Clean TeQ Water Secures €7M PHOSPHIX Contract, Boosts Cash Flow in Q3 FY25

Operational Momentum Across Core Technologies

Clean TeQ Water Limited (ASX: CNQ) has delivered a robust quarterly update for Q3 FY25, underscoring sustained progress across its portfolio of water treatment and resource recovery projects. The company’s PHOSPHIX® phosphate removal plant in Ireland is advancing on schedule, with the design phase nearly complete and long-lead equipment orders placed. This project, secured through a significant €7 million (AU$11 million) contract with ENVA, positions Clean TeQ as a leader in advanced nutrient removal amid tightening European phosphorus discharge regulations.

Meanwhile, commissioning of the U-Column Enhanced Desorption process at Heathgate Resources’ uranium plant in South Australia has commenced, with performance testing expected to conclude shortly. This technology, built on Clean TeQ’s Moving Bed Ion Exchange (MBIX) platform, aligns with the global resurgence of uranium as a clean energy source and highlights the company’s strategic focus on sustainable mining solutions.

Expanding Industrial and Municipal Footprint

The Townsville Water Recycling Facility reached a key milestone by successfully completing its C4 commissioning phase, moving closer to full operational status. This large-scale municipal project demonstrates the scalability and versatility of Clean TeQ’s water recycling solutions.

On the industrial wastewater front, Nyrstar has issued a Letter of Intent enabling Clean TeQ to commence detailed design for a full-scale DESALX® plant, following successful pilot trials that showcased effective sulphate and selenium removal from smelter wastewater. Final contract negotiations are ongoing, marking a critical step toward commercial deployment.

Financial Performance and Strategic Positioning

Financially, Clean TeQ reported a notable increase in quarterly cash receipts from customers to $3 million, up from $1.8 million in the prior quarter. The company achieved positive net operating cash flow of $0.5 million and ended the quarter with $1.7 million in cash reserves, bolstered by a $0.6 million R&D refund. Net trade receivables stood at $2 million, reflecting growing revenue momentum as projects transition into execution phases.

Clean TeQ is also advancing commercialization of its ATA® tailings dewatering technology, with promising pilot results at Harmony Gold’s St. Helena Mine, and NematiQ’s graphene membrane technology, which is progressing through a Commonwealth-funded feasibility study targeting decentralized drinking water treatment in remote communities.

Outlook and Market Context

Looking ahead, Clean TeQ plans to push PHOSPHIX® and DESALX® projects into final design and delivery stages, complete performance testing at Heathgate, scale ATA® deployments, and continue piloting lithium recovery technologies with major industry players. The company’s strategic shift towards technology licensing and annuity income models aims to underpin sustainable long-term growth.

With global trends favoring stricter environmental regulations and circular economy principles, Clean TeQ Water is well-positioned to capitalize on expanding demand for advanced water treatment and resource recovery solutions across mining, industrial, and municipal sectors.