Waste water treatment company De.mem (ASX: DEM) has opened a door to Australia’s transformative clean energy sector having landed a milestone contract with AGL Energy (ASX: AGL) for water treatment equipment to an AGL power station.
As one of Australia’s largest energy retailers, AGL generates energy from power stations that use thermal power, natural gas, wind power, hydroelectricity, solar energy, gas storage and coal seam gas sources, with this initial contract valued at $550k to De.mem.
“We are delighted to be growing our presence in the highly attractive Australian power generation segment with high quality institutional clients,” said De.mem CEO, Andreas Kroell.
“The power generation industry is an important target market for De.mem as it requires large volumes of the highest quality treated water for use in boilers, turbines and cooling towers.
“We look forward to continuing to grow our presence within this segment.”
While this contract is the first for De.mem from AGL, it follows a trend from the water tech company which is growing its client portfolio in Australia having secured a $400k contract in September from an unnamed Australian energy producer and followed up by a $2.6m desalination contract two weeks later.
For the Quarter ending 31 December 2020, De.mem reported $5.6m in cash receipts to bring their calendar year sales to approx $16m, representing a 36% increase on CY2019.
With $544k cashflow, the Quarter was also De.mem’s first Quarter of positive cashflow which has been accelerated by large contracts won throughout 2020 as the Company capitalises on the rapidly growing trend towards clean energy and renewable resources.