Mr. Marc Blanchet reports

H2O INNOVATION LEASES ITS CLEARLOGX PROPRIETARY TECHNOLOGY AT THE WORLD'S FAMOUS PEBBLE BEACH GOLF COURSE (CALIFORNIA) AND INCREASES ITS SPECIALTY COAGULANTS SALES

H2O Innovation Inc. has recently secured, following a full-scale demonstration, a leasing contract of its Clearlogx proprietary technology with one of the world's most famous PGA golf courses: Pebble Beach -- Carmel area waste water district, California. This contract, for a two-year period, will control and optimize the coagulant dosing of a two-million-gallon-per-day (7,570 cubic metres per day) membrane filtration plant. In addition, the company has continued to expand its speciality chemical sales by adding six new municipal customers in the state of Colorado.

The addition of Clearlogx at the Pebble Beach golf course will allow the existing membrane tertiary waste water treatment plant to optimize its operating costs, prevent premature clogging of the submerged membranes and ultimately extending its membranes' life. As with most water reuse treatment systems, there is a continuous challenge with combating the fouling of ultrafiltration (UF) membranes. In order to maintain filtrate production to an optimal level and avoid excessive membrane cleaning, Clearlogx is used to control the coagulant injection and to maintain a proper pH level and a stability of the particle charge.

A Clearlogx trial was conducted at the end of 2015, demonstrating a significant reduction in fouling that allowed for the desired production capacity to be maintained. Based on these results, Pebble Beach has decided to sign a two-year lease with the company. As of today, the use of Clearlogx has reduced the system's membrane fouling by at least 60 per cent, while increasing the flow by 25 per cent.

"The addition of Clearlogx to our portfolio bridges and complements our two fundamentals business pillars: our water and waste water projects and our specialty products and services (SP&S). The integration of this new technology into our company was performed quickly and efficiently. We have been able to create a value proposition for our customers by demonstrating the benefits of Clearlogx: improving UF membrane plant performance and operating costs," stated Frederic Dugre, president and chief executive officer of H2O Innovation.

Within six months following its acquisition, the company has won six new chemical supply contracts with municipalities in Colorado. Cumulatively, these new contracts provide a 40-per-cent increase in the annual total speciality coagulant sales.

About Clearlogx

Clearlogx is a proprietary technology, which precisely and continuously controls the feed of specialty coagulants used in water treatment to maintain a proper pH level and an optimum particle charge, while simultaneously improving overall treatment process efficiency. For more information, please visit the Clearlogx website.