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Bluewater Bio inks deal with South Africa's Headstream Water for wastewater treatment solutions

26th Oct 2009, 9:22 am Bluewater Bio inks deal with South Africa's Headstream Water for wastewater treatment solutions

Bluewater Bio International (AIM: BWB) announced that it has signed an exclusive representation agreement in South Africa with Headstream Water Holdings. The license agreement is for an initial three year period and the license can be extended for further two year periods in perpetuity if Headstream achieves certain sales targets.


Bluewater Bio provides a proprietary wastewater treatment process called HYBACS. HYBACS uses naturally occurring bacteria Bacillus to produce a odourless and re-usable water resource by removing harmful nitrates, phosphates and carbonaceous matter from a wide variety of domestic, agricultural and industrial effluents.


In South Africa Headstream’s initial focus will be on restoring performance and upgrading plants in particularly stressed areas, and on private sector operated plants serving mining operations. Headstream will officially open its offices in Johannesburg and Cape Town in January 2010. In South Africa, Headstream will be headed up by Justin Moore, who has over 30 years experience and has advised major water utilities in South Africa including Umgeni Water and Rand Water.


Headstream has identified three projects under consideration in the North West Province and one in Mpumalanga, in the North East.


Bluewater Bio CEO, Daniel Ishag commented on the deal which will allow Bluewater to expand into a region with significant growth potential: "South Africa is a priority region for Bluewater Bio because many plants in the country are dysfunctional. This is down to poor maintenance, lack of capital expenditure and, most importantly, overloading because of population growth."


As such Bluewater Bio has identified that among South Africa’s 1,600 registered wastewater plants, official estimates predict that over 60% of the plants are ‘dysfunctional’ and further industry sources indicate that level could actually be as high as 80%. According to Daniel Ishag, ‘There is no doubt that the remainder of the sub Saharan African countries are in a far worse predicament and South Africa will be our central base as we enter this market.’


Bluewater Bio and Headstream expect to expand into other sub Saharan African countries approximately 12-18 months after the South African launch.

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