Australian-Singaporean wastewater treatment company De.mem (ASX: DEM) has won a $550,000 milestone contract with AGL Energy (ASX: AGL) for the supply of water treatment equipment to an Australian power station.
The contract is another win for De.mem in the Australian power generation sector and follows a $400,000 purchase order in September from an undisclosed power station.
That deal will see De.mem supply a membrane-based water treatment system for the generation of ultra-pure, de-ionised water required to produce electricity.
De.mem chief executive officer Andreas Kroell said Australia’s energy sector will continue to be an important one for the company.
“We are delighted to be growing our presence in this highly-attractive segment with high-quality institutional clients,” he said.
“[It] is an important target market for us as it requires large volumes of the highest-quality treated water for use in boilers, turbines and cooling towers.”
Mr Kroell said similar water treatment products will also be required for the production of hydrogen – a new and emerging sub-segment of the energy sector – and will provide De.mem with further growth potential.
AGL is one of Australia’s largest energy retailers, providing electricity and gas for residential and commercial use.
It generates energy from power stations which employ thermal and wind power, natural gas, hydroelectricity, solar energy, gas storage and coal seam gas sources.
De.mem designs, builds, owns and operates turnkey water and wastewater treatment systems for some of the world’s largest companies in the mining, electronics, chemical, energy and food industries.
Its systems provide a reliable supply of clean drinking water to municipalities, residential developments and hotels and resorts across the Asia-Pacific region.
In September, De.mem signed an $800,000 build-own-operate contract with global flavour and fragrance maker Givaudan, for the construction of a wastewater treatment plant at Givaudan’s Singapore factory.
De.mem released its December results last month, reporting $5.6 million in cash receipts to bring its calendar year sales to $16 million.
The figure represents a 36% increase on the previous year’s total of $11.7 million and signals a new quarterly record for the company.
De.mem closed the quarter with $544,000 in the bank, representing its first quarter of positive cashflow accelerated by large contracts during the period as it capitalises on the trend towards clean energy and renewable resources.