The Amplio Group (London, U.K.), a leading international operator and investor in the renewable energy and environmental sectors, announces today that its investment company Envirogen Technologies Inc. (“Envirogen”), a water technology and services solutions provider with existing business in municipal and industrial water and environmental treatment applications, has secured US$50m equity financing. Envirogen‟s financing has been secured from an international provider of alternative investment solutions for a pipeline of design, build and operate (“DBO”) environmental treatment projects. The financing will be deployed on a project-by-project basis and puts Envirogen on a very secure financial footing for all future projects.
The US$50m financing announced today ensures that Envirogen has sufficient investment capital for future design and installation projects that feature Envirogen‟s innovative, proprietary water technology and long-term service agreements. Target municipal projects include drinking water and wastewater treatment and groundwater remediation for both organic and inorganic contaminants. Industrial projects are expected to include groundwater and wastewater treatment as well as environmental improvement projects such as the recovery of materials from process or waste streams for use as recycled materials.
Envirogen was formed in October 2009 by Amplio Filtration, a subsidiary of Amplio Group from the assets of the former Nasdaq-listed Basin Water Inc. (NASDAQ: BWTR), which Amplio acquired under Chapter 11 for US$2m. Since its formation, Envirogen, alongside maintaining all existing contracts, has also won a number of new orders including:
- eight new contracts across the United States featuring a „green‟ biofiltration technology for odour control at municipal wastewater facilities;
- agreement to provide process design and materials for a metals recovery system in Poland for the Polski Naftowy Group;
- new contracts that demonstrate the commercial viability of the company‟s high efficiency MinXTM ion exchange technology for the underserved small drinking water system market; and
- an innovative nutrient removal system for a Pennsylvania wastewater plant that addresses the environmental goals of the regional Cheapeake Bay Tributary Strategy.
Andrea Davi, Head of Amplio Filtration, commented:
“Envirogen has had an extraordinary first six months under the Amplio Group, winning numerous contracts and already becoming profitable. The US$50m financing puts Envirogen on a very secure financial footing for all future projects, not only underlining the strength and scope of the business but emphasising the high quality of its technology and the ongoing servicing it provides. Additionally, with the global water treatment market set to grow by 6.4% this year to US$39.9bn, we remain confident of Envirogen‟s continued success and look to expand its innovative technologies into other markets.”
Michael Stark, President & CEO of Envirogen, commented:
“We are delighted to be announcing this US$50m financing today as by far the two essential and expensive components of a treatment system installation are the initial upfront capital outlay and the next 10-20 years of operating costs. By adding a robust financing element to our design, build and operate capabilities, we look forward to ensuring the growth of Envirogen and assist both municipalities and companies better manage their costs and maximise their investments in environmental technology. Access to these funds will allow us to broaden the scope and increase the flexibility we have to develop true low lifecycle cost solutions for our customers”
Riccardo Segat, CEO of Amplio Group, added:
“This financing for Envirogen continues to demonstrate Amplio Group‟s capabilities in our core sectors to secure funds to scale up our investments. In addition to the US$50m to build and operate our water treatment plants, Amplio Solar in July 2009 secured €40m to build a pipeline of up to about 100 MW of photovoltaic solar plants in Europe over two years large scale solar plants.”