Energy Recovery Receives Letter of Award for New Middle East Gas Processing Project For Up to $11 Million
SAN LEANDRO, Calif., April 20, 2016 (GLOBE NEWSWIRE) -- Energy Recovery, Inc. (NASDAQ:ERII), the leader in pressure energy technology for industrial fluid flows, today received a Letter of Award (the “award”) to provide its IsoBoostTM technology for integration into a major gas processing plant to be constructed in the Middle East. The award value is approximately $7 million worth of equipment and services, with a potential to supply an additional $4 million worth of equipment and services. The total potential value could be worth approximately $11 million; however the optional supply may not be confirmed by our client until the latter portion of 2017.
In accordance with the award and upon issuance of a purchase order, Energy Recovery would supply and install multiple IsoBoost systems for a new-build plant, each designed with a flow capacity of approximately 6,000 gallons per minute. This award is consistent with the Company’s strategy to establish a beachhead in the Gulf Cooperation Council countries (“GCC”). A shipment could occur as early as the second quarter of 2017.
The IsoBoost system recovers otherwise wasted pressure energy during acid gas removal in gas and chemical processing plants, allowing these facilities to save energy and ensure reliable operations. Energy Recovery estimated its IsoBoost devices will reduce the plant power consumption by 6.5 MW, saving over 57 GWh of energy per year, all while reducing CO2 emissions by 39,000 tons per year. When installed, the IsoBoost units would enable the processing of 2,500 MMSCFD of non-associated gas from two fields into clean-burning natural gas.
Energy Recovery’s President and CEO Joel Gay stated, “This award represents another milestone in Energy Recovery’s corporate strategy, which emphasizes the proliferation of disruptive technologies in target-rich environments such as the GCC. While both the IsoBoost and IsoGen technologies for gas and chemical processing applications have been commercially viable for a number of years, this award is a direct result of the swift organizational changes made last year to our Emerging Markets Sales Team now led by Eric Siebert, Vice President of Corporate Strategy. The award crystallizes the IsoBoost value proposition of arbitraging wasted pressure energy, increasing plant availability and reducing the carbon footprint of what is projected to be one of the world’s largest gas processing plants. I stated during our year-end call that we would make meaningful progress in the gas processing segment in 2016. This award is a measure of our progress and confirms that 2016 is the year of delivery.”
In October 2015, Energy Recovery announced a 15-year licensing deal with Schlumberger for its VorTeq hydraulic pumping system, which took the company’s proven PX Pressure Exchanger® technology and applied it to upstream oil & gas. The IsoBoost system has taken the company’s proven turbocharger-based energy recovery system, of which there have been 3,000 installed across the globe to enable the desalination of seawater, and applied it to midstream gas processing. This award is consistent with a key component of Energy Recovery’s product strategy – creating markets where pressure energy is being wasted.
About Energy Recovery
Energy Recovery (NASDAQ:ERII) recycles and converts wasted pressure energy into a usable asset and preserves pumps that are subject to hostile processing environments. With award winning technology, Energy Recovery simplifies complex industrial systems while improving productivity, profitability, and efficiency within the oil & gas, chemical processing, and water industries. Energy Recovery products save clients more than $1.7 billion (USD) annually. Headquartered in the Bay Area, Energy Recovery has offices in Ireland, Shanghai, and Dubai. For more information about the Company, please visit our website at www.energyrecovery.com.
Forward-Looking Statements
This press release contains forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions, including without limitation expectations regarding the amount and timing of the revenues associated with the referenced award and the shipment of the IsoBoost technology, reductions in power consumption and carbon dioxide emissions from the IsoBoost technology, and Energy Recovery’s ability to deliver products containing its technologies, including the IsoBoost and VorTeq technologies. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Examples of these risks and uncertainties include the risks and uncertainties identified under “Risk Factors” in our Form 10-K for the year ended December 31, 2015 and in our other securities filings. These forward-looking statements represent Energy Recovery’s judgment as of the date of this release. Energy Recovery disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact: FTI Consulting Marc D. Cunningham ir@energyrecovery.com (713) 353-5407
Released April 20, 2016