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De.mem plans global expansion with NSF certification for water treatment tech

International water and wastewater treatment company De.mem (ASX: DEM) has passed the US-based testing organisation National Sanitation Foundation’s (NSF) test procedures under NSF Standard 53, setting the foundation for a global push with its new certification. 

The NSF tested and approved De.mem’s Graphene Oxide enhanced (GO) membrane technology for water treatment and the certification process confirms that De.mem’s GO-enhanced membrane removes bacteria, cysts and other contaminants from water. With this, the Company can actively pursue commercialisation opportunities in the North American and global markets. 

During the initial market introduction phase, De.mem conservatively expects over $1m in new revenues in the North American and Australian domestic potable water solutions market from its wholesale distribution arrangement with Purafy/Grafoid in Canada.

Chief Executive Officer Andreas Kroell said, “With the NSF accreditation of our GO-enhanced membrane technology, we are completing a key milestone for our business. Through the partnership with Purafy, we will scale the commercial launch of our new technology into the American market for domestic water filtration. 

“We look forward to a successful commercial campaign and launch into a large and high-growth commercial market, which brings substantial additional revenue potential to De.mem.” 

De.mem is a water and wastewater treatment business that designs, builds, owns and operates turnkey water and wastewater treatment systems for mining, electronics, chemical, oil and gas, and food and beverage companies.

This approval follows earlier revenues of around $55k from sales of De.mem’s GO-enhanced filters, which Purafy promoted outside the USA. De.mem will initially distribute its technology through a partnership with Purafy/Grafoid in North America, leveraging Purafy’s manufacturing and distribution capabilities. Purafy is a division of Grafoid Inc., which specialises in graphene-based products for various commercial markets.

In the first year, the Company expects $300k in revenue from its GO-enhanced tech, increasing to $750k in the second. Plus, De.mem sees further upside from greater revenue growth and the rest of the world market entry, particularly Asia and Europe. The Asia-Pacific region accounts for the largest share of the overall market for domestic water filters. 

De.mem’s new technology was announced in 2021. It has since been validated in industrial projects in Singapore and has been proven to deliver multiple benefits. For one, it has shown a  20-40% higher water flux (volume of clean water produced) than standard polymer ultrafiltration membranes. Secondly, it showed ultra-high water flux for selected applications, which was even more significant than the above. 

The NSF approval process was rigorous and lengthy, extending for over two years. Under NSF Standard 53, water treatment products are performance tested and verified by the NSF for treating contaminants of health concern. 

The Company’s new technology is particularly well-suited for domestic water filtration applications. The membrane’s high throughput (volume of water it can process) reduces the membrane cartridge’s size while maintaining the same treatment capacity—a key requirement for applications typically exposed to space constraints. 

The global market for domestic water filtration is a large addressable market, growing faster than the overall water treatment industry. It is expected to grow by 10.5% annually from 2022 to 2030, thus making De.mem’s NSF win a timely and crucial one. 

 

Alinda Gupta

Alinda is a Business Reporter for The Sentiment

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