Parkway’s Brine Tech Breakthrough Tackles CSG Waste Disposal Risks

Robust Financial Performance

Parkway Corporate Limited (ASX: PWN) has delivered a standout December 2024 quarter, reporting operating revenues of $3.48 million, a remarkable 420% increase compared to the prior corresponding period. This surge was underpinned by strong contributions from its Industrial Operations division, particularly the Tankweld business unit, and was complemented by efficient cash conversion of $4.08 million. The company’s EBITDA also improved to $0.23 million, reflecting a strategic focus on profitability alongside growth.

Advancing Brine Processing Technology

Central to Parkway’s growth narrative is its pioneering work in brine treatment technologies, targeting the substantial waste brine challenges faced by Queensland’s coal seam gas (CSG) industry. Parkway’s Industrial Technology division has made significant strides, notably achieving a high-purity salt product exceeding 99.9% NaCl purity. This breakthrough is critical for enabling downstream electrochemical processes to produce valuable industrial chemicals such as caustic soda and hydrochloric acid.

These developments are part of Parkway’s broader QBS Master Plan, which envisions an integrated industry-wide solution to convert CSG waste brines into commercially valuable products, thereby addressing environmental concerns and regulatory challenges associated with brine disposal.

Strategic Project Developments and Partnerships

Parkway has executed a binding term sheet with an industrial-scale project developer to jointly develop the QBS Brine Electrolysis Complex. This facility is strategically located near key industrial chemical markets and is designed to process over half of Queensland’s CSG waste brine and salts. The project’s modular design and co-location opportunities promise operational synergies and accelerated development timelines.

Additionally, Parkway is progressing plans for the QBS Brine Management Complex, intended to consolidate and pre-treat regional CSG brines. The company has secured several MOUs for potential project sites and is exploring partnerships with sustainability precinct proponents to leverage shared infrastructure.

Market Position and Growth Outlook

With a growing client base spanning mining, energy, municipal, and industrial sectors, Parkway’s Industrial Operations division is well-positioned to capitalize on significant infrastructure investments, particularly in Victoria where $15 billion is earmarked for water-related projects over the next five years. Parkway’s integrated EPC and D&C capabilities further strengthen its competitive edge in delivering turnkey water treatment solutions.

While the company refrains from issuing formal guidance due to project timing uncertainties, its expanding project backlog and pipeline signal a positive trajectory towards sustained profitability. Parkway’s ongoing R&D investments and government R&D tax incentives also support its innovation-driven growth strategy.

Environmental and Industry Impact

Parkway’s technology addresses a critical environmental challenge in the CSG sector: the management and disposal of millions of tonnes of waste brine and salts. By converting these waste streams into industrial chemicals, Parkway not only mitigates environmental risks but also creates new revenue streams, aligning with global sustainability trends and regulatory expectations.

Engagements with Queensland government bodies and local councils underscore the strategic importance of Parkway’s projects, which could set new benchmarks as best available technology (BAT) for brine treatment in the region.