Clean TeQ Water Ltd (ASX:CNQ) has signed an agreement with Chinese company MCC Energy Conservation and Environmental Protection, or MCC Environment, to distribute its water-cleaning BIONEX technology.
MCC Environment delivers waste processing and recycling equipment and design services. It’s a subsidiary of the state-owned China Metallurgical Group Corporation - a Chinese engineering, procurement and construction company and leader in the Chinese iron and steel industry – and part of the Minmetals group, a global fortune 500 mining company.
Pilot confirms technology
The companies have signed the agreement following a successful pilot program at a Tianjin steel factory, where BIONEX was used to remove nitrate from waste-water effluent without the use of membranes and with minimal brine production.
The pilot proved that Clean TeQ’s water-cleaning technology reduced operating costs and minimised the environmental footprint, and resulted in the company’s recognition as overall outstanding achievement winner of the global IchemE award in October 2021.
Exclusivity in Chinese steel sector
The agreement will be effective immediately, and part of the deal is that Clean TeQ Water will work with MCC Environment exclusively in promoting its BIONEX technology across the steel sector in China, where MCC Environment holds a majority market share.
The exclusivity will be for an initial period of three years provided minimum revenue objectives are met.
Clean and efficient water technology
Clean TeQ is optimistic that revenue under the agreement will be healthy – and there is more work in store. Following the pilot and this agreement, MCC Environment has commissioned Clean TeQ to design a large-scale treatment facility at the pilot site next year.
The steel sector in China is expected to increase its investment in water treatment over the coming years to meet increasingly stringent effluent regulations and also to reduce carbon emissions by installing more energy-efficient water technologies.
"MCC Environment is a leader in the steel sector in China," Clean TeQ CEO Willem Vriesendorp said. “We believe this partnership will dramatically expand our growth potential, especially after the planned commissioning of our first large scale plant in China at the beginning of 2022.”
MCC Environment will also become a non-exclusive distributor of the BIONEX technology for urban and rural sewage treatment outside of the steel sector. Clean TeQ Water has the right to terminate the exclusive rights granted after the first year if MCC Environment fails to achieve minimum project value requirements.