374Water Awarded Waste Destruction Services Funding from the State of Minnesota for PFAS Destruction in Biosolids

Rhea-AI Summary

374Water (NASDAQ: SCWO) was awarded a state-funded Waste Destruction Services project to eliminate PFAS in biosolids and water treatment residuals for the City of St. Cloud, funded by the Legislative-Citizen Commission on Minnesota Resources and the Environment and Natural Resources Trust Fund.

The project will use 374Water's mobile AirSCWO 1 system to test PFAS destruction in undigested and thermally hydrolyzed biosolids and spent granular activated carbon, and is expected to commence in April 2026. The team includes Barr Engineering, University of St. Thomas, MnTAP and the City of St. Cloud.

Positive

• State-funded award secured for PFAS destruction project
• Project start expected April 2026
• Deployment of AirSCWO 1 mobile system for on-site demonstration
• High-profile partners include Barr Engineering and two universities
• Direct implications for 2026 commercial sales efforts

Negative

• None.

Key Figures

PFAS settlement $850 million 2018 Minnesota settlement over PFAS-related drinking water damage

Project start April 2026 Expected commencement of St. Cloud PFAS remediation project

Market Reality Check

$1.75 Last Close

Volume Volume 365,884 is 2.57x the 20-day average, indicating elevated trading interest ahead of this award. high

Technical Shares at $1.76 are well below the $3.19 200-day MA and 83.9% under the 52-week high.

Peers on Argus 1 Up

SCWO traded down 25.64% pre-announcement while peers were mixed: LIQT fell 14.53%, FTEK 4.38%, ZONE 3.03%, CLIR 2.54%, and RAIN rose 22.15%, pointing to stock-specific pressures rather than a uniform sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 29	Board appointment	Positive	-25.6%	New director with finance and turnaround experience joins Board.
Dec 26	PFAS project win	Positive	+2.6%	Cedar Rapids selects AirSCWO for PFAS destruction pilot in biosolids.
Dec 18	Leadership & split	Neutral	-0.7%	Chair appointment, insider purchases, and approval of 1‑for‑10 reverse split.
Nov 12	Earnings update	Negative	-5.4%	Q3 loss, higher expenses, low cash and reliance on $7M ATM.
Nov 04	PFAS service launch	Positive	-4.4%	North Carolina AFFF destruction contract validates WDS model.

Pattern Detected

Recent history shows several positive PFAS project and governance updates but mixed to negative price reactions, suggesting skepticism around execution, capital needs, and dilution despite operational wins.

Recent Company History

Over the last few months, 374Water reported several milestones. Governance changes included appointing Stephen J. Jones as Chairperson and adding Charles Weiser to the Board (Dec 18 and Dec 29, 2025), alongside insider open‑market purchases and a 1‑for‑10 reverse split. Commercially, the company announced PFAS destruction projects for North Carolina (Nov 4, 2025) and Cedar Rapids (Dec 26, 2025). Q3 2025 results showed rising revenue but continued losses and reliance on an ATM program. Today’s Minnesota PFAS award extends this WDS commercialization narrative.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-12-12

$100,000,000 registered capacity

An effective Form S-3/A filed on 2025-12-12 registers up to $100,000,000 of securities, including an at-the-market capacity of up to $50,000,000 in common stock through Lake Street. The shelf, already tapped via recent 424B5 filings, provides capital-raising flexibility but also highlights dilution risk and going-concern warnings noted in the prospectus.

Market Pulse Summary

The stock is surging +21.9% following this news. A strong positive reaction aligns with the stock’s commercial PFAS destruction focus, as seen in prior Cedar Rapids and North Carolina awards. However, recent price drops after governance and earnings updates, plus an effective $100,000,000 shelf and active ATM program, suggest dilution concerns could temper enthusiasm. Sustainability of gains may hinge on converting this Minnesota project into repeatable WDS revenue and demonstrating balance-sheet improvement.

Key Terms

per- and polyfluoroalkyl substances medical

"project to eliminate per- and polyfluoroalkyl substances (“PFAS”) in biosolids"

Per- and polyfluoroalkyl substances (PFAS) are a large group of man-made chemicals known for resisting water, grease and heat, used historically in products like nonstick cookware, firefighting foams and stain-resistant fabrics. They matter to investors because PFAS can persist in the environment and people, prompting strict regulations, cleanup costs, product liability and shifting consumer demand — like a hidden leak that can suddenly require expensive repairs and change a company’s future cash flow and reputation.

PFAS medical

"PFAS, a class of persistent, man-made “forever chemicals” that accumulate"

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.

biosolids technical

"PFAS ... are increasingly found in municipal biosolids."

Biosolids are the nutrient‑rich organic solids left after sewage is treated to remove pathogens and pollutants; they are often processed and applied to soil as a fertilizer or soil conditioner. For investors, biosolids matter because they create markets and regulatory obligations for wastewater utilities, waste‑management companies and agricultural suppliers, and carry both revenue potential (recycling and energy recovery) and risks from environmental rules, contamination concerns and public opposition.

AI-generated analysis. Not financial advice.

Critical Milestone Project with Direct Implications for 2026 Commercial Sales Efforts

MORRISVILLE, N.C., Dec. 30, 2025 (GLOBE NEWSWIRE) -- 374Water Inc. (NASDAQ: SCWO) ("374Water" or the "Company"), a global leader in organic waste destruction technology and services for the industrial, municipal, and federal markets, today announced it has been awarded a Waste Destruction Services (“WDS”) project to eliminate per- and polyfluoroalkyl substances (“PFAS”) in biosolids and water treatment residuals for the City of St. Cloud. The project was delivered by the Legislative-Citizen Commission on Minnesota Resources (“LCCMR”) and the State’s Environment and Natural Resources Trust Fund (“ENRTF”).

“We want to thank the LCCMR and the City of St. Cloud for their partnership and trust in 374Water,” said Stephen J. Jones, Chairman and Interim President and Chief Executive Officer of 374Water. “Minnesota has long been a national leader in confronting PFAS contamination, underscored by a landmark $850 million settlement with a large industrial manufacturer over PFAS-related damage to drinking water and natural resources in the Twin Cities region in 2018.

“This high-profile project provides an excellent opportunity to leverage our AirSCWO PFAS destruction technology on behalf of a U.S. state seeking to solve PFAS-related waste challenges. We look forward to working with our partners and stakeholders in this project to recognize AirSCWO’s unique ability to eradicate PFAS contamination in sludge, and safeguard public health,” concluded Mr. Jones.

374Water’s St. Cloud PFAS Water Remediation Project

PFAS, a class of persistent, man-made “forever chemicals” that accumulate in wastewater systems and the environment, are increasingly found in municipal biosolids. PFAS have been shown to pose significant risks to human health and the environment resulting in escalating demand for reliable and scalable PFAS destruction technologies.

374Water is part of a project team comprised of Barr Engineering Co. in Minneapolis, MN; University of St. Thomas in St. Paul, MN; Minnesota Technical Assistance Program (“MnTAP”) at the University of Minnesota in Minneapolis, MN; and the City of St. Cloud, MN. The City of St. Cloud project will utilize 374Water's mobile AirSCWO 1 System to eliminate PFAS in undigested and post-thermal hydrolysis digested biosolids and spent granular activated carbon (“GAC”). The initiative will provide a comprehensive evaluation of PFAS destruction efficiency and examine options for disposing or repurposing of the treated water and solids.

The goal of this public-private partnership is to showcase AirSCWO‘s ability to destroy PFAS in a range of wastes. Based on increasing prevalence of PFAS contamination in domestic water supplies in Minnesota communities, the State has prioritized funding projects providing clean, sustainable drinking water. The project is expected to commence in April 2026.

About The Environment and Natural Resources Trust Fund

The Environment and Natural Resources Trust Fund is a permanent dedicated fund in the Minnesota state treasury that was established by 77% voter approval of a constitutional amendment in 1988. The amendment directs 40% of the net proceeds of the Minnesota State Lottery into the ENRTF until the year 2025. Since 1991, approximately $875 million from the ENRTF has been spent on over 1,800 projects that protect and enhance Minnesota's environment and natural resources in every county of the state.

About 374Water

374Water Inc. (NASDAQ: SCWO) is a global industrial technology and services company providing innovative solutions addressing wastewater treatment and waste management issues within the industrial, municipal, and federal markets. 374Water's AirSCWO technology is designed to efficiently destroy and mineralize a broad spectrum of non-hazardous 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.

Cautionary Language on 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," “could," "estimate," "expect," "intend," "may," “plan," "predict," "project," "potential," or other comparable terminology are intended to identify forward-looking statements. These statements include those related to 374Water’s ability to destroy PFAS, the timing and outcome of the 374Water’s Waste Destruction Services project in Minnesota, demand for 374Water’s AirSCWO technology, and 374Water’s future prospects and involve known and unknown risks, uncertainties, and other factors that may cause 374Water’s actual results, levels of activity, performance, or 374Water’s achievements or those of its industry to be materially different from those expressed or implied by any 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-Q for the quarter ended September 30, 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 and Media Contact
Jim Siccardi
Senior Vice President
Direct: 984-374-1222
Jim.Siccardi@374water.com
www.374Water.com

FAQ

What did 374Water (SCWO) win from the State of Minnesota on December 30, 2025?

374Water won a state-funded Waste Destruction Services project to eliminate PFAS in biosolids for the City of St. Cloud.

When will the 374Water St. Cloud PFAS project using AirSCWO 1 begin?

The project is scheduled to commence in April 2026.

Which organizations are partnering with 374Water on the St. Cloud PFAS project?

Project partners are Barr Engineering, University of St. Thomas, MnTAP at University of Minnesota, and the City of St. Cloud.

What waste streams will 374Water test for PFAS destruction in the St. Cloud project?

The project will treat undigested and post-thermal hydrolysis digested biosolids and spent granular activated carbon.

How is the St. Cloud project funded for 374Water (SCWO)?

Funding is provided by the Legislative-Citizen Commission on Minnesota Resources and the Environment and Natural Resources Trust Fund.

What does the St. Cloud award mean for 374Water's 2026 commercial plans?

The company says the project is a critical milestone with direct implications for its 2026 commercial sales efforts.