Clean TeQ Water Secures Up to A$5.4 Million FEED Contract for Syerston Scandium Circuit

Significant Engineering Contract for Scandium Recovery

Clean TeQ Water (ASX:CNQ) has been awarded a Front End Engineering Design (FEED) and early works contract by Sunrise Energy Metals (ASX:SRL) for the scandium recovery circuit at the Syerston Scandium Project in New South Wales. The contract, valued at up to A$5.4 million, comprises a firm FEED scope of approximately A$2.0 million and a provisional sum of A$3.4 million for long lead deliverables, which Sunrise may release in tranches during the FEED phase.

This award follows Clean TeQ’s completion of preliminary testwork and engineering packages earlier this year, marking a clear progression from concept to detailed design for the scandium flowsheet. The project focuses on two critical components: the continuous Resin-in-Pulp (cRIP) ion exchange circuit, powered by Clean TeQ’s proprietary Moving Bed Ion Exchange (MBIX) technology, and the downstream scandium refinery.

MBIX Technology Underpins Scandium Processing

MBIX is a continuous counter-current ion exchange system that offers improved efficiency over conventional fixed-bed methods. It enables higher resin utilisation, lower water and reagent consumption, and stable operation despite variable feed conditions. These advantages are crucial for processing scandium, a high-value critical metal with growing demand in advanced alloys and fuel cells.

Clean TeQ’s CEO Peter Voigt emphasised the long-standing collaboration between the two companies, noting that the contract validates the technical work delivered so far and sets the stage for scaled project execution. The FEED contract is structured on a schedule-of-rates basis, meaning revenue will be recognised based on hours worked and expenses incurred, with the bulk expected in the 2027 financial year.

Contract Terms and Strategic Implications

The contract’s provisional sum for long lead deliverables, valued at A$3.4 million, is not committed upfront and will be released only upon Sunrise’s instruction. This approach provides flexibility while protecting the project’s timeline. Termination provisions are standard, with Clean TeQ compensated for work completed and third-party commitments if the engagement is suspended or ended prematurely.

Sunrise Energy Metals retains exclusive rights to MBIX for scandium, nickel, and cobalt, but Clean TeQ applies the technology across a broader spectrum, including water treatment and other critical minerals. This contract reinforces Clean TeQ’s positioning in the critical metals sector, complementing recent contract wins and technology deployments in water and tailings management.

Given Clean TeQ’s recent momentum, including growth in recurring revenue streams and successful project deliveries in Europe and Australia, this FEED contract adds a meaningful engineering services milestone that could underpin further involvement in the Syerston project’s development and beyond.