Envirosuite smells success in A$1.5m odour management deal

Envirosuite ASX EVS Environmental management sewer network Middle East
Envirosuite has signed a deal with a large state-owned public works authority.

Environmental management software developer Envirosuite (ASX: EVS) has netted a A$1.5 million deal to monitor odours for an urban sewer network in the Middle East.

The client has not been revealed however Envirosuite said it was a large state-owned public works authority in the region.

Due to the hot climate of the Middle East, city sewer levels of hydrogen sulphide, a “rotten egg” smelling gas produced by the breakdown of organic matter, are amplified.

According to Envirosuite, the client has been routinely receiving complaints about odours escaping the sewer network throughout the city.

Under the initial 12-month deal, Envirosuite will place about 40 proprietary monitoring stations around the city to monitor these hydrogen sulphide releases from manholes, vents and pumping stations.

This is expected to allow for a proactive system of early warning of potential problems and assist the public works authority with managing odour nuisance complaints.

Envirosuite chief executive Peter White said the contract win provided substantial evidence of growing traction in the company’s sales efforts as well as further geographic expansion.

“This sale is also strategic, as we believe it to be the first ever regional-scale sewer network monitoring implementation globally,” he said.

“As populations continue to grow in urban communities, interest in the use of regional network monitoring systems to assist in managing odour nuisance complaints is growing rapidly.”

“Envirosuite is ideally positioned to be the leader in this emerging global space, in addition to our other industry verticals,” White added.

Envirosuite has commercial contracts in place at seven other sites in Europe and the Middle East.

This is a new client contract and is not related to a trial announced in April with another Middle Eastern client, the company stated.

Thames Water, the UK’s largest water and wastewater services company, completed an initial commercial trial at two sites in mid-2017 before signing on for a third site in March 2018.

At the start of this month, Envirosuite announced that Thames Water had committed to a subscription at a fourth site.

Envirosuite shares jumped up 36.6% to A$0.056 on today’s announcement by midday trade.

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