Environmental intelligence technology organisation Envirosuite Limited (ASX:EVS) (Envirosuite) is pleased to update the market on the accelerating growth of EVS Water. The newest member of Envirosuite’s product lines, EVS Water, a product that launched in 2021 and is already nearing its initial commercial objective of achieving $1 million in total sales.
What is EVS Water’s market reach?
The $2.8bn annual global market opportunity for EVS Water is the ultimate prize. Recent wins in Europe, the United States, Australia and Singapore indicate that EVS Water has a stand-out market offering with its unique IP, supported by Envirosuite’s operational reach and existing customer base across more than 40 countries means it is well positioned to pursue it.
The award winning, EVS Water Plant Optimiser software through the outputs of its unique machine-learning and deterministic modelling, helps its industry customers to materially reduce the two highest costs in water treatment and delivery: electricity and chemicals.
Plant Optimiser can materially decrease the collateral environmental footprints of its users’ operations. EVS Water’s SeweX software is an advanced mathematical modelling tool that helps utilities to proactively respond to safety, corrosion and odour risks in sewer networks.
The commercial proposition of EVS Water is that the customer’s cost of deployment is more than offset financially by productivity gains as well as substantially extending the life of water assets through reduced chemical strain that delays the capital cost of upgrade and replacement. Customers have also noted that climate impact and reporting is a major driver for deploying EVS Water to reduce electricity consumption and the associated emissions.
What are the executive’s thoughts on EVS Water?
CEO, Jason Cooper said, “EVS Water is the newest, highest margin, and fastest growing of our three product lines with the largest prospective market size. Our client wins show that it is quickly receiving market validation by industry leaders in each major region of the globe.”
“As we have shown with EVS Aviation, we know what it takes to be a global market leader. With the supportive capital raise completed in December 2021 we are well funded to achieve our growth objectives by leveraging Envirosuite’s existing global footprint of customers, people and partners to penetrate the enormous market for EVS Water,” Jason further said.
“We’ve invested in industry experienced sales team, along with a product and development team that includes several PhDs to expedite the commercialisation and scalability of EVS Water. With the initial success and scalable opportunities ahead there is confidence that this product stream could be a substantial future contributor to group earnings,” Jason said.
What are the success stories of EVS Water?
Brief case studies on recent key customer wins for EVS Water:
Water Corporation WA – Australia
The initial pilot project for Water Corporation WA, principal supplier of water, wastewater, and drainage services to over 2 million Western Australians, was successfully delivered validating value creation for all project stakeholders. A further 3 sites have been approved for discussion that could potentially take the total to 7 with further sites anticipated.
Public Utility Board of Singapore (PUB), Singapore – Asia
PUB is the national water agency under the Ministry of Sustainability and the Environment that manages Singapore’s water supply, water catchment, and used water in an integrated way. Singapore uses 430 million gallons of water per day, and PUB is ensuring that this water is captured, safe to use and supplied. It is seen as a leader when it comes to innovation.
EVS Water Optimiser will be used to help PUB determine the required coagulant dosage in water treatment that will make the process faster, more connected, and automated.
DAM, Santa Maria Spain – Europe
DAM is contracted by the Catalan Water Agency (ACA) for the services of conservation, maintenance and supply of the Torredembarra sanitation system and the Pla De Santa Maria.
One of the requirements is for DAM to eliminate the presence of hydrogen sulfide throughout the system (pipes, pumps, treatment plant), and the proposal for this must include continuous monitoring through IoT which allow continuous monitoring and real-time actions.
DAM will use EVS Omnis to monitor overground odours and use Sewex to model hydrogen sulphide build up underground to mitigate odour events from the sewage network.
The City of Kalamazoo, Michigan – USA
The City of Kalamazoo in Michigan has been a long-term Envirosuite client, utilising the EVS Omnis solution to manage odour complaints around the city- owned wastewater treatment plant. Based on the success of that solution, the City of Kalamazoo engaged with Envirosuite to assist in managing odour complaints coming from the sewer network.
In the current state, investigations into the root cause of the sewer odour issues are time-consuming and it is difficult to completely cover the large area of the network. The City of Kalamazoo authorities are also concerned about undetected issues that may lead to future operational disruption which is a critical concern for infrastructure operators.
Subject to the success of the initial implementation of the SeweX solution in addressing these concerns, SeweX will be considered for a wider area of the sewer network.
Both the City of Kalamazoo and DAM validates the opportunity for upsell and cross sell of EVS Water to existing and new wastewater treatment facilities. Envirosuite is currently engaged in discussions with similar profiled cities and wastewater operators globally.
What is Envirosuite’s go to market strategy?
Envirosuite continues to work with leading engineering and water consulting group GHD in progressing opportunities in the industrial and desalination industries across the globe with a consulting-led incorporation of the EVS Water technology platform.
EVS Water is also receiving strong interest from recent customer-led inclusion in major Water industry events including Singapore International Water Week, a flagship conference for the water industry in APAC; Global Water Summit in Spain, a global event for the public and private sectors; and Ozwater, the signature conference for the water industry in Australia.
For the purposes of compliance with Guidance Note 8 of the ASX Listing Rules, the Company confirms that the commercial contracts referred to above are not individually financially material to the Company revenues. There are no other conditions to be satisfied prior to the parties being legally bound to proceed, with any contract mentioned above.