Fluence Corporation Limited (ASX: FLC) announced that it has secured the rights to design, build and operate a seawater desalination plant in central Peru, including a 10-year Water Purchase Agreement (WPA) with an industrial client. The plant will utilize NIROBOX™ Smart Packaged units, which have already been manufactured and are in stock. Five (5) NIROBOX™ SW-XL units will be deployed initially and are expected to be shipped before the end of 2018. The plant is ultimately expected to expand to 10 NIROBOX™ SW-XL units.
The initial plant will be a US$8.4 million investment for Fluence and is expected to deliver a minimum of 1.1 million cubic meters of industrial-grade water per year for the WPA customer. Fluence expects the plant to be operational by the end of Q2 2019. The initial WPA alone is expected to generate US$1.7 million in annual revenue for the Company.
Negotiations for water purchase agreements with additional industrial customers are currently underway. Supplemental water purchase agreements with even more off-takers, if secured, would grow Fluence’s client base and have the potential to increase annual recurring revenues up to a total of US$5.0 million (assuming full plant capacity).
Commenting on this project, Fluence Managing Director & CEO Henry Charrabé said: “This is the third project financed Build Own Operate contract we have announced in 2018, and another important step in increasing our recurring revenues. Our Smart Packaged NIROBOX™ seawater system is the perfect modular solution for areas that suffer from freshwater scarcity. In this instance, we will be able to provide highly sought-after relief for industrial clients in this arid region of Peru. As Fluence expands into this new geographical and industrial region, the provision of reliable process water will allow our industrial customers to continue to plan for sustainable growth.”