Fluence Corporation to build Brazil’s largest seawater desalination plant

Fluence Corporation ASX FLC Brazil seawater desalination plant
Fluence Corporation has won a US$10 million contract with one of the world’s largest steel producers to build Brazil’s largest seawater desalination plant.

Fluence Corporation (ASX: FLC) has inked yet another deal for its water treatment services, with this latest contract to develop Brazil’s largest seawater desalination plant and estimated to be worth US$10 million (A$14.31 million).

Under the contract, Fluence will be responsible for designing, engineering and constructing the 12,000 cubic metre per day seawater desalination plant for one of the world’s largest steel producers.

The plant is expected to be operational by the end of next year and will be located at the steel company’s facility in Brazil’s east.

“This project is Fluence’s largest project to date in Brazil and provides another valuable reference site,” Fluence managing director and chief executive officer Henry Charrabe said.

“Brazil is one of our key focus markets, as Fluence enhances its footprint as the leader in global decentralised water and wastewater treatment markets with local expertise.”

“We are pleased that this important repeat international customer is once again placing their faith in Fluence’s team of engineers, and we look forward to continuing to jointly grow the relationship across their global operations,” Mr Charrabe added.

Fluence’s plant is expected to afford the steel producer water security and reduce its dependence on the government-owned local provider, with several water crises over the past few years resulting in a 30% drop in water supplies.

The plant will be designed for modular expansion and will ultimately treat 36,000 cubic metres per day – making it Brazil’s largest desalination plant.

Record March 2019 quarter

Today’s contract follows a record March quarter for Fluence, which achieved US$223 million (A$319 million) in bookings.

According to Mr Charrabe, the company’s total contracted backlog by the end of March was US$267 million – up more than 180% on the previous year.

Boosting the company’s record quarterly bookings was contracts in Egypt and Africa as well as strong sales of its Aspiral units in China and the first commercial orders of SUBRE (submerged membrane aerated biofilm reactor) for new Jamaican housing developments.

“We believe we are on tract to generate sustainable EBITDA profitability on a quarterly basis by Q4 2019, while simultaneously improving access to fresh water, improving water quality and improving the environment for our customers,” Mr Charrabe said.

Shares in Fluence were at $0.44 prior to market open.

Lorna has more than 10 years' experience as a finance journalist and editor. She has written for numerous industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has also covered a myriad of small and large cap ASX and dual-listed stocks.