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H2O Innovation Inc (2)
Symbol HEO
Shares Issued 20,926,551
Close 2015-08-31 C$ 1.47
Market Cap C$ 30,762,030
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H2O Innovation wins $7-million in new contracts

2015-08-31 08:20 ET - News Release

Mr. Marc Blanchet reports

IMPACTED BY THE DROUGHT, THE CITY OF CARLSBAD IN CALIFORNIA SELECTED H2O INNOVATION AS PART OF A DESIGN-BUILD TEAM FOR A NEW WATER REUSE SYSTEM

H2O Innovation Inc. has recently been awarded new contracts in the United States and in Canada for a total value of $7-million, including a contract with the City of Carlsbad in California for the design of a water reuse system. These new contracts bring the sales backlog for water treatment systems up to $44-million as of Aug. 27, 2015.

The water treatment expertise and knowledge of H2O Innovation contributed to a successful design-build effort with the City of Carlsbad in California for the design, manufacture, delivery and commissioning of a water reuse system. This ultrafiltration (UF) system will have a three-million-gallon-per-day (11,356 cubic metres per day) capacity and will treat the effluent of the Encina water pollution control facility. The filtrate water will then be used for non-potable water applications such as irrigation and certain industrial applications. This design-build project will be the third expansion of the Carlsbad water recycling facility and benefits from financial help provided by the State of California. "Located near our Vista facility, in the heart of a region heavily affected by a historic drought, the award of this contract in favour of H2O Innovation again demonstrates our knowledge and ability to provide added value essential to a design-build team," stated Frederic Dugre, president and chief executive officer of H2O Innovation.

Of the contracts secured in the last few weeks, two of them consist of the design, manufacture, delivery and commissioning of drinking water systems for municipalities located within the United States. The Sweetwater Authority in California, located near San Diego, has selected H2O Innovation to expand its desalination plant, which was built by the company in 2000. The existing system produces four million gallons per day (15,141 cubic metres per day) of drinking water and will be increased to five million gallons per day (18,927 cubic metres per day) with the addition of three reverse osmosis (RO) trains treating brackish water. This system expansion will benefit the cities of Bonita, Chula Vista and National City which are all strongly affected by the drought in California. Furthermore, the City of Arkansas in Kansas also contracted H2O Innovation to replace its existing lime softening system used for the production of drinking water. A new four trains RO system will be installed to produce three million gallons per day (11,356 cubic metres per day) of drinking water from groundwater. The manufacturing of this system is preceded by a 45-day piloting period to validate the treatment scheme.

Finally, the company will design, manufacture, deliver and commission a new membrane bioreactor (MBR) system to be installed in the Province of Quebec. This waste water system of three trains will treat 36 gallons per minute (196 cubic metres per day) of waste water. This is an important opportunity for H2O Innovation since this project enables the company to introduce, for the first time in the province of Quebec, one of its green waste water technologies.

We seek Safe Harbor.

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