374Water Inc (NASDAQ:SCWO) announced that it has entered into an agreement with the City of Olathe, Kansas, for the sale and deployment of an AirSCWO 6 system along with a full-scale 30 wet tons per day pre-treatment and dewatering system.
The agreement is valued at approximately $4 million over the next two years, the company said on Tuesday.
Under the terms of the agreement, the City of Olathe will install the AirSCWO 6 system at its wastewater treatment facility to evaluate the Supercritical Water Oxidation (SCWO) process for sustainable sludge management and the treatment of additional waste streams.
The system will be used to process wastewater sludge under operational conditions, with a focus on assessing the technology’s ability to remove contaminants such as PFAS and other persistent organic pollutants.
The deployment will take place over a six-month period, during which Olathe will collect data on the system’s performance. Following this period, the city will review the potential for scaling the technology for broader use at its facility.
Stephen Jones, 374Water interim CEO, said the partnership is an example of how cities and waste destruction technology companies can collaborate on complex waste management challenges.
“This sale and deployment at Olathe represents a critical step in evaluating AirSCWO technology as a scalable and environmentally responsible solution for municipal wastewater treatment,” Jones said.
“Insights gained from this project are expected to inform future adoption of AirSCWO systems by other municipalities seeking to reduce sludge disposal costs, mitigate environmental risks, and comply with emerging regulatory standards.”
Sabrina Parker, City of Olathe Water and Sewer Manager, added: "We are excited to commence operations with the AirSCWO system and dewatering capabilities, which will help us assess new approaches to managing biosolids while advancing our environmental goals."
Shares of 374Water jumped at the open, trading around 17.3% higher on Tuesday morning in New York.