Environmental Group’s (ASX: EGL) subsidiary Total Air Pollution Control (TAPC) has secured a multi-million-dollar contract which will see it design and supply a gas scrubbing plant for a project in Western Australia.
Environmental Group said the new contract would cement TAPC’s contribution to EGL.
“The winning of this contract is in line with the EGL strategy to grow TAPC and is an important milestone for the TAPC team who have dedicated substantial resources over a number of months to achieve this outcome,” the company said.
The value of the agreement is a fixed price of $12.9 million over two stages, with stage one encompassing design while stage two will be focused on supply.
The project is scheduled for delivery to site in the third quarter of 2020, subject to confirmation of commencement of the second phase.
EGL said TAPC had worked closely to leverage its combined team of experts to the project, producing a unique technical solution to manage the treatment of the waste gas generated by the acid baked rotary kiln to ensure environmental emission compliance.
“TAPC brings significant experience from developing similar solutions for other rare earth producers in the design, supply and commissioning of gas scrubbers,” it added.
Total Air Pollution Control
TAPC forms part of EGL’s four business units which are all geared towards improving air quality, reducing carbon emissions, enhancing waste to energy production and lifting water quality.
EGL acquired TAPC back in October 2018, with the company promoted as Australia’s leading single source supplier for air pollution control equipment and services.
TAPC designs and manufactures a range of products predominantly for local blue-chip customers within the mining and manufacturing industries.
In the 2018 financial year, TAPC’s revenue increased by 7% while contributing $629,000 in earnings before interest, tax and depreciation to EGL’s books.
Looking forward, EGL said it would consolidate TAPC’s new bases in Perth and Brisbane with a focus on mining and minerals processing facilities with expertise in lithium and rare earths.
Environmental Group’s shares were trading 12% higher in afternoon trade to $0.056.