Sprintex has completed commissioning of its compressor systems with Mest Water and is poised to receive a €3.8 million purchase order, marking a pivotal step in expanding its environmental technology footprint across the EU.
- First large-scale order of 200 compressor units valued at €3.8 million expected next month
- Production to start at 30 units per month, scaling to 1,000 units annually by 2026
- Order validates Sprintex-Mest Water technology for ammonia emission reduction in the Netherlands
- Potential €19 million annual revenue from Netherlands market alone
- Plans to optimize compressor models for scalable and cost-efficient production
Commissioning Success and Initial Order
Sprintex Limited (ASX: SIX) has announced the successful commissioning of its custom compressor systems developed in partnership with Dutch environmental technology firm Mest Water. This milestone paves the way for an imminent large-scale purchase order of 200 units, valued at €3.8 million (A$6.3 million), from a major farming company in the Netherlands. Production is scheduled to commence in March at Mest Water's new 31,000m2 manufacturing facility in Tubbergen, marking the transition from development to commercial deployment.
The compressors are integral to Mest Water's patented ZLD-Up system, designed to sustainably process manure and significantly reduce ammonia emissions, a pressing environmental concern under stringent EU regulations. This initial order not only represents a near-term revenue stream for Sprintex but also serves as critical validation of the technology's efficacy in real-world agricultural applications.
Scaling Production and Market Potential
Starting with an initial production rate of 30 units per month, Sprintex and Mest Water anticipate scaling output to at least 1,000 units annually by 2026. This volume translates to a projected €19 million (A$31 million) in revenue from the Netherlands alone, a market with approximately 21,000 cattle and pig farms facing strict ammonia emission limits. The successful deployment here is expected to open doors to other EU member states with similar environmental mandates.
Sprintex is also exploring production efficiencies by potentially consolidating compressor models. Instead of developing multiple sizes, the company is considering using a single model in parallel configurations to meet higher capacity needs. This approach could streamline manufacturing, reduce costs, and accelerate market rollout, enhancing scalability and competitive positioning.
Strategic Implications and Broader Applications
CEO Jay Upton highlighted the broader significance of this collaboration, emphasizing the environmental and economic benefits of reducing ammonia emissions while converting waste into valuable resources. The partnership with Mest Water exemplifies how innovation in compressor technology can address urgent ecological challenges while creating new revenue streams.
Beyond agriculture, Sprintex plans to expand its mechanical vapor recovery (MVR) compressor technology into other sectors such as food and beverage, chemical processing, wastewater treatment, and renewable energy. Offering three MVR compressor models this year, the company aims to diversify its market presence across the EU, leveraging its clean air compressor expertise.
As the EU tightens environmental regulations, Sprintex’s validated technology and growing production capacity position it well to capitalize on increasing demand for sustainable industrial solutions.
Bottom Line?
Sprintex’s breakthrough order signals a promising revenue trajectory and sets the stage for broader EU market penetration.
Questions in the middle?
- Will Sprintex finalize a single compressor model strategy or develop multiple sizes for scalability?
- How quickly can production ramp beyond 1,000 units annually to meet growing EU demand?
- What are the prospects for expanding beyond the Netherlands into other EU countries with similar emissions regulations?