Water waste management company, Fluence Corporation (ASX: FLC) are set to expand their international recognition following news that the company have sold their first Aspriral System to clean energy corporation, Three Gorges Group. The company is hopeful that the transaction will be the start of a long-term partnership with the Chinese Government owned company.
Three Gorges Group was created by the Chinese Government in 2018 with the sole objective to improve the quality of one of the most polluted rivers in the world, the Yangtze River. The improvement of wastewater treatment in rural China is seen as a large priority for the government, who have injected significant funds and implemented mandated wastewater improvement strategies for such remediation.
Fluence’s Aspiral unit, valued around US$70,000, includes their Membrane Aerated Biofilm Reactor (MABR) proprietary technology, capable of treating 30,000 litres of wastewater per day. Importantly, the process meets China’s stringent 1A standards surrounding wastewater discharge.
Henry Charrabé, Managing Director and CEO for the company commented on the news “We are delighted to have the opportunity of building another strategic partnership in China and further supporting environmental remediation in the country. We are confident that the initial Aspiral order will be a stepping-stone for Fluence to access other opportunities available in the Yangtze River Great Protection zone. It will also allow us to build a deeper relationship with the highly respected Three Gorges Group.”
Late last year, Fluence successfully raised over A$38m in a share-purchase plan (A$2.3m) and an institutional and sophisticated placement (A$38m) at an offer price of A$0.44. Mr Charrabé indicated that a significant portion of the funds raised were to be allocated to driving expansion in China surrounding their MABR sales. It appears Fluence are hopeful that today’s news is reflective of their recent efforts and may provide the company with further opportunities within the sector in the future.
Following news of the sale, FLC’s share price surged as high as 13.2% from Friday’s close, indicating investors have responded positively to the news of the unit sale. Shares in the company are currently trading at A$0.29.
Bronte Moore is a business journalist at Emerald Financial whilst also completing a JD at the University of Melbourne.
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