QUEBEC CITY, PQ, Canada, Apr. 27, 2009 -- H2O Innovation Inc. announces it has signed several contracts to design and manufacture industrial process water treatment systems. These contracts totaling CAN$5 million bring the Company's sales backlog to CAN$27.3 million and further demonstrate H2O Innovation's expertise in developing high-tech industrial process water treatment systems.
Contract for a power generation station
TIC-The Industrial Company has awarded a contract to H2O Innovation for the design, fabrication and supply of a water treatment system for a power plant. The scope of work includes the supply of three fifty percent capacity trains comprising double-pass reverse osmosis system including pre-treatment system. The proposed system will provide high purity water for combustion turbines and for make up water to the combustion turbine intake air evaporative coolers.
First industrial contract in the energy sector in Egypt
An important Egyptian energy company has awarded a contract to H2O Innovation to design, manufacture and deliver a water desalination and demineralization system for the production of high purity industrial process water as well as drinking water. The desalination package consists of double pass reverse osmosis trains followed by cation/anion/mixed bed ion-exchange system. The contract will be executed on a fast-track basis to meet the client's expedited delivery requirement. This is the Company's first sizable industrial contract in the energy sector in Egypt.
Contracts in the U.S. Midwest
The Company has also been awarded three additional contracts to design, manufacture and deliver reverse osmosis systems for the production of industrial process water to companies in the energy and consumer staples sectors in the U.S. Midwest. These systems, of various capacities, will be delivered to new and repeat customers of H2O Innovation.
"The awarding of these contracts results from H2O Innovation's solid track record in delivering high-tech process water treatment solutions and from our experience in manufacturing highly efficient double-pass reverse-osmosis systems for industrial applications. It also illustrates the success of H2O Innovation's market diversification between the municipal, commercial and industrial markets. Winning a sizeable industrial contract from an energy company in Egypt is a welcomed first for H2O Innovation. Access to water is a pressing development issue for people and businesses in the entire Middle East region, and our membrane filtration technologies are ideally suited for this fast growing market" stated Frederic Dugré, President and CEO.
Increased bonding capacity
On an operational level, the Company announces that its bonding capacity has been increased from CAN$10 million to CAN$30 million. This change does not require an increase to collateral guaranties. The Company's bonding capacity enables it to insure its work during the construction and delivery phases of a project when such bonding coverage is requested by contract.
"This additional capacity could not have been obtained without our long standing high level of performance in project execution and a sound financial health. It will enable H2O Innovation to continue its growth and work on projects of ever greater size" concluded Frederic Dugré.
Exclusively dedicated to water treatment, H2O Innovation is establishing itself as a key player in sustainable development and the field of clean technologies. H2O Innovation designs, develops, produces and integrates state-of-the-art water treatment systems for the production of drinking water, the treatment of wastewater and industrial processed water in the municipal, commercial, pharmaceutical, industrial, mining, and energy markets.
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