Chariot Ltd (AIM:CHAR, OTC:OIGLF) said it has agreed the acquisition of ENEO Water PTE Limited, an African clean water business which is expected to complement its transitional power and green hydrogen businesses.
ENEO utilises an efficient, modular and scalable reverse osmosis technology that can be 100% powered by solar energy to produce desalinated water, Chariot noted in a statement. It is presently building a proof-of-concept project at the largest windfarm in the Republic of Djibouti.
"Water is a precious commodity with cleanliness, scarcity and sustainability of supply becoming growing themes throughout Africa,” said Benoit Garrivier, Chariot’s head of transitional power in the statement.
“This acquisition of ENEO is a strong strategic fit for Chariot with the renewable power and water sectors sharing similar geographic and offtake markets.
“The treatment of brackish and contaminated water is an important consideration for commercial and industrial companies and desalinated water is also an important component of green hydrogen production, so we also have a natural overlap within our current portfolio and network."
Garrivier added: “The project in Djibouti provides important proof of concept and we are very pleased to be part of this operation, helping to provide water produced through renewable sources to the local communities.
“As the technology we use is both modular and scalable we look forward to expanding this offering, in line with our mission of creating value whilst delivering a range of positive impacts."
Chariot is acquiring ENEO for an initial consideration of US$500,000, paid in shares, with a further US$500,000 to be paid upon achievement of financial close on future projects.