Fluence bags $7.2m contract in Brazil for a water treatment system within a thermal power complex

Wastewater treatment and reuse company Fluence Corporation (ASX: FLC) has secured a $7.2 million contract to provide a demineralised water treatment system for Eneva in Silves, Amazonas, Brazil. Eneva is a private operator of onshore natural gas in Brazil, with a strong presence in Amazonas. 

The system will be part of Eneva’s new $1.6 billion thermal power complex, Azulão I and II, generating 950 MW.h. Given the remote location of the Azulão project, the Fluence System will be skid-mounted to reduce construction and commissioning times. 

The water treatment system will use ultrafiltration (UF), two-pass reverse osmosis and continuous electrodeionisation (CEDI) to secure demineralised water quality, meet Brazil’s growing energy demand and boost Amazonas’s economic and energy development. 

General Manager of Fluence’s Industrial Water & Reuse (IWR) Group, Manuel Garcia de la Mata, commented, “We are thrilled to have the opportunity to provide support to Eneva once again, having supplied a similar system for their Jaguatirica project several years ago. Companies like Eneva are making significant investments in the energy sector in Brazil and our product offerings and expertise make us ideally suited to support their growth. We look forward to leveraging our experience in Brazil and in the energy sector as we seek additional future opportunities.” 

Fluence functions in the water and wastewater treatment industry, with clients including Coca-Cola, Exxon, General Motors, and Du Pont, among others. According to a 2021 UNWater report, 2.3 billion people live in water-stressed countries, of which 733 million live in high and critically water-stressed countries. Overall, the global water and wastewater treatment market is expected to grow at a CAGR of 5.4% from 2022 to reach $1.4 trillion by 2032.

Since the start of CY23, Fluence’s pipeline has increased by 183%, with broad-based growth across Municipal, IWB (industrial wastewater and biogas), IWR (industrial wastewater and reuse), Southeast Asia and China. Most pipeline growth has come from North America, where the Company is focused on growing its presence. 

That said, in Q1 CY24, total revenue of $15.3 million was 29% lower than Q1 CY23 due to delays in commencing work on the Ivory Coast Addendum, compared to $12.1 million of revenue in Q1 CY23 from the Ivory Coast Main Works. Additionally, the Company eliminated its commercial opportunities in Israel. 

In H1 CY24, Fluence is projecting over $40 million in new order bookings. Its backlog increased by 124% YoY, with $85.15 million of Q1 revenue plus backlog forecasted to be recognised in Q2 to Q4 CY24. Fluence’s guidance for CY24 is $136 to $151 million of revenue and EBITDA of $5.3 to $6 million.

It also recently revamped its board and management to deliver a turnaround following its declines. Fluence’s work on the Eneva project is expected to commence immediately and be completed by the first quarter of CY26.