Clean TeQ Water Reports $11M PHOSPHIX® Deal, 98% Lithium Recovery Success

A Quarter of Milestones and Momentum

Clean TeQ Water Limited (ASX: CNQ) has marked a significant step forward in its growth trajectory with the announcement of its Q2 FY25 activities and cash flow report. The highlight is an $11 million contract awarded for the design and supply of a PHOSPHIX® phosphate removal plant in Ireland, the largest contract in the company's history. This milestone underscores Clean TeQ's expanding footprint in the global water treatment sector, particularly in nutrient remediation technologies.

The PHOSPHIX® plant is engineered to meet stringent European Union environmental standards, reducing phosphate levels in wastewater to below 1 mg/L with high water recovery rates. The project timeline spans over a year, including equipment delivery, installation, and commissioning phases, promising a steady revenue stream and operational momentum for Clean TeQ.

Operational Successes Across Continents

Beyond Ireland, Clean TeQ successfully delivered a BIOCLENS® mobile nitrate removal facility in Australia, demonstrating its commitment to tackling critical environmental challenges with innovative biotechnology. The Townsville Water Recycling project is nearing full commissioning, signaling readiness to support sustainable water management in Queensland.

In the uranium sector, the Heathgate Resources plant in South Australia has progressed to commissioning, leveraging Clean TeQ's proprietary ion exchange technology optimized for uranium recovery. This aligns with the global resurgence in nuclear energy as a low-carbon power source.

Lithium Recovery Breakthroughs and Strategic Funding

On the critical metals front, Clean TeQ's partnership with LithiumBank in Canada has yielded impressive results. Their continuous Direct Lithium Extraction (cDLE®) pilot plant achieved over 98% lithium recovery from low-concentration brines, producing battery-grade lithium carbonate. This positions Clean TeQ at the forefront of sustainable lithium extraction technologies, crucial for the electric vehicle and renewable energy markets.

Financially, the company bolstered its working capital with a $1 million convertible note from major shareholder Robert Friedland, reflecting strong insider confidence. Despite a modest cash reserve of $1.4 million at quarter-end, Clean TeQ maintains access to additional financing facilities and anticipates milestone payments from ongoing projects to improve liquidity.

Looking Ahead: Growth and Challenges

CEO Peter Voigt highlighted that while revenue was subdued due to project timing, the company is poised for a significant uplift in the coming months, driven by the ENVA contract execution and a robust pipeline of prospective orders. The company’s strategic shift towards technology licensing and annuity income models aims to create a more sustainable business foundation.

Clean TeQ’s advancements in water treatment, critical metals recovery, and renewable energy technologies reflect a diversified approach to addressing global sustainability challenges. However, the company must navigate ongoing market fluctuations in lithium prices and the inherent risks of project execution delays.