partner Arcadis, validating the economic and technical viability of 374Water’s AirSCWO PFAS destruction technology and formally closing the DIU/ESTCP prototype phase.

The Success Memo, under the federal Other Transaction Authority framework, enables federal agencies to move directly to follow-on production awards and procure AirSCWO as a commercial product. This aligns with 374Water’s Orlando Waste Destruction Services hub, which serves PFAS, biosolids, industrial sludges and other difficult waste streams and targets $3–$5 million in annual recurring revenue at initial scale following expansion to 88,000 gallons of onsite storage and upgraded AirSCWO throughput capacity.

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Positive

  • DIU Success Memo enables OTA-based federal procurement of AirSCWO technology
  • Orlando WDS hub targets $3–$5 million initial annual recurring revenue
  • 88,000 gallons of additional onsite tank storage at Orlando facility
  • Upgraded AirSCWO capacity for significantly higher throughput in Orlando
  • DoD PFAS remediation market spans 574 identified contaminated military installations

Negative

  • None.

Market Context

SCWO's active S-3/A shelf, effective through December 12, 2028, adds financing flexibility but also ...
Analysis

SCWO's active S-3/A shelf, effective through December 12, 2028, adds financing flexibility but also a potential dilution consideration. The latest comparable news event, 1255644, carried a 7.44% reaction; procurement conversion and funding needs remain key watchpoints.

Key Figures

Military installations: 574 installations Reported remediation cost: more than $400M AFFF spending: approximately one billion dollars +5 more
8 metrics
Military installations 574 installations DoD PFAS remediation
Reported remediation cost more than $400M New Hampshire Pease Air National Guard base
AFFF spending approximately one billion dollars spent to date
Tank storage 88,000 gallons expanded Orlando facility
Annual recurring revenue target $3 million to $5 million Orlando facility at initial scale
Arcadis workforce around 34,000 experts Arcadis company description
Countries of operation over 30 countries Arcadis company description
Arcadis gross revenues €5 billion 2025

Historical Context

5 past events · Latest: Aug 11 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Aug 11 earnings report Positive +7.4% Preliminary second-quarter revenue exceeded prior-year revenue and commercial deployments advanced.
Jul 30 technology update Positive +4.7% AirSCWO commercialization efforts and prior DoD-sponsored validation were highlighted.
Jul 28 clinical trial Positive +0.7% Phase 2 completion preceded the start of Phase 3 at St. Cloud.
Jul 23 regulatory validation Positive +2.4% Army technical reporting independently validated 99.9993% PFAS destruction.
Jul 16 partnership agreement Positive +2.8% 374Water and Arcadis agreed to pursue federal and commercial PFAS contracts.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

The five recent news events in the record all had positive 24-hour price reactions, ranging from 0.68% to 7.44%.

Key Terms

pfas, supercritical water oxidation, other transaction authority
3 terms
pfas technical
"permanent destruction of PFAS and hazardous organic waste streams"
PFAS are a group of human-made chemicals used in many everyday products, such as non-stick cookware, water-repellent clothing, and food packaging, because they resist heat, water, and grease. They are often called "forever chemicals" because they do not break down easily in the environment or the human body, potentially leading to health concerns. For investors, the presence of PFAS-related risks can impact companies’ reputations, legal liabilities, and future costs.
supercritical water oxidation technical
"deploying supercritical water oxidation ("SCWO") technology"
Supercritical water oxidation is a process that uses extremely hot and pressurized water to break down waste materials into harmless substances, such as carbon dioxide and water. It is considered an efficient and environmentally friendly method for treating hazardous waste streams. For investors, advancements or increased adoption of this technology can signal growth opportunities in waste management and environmental services sectors.
other transaction authority regulatory
"Under the federal Other Transaction Authority ("OTA") framework"
Other transaction authority is a legal power that lets certain U.S. government agencies sign flexible, custom agreements for research, prototypes and limited production outside standard federal contracting rules. For investors, it matters because contracts awarded under this authority can produce faster, less bureaucratic revenue and bring new suppliers into government work, but they are often less transparent and can be smaller, shorter-term or harder to predict than traditional government contracts—like a bespoke order versus a catalog purchase.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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The DoD Success Memo enables government contracting officers to rapidly procure goods and services across all Federal agencies, accelerating deployment of 374Water's AirSCWO technology into the large and growing Federal marketplace.

MORRISVILLE, NC / ACCESS Newswire / August 13, 2026 / 374Water Inc. (NASDAQ:SCWO) ("374Water" or the "Company"), a cleantech and environmental services company deploying supercritical water oxidation ("SCWO") technology for the permanent destruction of PFAS and hazardous organic waste streams, today announced that U.S. Department of Defense ("DoD") Defense Innovation Unit ("DIU") issued a Success Memo to 374Water's demonstration partner, Arcadis, validating the performance of 374Water's AirSCWO destruction technology.

The Success Memo formally validates the economic and technical viability of a regional AirSCWO hub following a robust demonstration and evaluation program under the DoD's Environmental Security Technology Certification Program ("ESTCP"). It also designates successful completion of the Prototype Project (HQ0034-20-9-DIU) under 10 U.S.C. §4022 and establishes the conditions under which federal agencies may proceed directly to follow-on production awards.

This milestone connects federal validation with 374Water's commercial Waste Destruction Services ("WDS") platform in Orlando, Florida, where the Company is building critical destruction infrastructure to serve PFAS, biosolids, industrial waste, and other difficult-to-treat waste streams.

"Over the past several months, we have been focused on building the AirSCWO operating platform, and the vision is taking shape," said Danny Bogar, CEO of 374Water.

"We have established our long-term Waste Destruction Services hub in Orlando, creating a scalable platform for recurring revenues. We continue to earn market validation under the highest scrutiny, most recently through the Orange County Sanitation District acceptance test and now this Success Memo from the DoD's Defense Innovation Unit. Together, these milestones increase our commercial momentum as we bring this critical infrastructure to the markets that need it most."

The Federal Market

The Department of Defense has identified 574 military installations where PFAS contamination requires remediation action. To date, one facility, the New Hampshire Pease Air National Guard base, has been remediated at a reported cost of more than $400M.

While destruction of AFFF is underway, with approximately one billion dollars spent to date, large legacy stockpiles of AFFF and its residual contaminants need to be destroyed and replaced with a new, non-fluorine-based firefighting foam. In addition to the DoD, the Departments of Energy and Transportation are directly involved in PFAS remediation projects around the country.

"The DIU Success Memo confirms, in writing, that AirSCWO performs as advertised, and that federal agencies can procure it as a commercial product," said Howard Teicher, VP, Government at 374Water. "The OTA is expected to significantly accelerate the Federal government's PFAS remediation efforts, and with our partnership with Arcadis and the commercial infrastructure to perform 374Water is leading the way to destroy forever chemicals forever."

What Does a "Success Memo" Mean?

The DIU/ESTCP program is one of the most comprehensive independent evaluations of PFAS destruction technologies to date, validating AirSCWO's ability to treat a broad range of real-world waste streams generated by municipalities, industry, and government agencies.

Under the federal Other Transaction Authority ("OTA") framework, a DIU Success Memo formally closes the prototype phase and authorizes production awards. For 374Water, the practical significance is procurement by federal agencies seeking permanent PFAS destruction at scale. These agencies are authorized to move directly toward deployment with a validated, OTA-eligible technology and an established partner team.

"This Success Memo is a milestone for both Arcadis and 374Water," said Dr. Craig Divine, Senior Vice President at Arcadis. "The AirSCWO technology coupled with this Success Memo offers the whole of the US Military, and in fact any Federal entity, streamlined contracting options and the ability to permanently destroy AFFF and other PFAS wastes. Arcadis is a trusted advisor with significant federal contracting experience and after the extensive technology validation completed during this DIU/ESTCP program, we are pleased to collaborate with 374Water."

The Regional Hub Model: Built for This Moment

The DIU/ESTCP prototype project evaluated the hub-and-spoke concept that underpins this strategy: centralized PFAS destruction facilities capable of receiving concentrated waste streams from multiple installations and industrial customers across a geographic region. Orlando is 374Water's first commercial expression of that model.

Commercially, the Orlando WDS platform translates those demonstration results into a service model for customers that need long-term destruction capacity for biosolids, PFAS, industrial sludges, microplastics, pharmaceuticals, and other difficult-to-manage waste streams while creating recurring revenue opportunities for 374Water.

"The Orlando Waste Destruction Service platform shows how we intend to turn validated AirSCWO performance into recurring commercial service capacity," added Bogar. "As customers seek permanent solutions for PFAS, biosolids, and other difficult waste streams, we believe 374Water is uniquely positioned at the intersection of environmental infrastructure, regulatory change, and growing demand for destruction technologies. We are building the foundation for what we believe can become a critical piece of the nation's waste destruction infrastructure."

374Water's Orlando Facility - operating under a license agreement with the City of Orlando - is the Company's advanced Waste Destruction Services hub. The expanded facility has added 88,000 gallons of onsite tank storage, upgrade AirSCWO capacity for significantly higher throughput, and target between $3 million and $5 million in annual recurring revenue at initial scale, with negotiations underway to more than double installed capacity. Iron Bridge serves as the commercial reference model for precisely the kind of regional infrastructure the DoD envisioned when funding the ESTCP prototype.

The federal procurement pathway opened by the DIU Success Memo and the OTA accelerates 374Water's ability to replicate this model at additional federal, commercial TSDF, or public-private partnership sites by reducing the need to repeat full demonstration cycles before deployment.

About 374Water

374Water Inc. (NASDAQ: SCWO) is a cleantech and environmental services company deploying supercritical water oxidation technology for the destruction of organic waste streams within the industrial, municipal, and federal markets. 374Water's AirSCWO technology is designed to efficiently destroy and mineralize a broad spectrum of nonhazardous and hazardous organic wastes, producing safe dischargeable water streams, safe mineral effluent, safe vent gas, and recoverable heat energy. 374Water's AirSCWO technology has the potential to assist its customers to meet discharge requirements, reduce or eliminate disposal costs, remove bottlenecks, and reduce litigation and other risks. 374Water continues to be a leader in innovative waste treatment solutions, dedicated to creating a greener future and eradicating harmful pollutants. Learn more by visiting www.374water.com and follow us on LinkedIn.

About Arcadis

Arcadis is the world's leading company delivering data-driven sustainable design, engineering, and consultancy solutions for natural and built assets. With around 34,000 architects, data analysts, designers, engineers, project planners, water management and sustainability experts, Arcadis is committed to accelerating a planet positive future and working with clients to make sustainable project choices, combining digital and human innovation, and embracing future-focused skills across the environment, energy and water, buildings, transport, and infrastructure sectors. Arcadis operates in over 30 countries, and reported €5 billion in gross revenues for 2025. www.arcadis.com

Forward-Looking Statements

Certain statements in this communication are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words such as "anticipate," "believe," "confidence," "could," "design," "estimate," "expect," "intend," "may," "plan," "predict," "project," "potential," or other comparable terminology are intended to identify forward-looking statements. 374Water has based these forward-looking statements on its current expectations, assumptions, estimates, beliefs, and projections. While 374Water believes these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond the 374Water's control. These forward-looking statements are subject to risks and uncertainties, including those discussed under "Risk Factors" in 374Water's Form 10-K for the year ended December 31, 2025, and in 374Water's subsequent filings and reports with the SEC. The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by laws, 374Water disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Investor Relations Contact

Belton Copp
Vice President
Direct: 401-419-1545
Belton.Copp@374water.com
www.374Water.com

SOURCE: 374Water Inc.



View the original press release on ACCESS Newswire

FAQ

What did the August 13, 2026 DIU Success Memo mean for 374Water (NASDAQ: SCWO)?

The DIU Success Memo validated 374Water’s AirSCWO technology and opened a federal procurement pathway. According to 374Water, it confirms technical and economic viability, closes the prototype phase under OTA, and allows federal agencies to move directly to follow-on production and deployment contracts.

How does the DIU Success Memo affect federal PFAS remediation contracts for 374Water (SCWO)?

The memo enables streamlined OTA-based production awards for AirSCWO by federal agencies. According to 374Water, agencies seeking permanent PFAS destruction at scale can now procure its validated technology and partner team without repeating full demonstration cycles before deployment.

What is 374Water’s Orlando Waste Destruction Services hub and its revenue target for SCWO investors?

The Orlando hub is 374Water’s advanced commercial Waste Destruction Services platform. According to 374Water, the expanded facility, with upgraded AirSCWO capacity and 88,000 gallons of storage, targets between $3 million and $5 million in annual recurring revenue at initial scale.

How large is the Department of Defense PFAS remediation market relevant to 374Water (NASDAQ: SCWO)?

The DoD has identified 574 military installations needing PFAS remediation, indicating a large potential market. According to 374Water, one base remediation reportedly exceeded $400 million, and about one billion dollars has already been spent on AFFF destruction efforts.

What waste streams can 374Water’s AirSCWO technology treat at commercial scale?

AirSCWO is designed to destroy a wide range of organic waste streams. According to 374Water, target wastes include PFAS, biosolids, industrial sludges, microplastics, pharmaceuticals, and other difficult-to-manage organic wastes, producing dischargeable water, mineral effluent, safe vent gas, and recoverable heat.

How does 374Water plan to scale its regional hub model after the DIU Success Memo?

374Water intends to replicate its Orlando regional hub model at additional sites. According to 374Water, the federal procurement pathway created by the DIU Success Memo and OTA reduces the need for repeated full demonstrations, supporting deployment at federal, commercial TSDF, or public-private partnership locations.