CLEARWATER, FLA.--(BUSINESS WIRE)--
OriginClear Inc. (OTC Pink: OCLN), Total Outsourced Water™, today announced that a large US power utility recently signed a Master Services Agreement (MSA) with its subsidiary, Progressive Water Treatment (PWT), for water filtration systems that will provide process water at three power plants.
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Twin 225 gallon per minute ultrapure water treatment system manufactured by Progressive Water Treatment for a Power plant. (Photo: Business Wire)
The utility has now issued a purchase order for about $1.8 million, for the first power plant. The total purchase price payable to PWT under the MSA is about $5 million, subject to certain conditions, including receipt and acceptance by PWT of additional purchase orders. There is no assurance as to whether, or when, PWT will receive $5 million under the PWT.
“We believe this contract reflects the excellent reputation enjoyed by PWT over 25 years for versatility in water engineering, and the extremely hard work by President of Sales, Mike Jenkins”, said Tom Marchesello, OriginClear COO. “While we expect the overall contract to take up to two years to deliver, it is a major leap forward.”
This win comes at a time when OriginClear’s Modular Water Systems division (MWS) achieved nearly $900,000 in booked orders in June alone. MWS is integrated with PWT and its revenue is recognized within PWT.
The new water treatment systems will be responsible for providing process water for the power plants. All new equipment will be placed in the current water treatment facilities. PWT will be responsible for providing new equipment that meets each location’s water flow rate and quality requirements as well as providing installation services of new equipment. The primary processes used will be Ultrafiltration, Reverse Osmosis and Electro Deionization (UF/RO/EDI). Electro Deionization is a chemical-free way to achieve ultrapure water in a number of markets including electronics, pharmaceuticals and power generation.
For PWT, this contract represents a return to large power plant contracts. In 2015, before it was acquired by OriginClear, PWT reports that it supplied a water treatment system for the same power company, totaling $2.3 million. In 2016, Minnesota-based public utility Xcel Energy (NYSE:XEL), awarded PWT a $1.8 million contract for a boiler feedwater treatment system; a power plant in the Northeast awarded PWT a $700,000 contract; and in the same year, PWT completed the installation and successful launch of a twin 300 gallon per minute ultra-filtration membrane system for Otter Tail Power Company at its Coyote Station in Beulah, North Dakota.
“We’re very happy with this new contract with a power utility”, said Marc Stevens, President of PWT. “We expect that this will build on already strong business in the company.”
About OriginClear, Inc. OTC Pink: OCLN
America’s infrastructure is broken. And our government is spending nearly 100 billion dollars to fix the nation’s 150,000-plus water systems; but runaway inflation is defeating that effort. So, local businesses are taking Direct Action to clean and recycle their own water. We’re helping them “cut the cord”, by developing outsourced pay-per-gallon programs and a future digital currency to streamline payments. To learn more about OriginClear®, please visit our website at www.originclear.com.
For more information, visit the company’s website: www.OriginClear.com
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OriginClear Safe Harbor Statement:
Matters discussed in this release contain forward-looking statements. When used in this release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein.
These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with our history of losses and our need to raise additional financing, the acceptance of our products and technology in the marketplace, our ability to demonstrate the commercial viability of our products and technology and our need to increase the size of our organization, and if or when the Company will receive and/or fulfill its obligations under any purchaser orders. Further information on the Company's risk factors is contained in the Company's quarterly and annual reports as filed with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason except as may be required under applicable laws.
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